Shares were boosted by positive bank earnings reports.
United States
Stocks were slightly higher Friday with the Nasdaq up 0.5 percent and the S&P 0.2 percent higher. The Dow Jones industrials however were virtually unchanged (down 5.27 points). For the week, the Dow was down 0.4 percent, the S&P slipped 0.1 percent but the Nasdaq added 1.0 percent. Investors absorbed earnings from major banks including JPMorgan Chase. The bank reported fourth quarter results that exceeded expectations. Bank of America reported fourth quarter earnings that came in above expectations although its revenues for the quarter came in slightly below. Wells Fargo reported fourth quarter earnings that fell to $0.96 per share from $1.00 per share a year ago. The company reported adjusted earnings of $1.03 per share.
December retail sales were up 0.6 percent on the month after edging up by a revised 0.2 percent in November. Excluding auto sales, retail sales inched up 0.2 percent after rising by 0.3 percent in November. December producer price index for final demand rose 0.3 percent after climbing by 0.4 percent in November. Excluding food and energy prices, core producer prices edged up 0.2 percent after rising by 0.4 percent in November. The preliminary January University of Michigan’s consumer sentiment index unexpectedly slipped 0.1 point to 98.1.
These data reflect observations at 4:00 PM US ET Friday. Gold at the afternoon London fixing was down US$14.70 to US$1,190.35. Copper futures were up 0.7 percent to US$2.69. WTI spot crude was down 64 US cents to US$52.37. Dated Brent spot crude was down 56 US cents to US$55.45. The US dollar was up against the yuan. It was down against the euro, pound, Swiss franc and the Australian dollar. However, it was virtually unchanged against the yen and the Canadian dollar. The Dollar Index was down 0.25 percent. The yields on both the US Treasury 30 year bond and the 10 year note were up 4 basis points to 2.99 percent and 2.40 percent respectively. All US markets will be closed on Monday, January 16 for Martin Luther King Jr Day.
Europe
Stocks including pharmaceuticals rebounded Friday from Thursday’s declines. Comments from US President-elect Donald Trump’s press conference on Wednesday weighed on the sector. The FTSE added 0.6 percent, the CAC gained 1.2 percent and both the DAX and SMI were 0.9 percent higher. FTSE reached record highs on Friday, extending its historic winning streak to a 14th straight day of gains. For the week the FTSE was up 1.8 percent, the SMI added 0.4 percent and both the CAC and DAX were 0.3 percent higher.
Bank stocks also turned in a strong performance Friday after some of the largest US banks reported better than expected quarterly results. Merck advanced after announcing a partnership with Palantir giving the latter a cut of Merck’s resulting profits. Deutsche Bank and Commerzbank gained. In Paris Technicolor plunged tumbled after issuing downbeat trading update for 2016. Société Générale, BNP Paribas and Crédit Agricole finished higher.
In London, Mitchells & Butlers increased after the pub operator reported strong festive period sales across all brands. Grafton Group after it said its group revenue for the year to the end of December rose 13 percent on a reported basis and by 10 percent in constant currencies. ITV advanced on a broker upgrade. Specialist building products distributor SIG jumped after it reported a 1.2 percent rise in group sales for the year to the end of December. Fiat Chrysler climbed in Milan after tumbling the previous day after the US Environmental Protection Agency accused the company of using undeclared software to pass laboratory emissions tests. House-builders including Kingfisher, Barratt Development, Persimmon, and Taylor Wimpey helped boost the FTSE. However, Rolls Royce, Randgold Resources, Polymetal International and Fresnillo were lower.
Asia Pacific
Asian stocks were mostly lower Friday and for the week. Disappointing Chinese merchandise trade data dented investor sentiment. Oil extended overnight gains and the dollar edged up from a five-week low against the yen, helping limit overall losses in the region.
The Shanghai Composite declined for a fourth consecutive day, this time by 0.2 percent. China’s exports declined at a faster-than-expected pace in December. The Hang Seng however added 0.5 percent. December Mainland China exports dropped 6.1 percent from a year ago while imports were up 3.1 percent. For the week, the Shanghai Composite was down 1.3 percent while the Hang Seng added 1.9 percent.
The Nikkei and Topix were up 0.8 percent and 0.6 percent respectively. Seven & i Holdings jumped after the convenience store operator reported a 4 percent increase in operating profit for the nine months ended November 2016. Takata soared on reports that the airbag maker will announce a deal with US regulators to settle a criminal probe. On the week, the Nikkei lost 0.9 percent and the Topix retreated 0.5 percent.
Both the S&P/ASX and All Ordinaries were 0.8 percent lower Friday. The indices were dragged down by banks as the euphoria over Trump’s policy plans faded and investors waited for the US reporting season to kick off. The big four banks retreated along with Rio Tinto and Fortescue Metals Group. Energy stocks also closed mostly lower despite overnight gains in oil. Both indices lost 0.6 percent on the week.
The Kospi was down 0.5 percent but gained 1.4 percent on the week. The Bank of Korea left interest rates unchanged at 1.25 percent for a seventh consecutive month as expected. The BoK cut its 2017 growth forecast saying the global economic recovery will be affected by factors such as the directions of the new US government’s economic policies, the pace of monetary policy normalization by the US Federal Reserve and the movements toward spreading trade protectionism. The Sensex was virtually unchanged (down 9.10 points) on the day and was up 1.8 percent on the week.
Looking Forward

Central Bank activities

Jan 18

Canada

Bank of Canada Monetary Policy Announcement

United States

Federal Reserve Beige Book Published

Jan 19

Eurozone

European Central Bank Monetary Policy Announcement

The following indicators will be released this week…

Europe

Jan 16

Eurozone

Merchandise Trade (November)

Jan 17

Germany

ZEW Survey (January)

UK

Consumer Price Index (December)

Producer Price Index (December)

Jan 18

Eurozone

Harmonized Index of Consumer Prices (December)

UK

Labour Market Report (December)

Jan 20

UK

Retail Sales (December)

Asia Pacific

Jan 16

Japan

Producer Price Index (December)

Machinery Orders (November)

Jan 19

Australia

Labour Force Survey (December)

Jan 20

China

Industrial Production (December)

Retail Sales (December)

Gross Domestic Product (Q4.2016)

Americas

Jan 17

United States

Empire State Survey (January)

Jan 18

United States

Consumer Price Index (December)

Industrial Production (December)

Jan 19

United States

Initial Unemployment Claims (week ending prior Saturday)

Housing Starts (December)

Philadelphia Fed Manufacturing Survey (January)

Canada

Manufacturing Sales (November)

Jan 20

Canada

Consumer Price Index (December)

Retail Sales (November)

Global Stock Markets

*Note — all releases are listed in local time.

Source: Fidelity

Fidelity disclaimer:

The objective of this page is to present users with objective news, information, data and guidance on personal finance topics drawn from a diverse collection of sources including affiliated and non-affiliated financial services publications. Content is not intended to provide tax, legal, insurance or investment advice and should not be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security or investment by any Fidelity entity or any third-party.

Jesmond Mizzi Financial Advisors Disclaimer:

This article, does not intend to give investment advice and the contents therein should not be construed as such. Jesmond Mizzi Financial Advisors Limited is licensed to conduct investment services by the MFSA and is a Member Firm of the Malta Stock Exchange. The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article. For further information contact Jesmond Mizzi Financial Advisors Limited at 67, Level 3, South Street, Valletta, or on Tel: 21224410, or email [email protected]