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John Hancock: Weekly Market Recap Week Ended January 18th

January 21, 2019

 

Trade catalyst

Stocks posted their biggest daily gain of the week on Friday amid signs of potential progress in the U.S.-China trade dispute, including the possibility that China might commit to buy more U.S. goods. China’s top trade negotiator is scheduled to visit Washington on January 30 for two days of talks.

 

Four in a row

The major indexes climbed around 3%, marking their fourth positive weekly result and easing much of the sting from the market’s worst December result since 1931. The S&P 500 and the Dow are both up around 13% from a recent low on December 24; year to date, the indexes have gained 6% to 7%.

 

Dividend haul

S&P Dow Jones Indices is projecting that dividend payments this year by companies in the S&P 500 will grow 7% to 8%. That would be down from the nearly 10% year-over-year growth rate in 2018, but it would mark the 10th year in a row in which dividends have increased overall.

 

Volatility and trading

Although market volatility picked up in late 2018, major banks didn’t see an increase in trading revenue. The five largest Wall Street firms reported their combined revenue from trading operations in the fourth quarter fell 6% from a year earlier, according to The Wall Street Journal.

 

Source: https://wmr.jhinvestments.com