Week of Sept 23 2016 Weekly Recap & The Week Ahead
“A person who never made a mistake never tried anything new.” — Albert Einstein
1. OPEC and Non-OPEC Producers Are Close to Reaching an Output Deal — OPEC and non-OPEC producers are close to reaching an output stabilizing deal, Venezuelan President Nicolas Maduro declared, a day after Iran welcomed any move aimed at market stability. OPEC members may even call an extraordinary meeting to discuss oil prices if they reach consensus at an informal gathering in Algiers this month, OPEC Secretary-General Mohammed Barkindo said during a visit to Algeria.
2. U.K. Prime Minister Theresa May Visits Wall Street Over Brexit — UL Prime Minister May landed in New York to consult with some of America’s largest firms over how her country should proceed with Brexit. The prime minister held two gatherings: a roundtable discussion with big investors in the U.K. including Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS), BlackRock (NYSE:BLK), IBM, and Amazon (NASDAQ:AMZN). She then hosted a reception for about 60 American executives, as well as British businesses that invest in the U.S.
3. S&P Real Estate Sector Draws Interest — the official launch of the S&P 500 real estate sector – the first subdivision to be added since 1999. This sector is made up of 28 components. Below is a chart of the new sector courtesy of WSJ.
4. FOMC Sept Meeting — the Federal Reserve kept interest rates unchanged, but Chairwoman Janet Yellen said one increase is “appropriate” this year barring any major new risks to the economy. Janet Yellen gave a fairly strong indication that a hike will happen before 2016 is over. She said the labor market is strengthening and “risks to the outlook have become roughly balanced.” The FOMC has two more meetings — in November, shortly before the presidential election, and December, where Yellen gives her final post-meeting news conference of the year.
5. AAII sentiment survey — according to this week’s sentiment survey, bullish sentiment fell to 24.83% down from 27.94%. That’s the lowest weekly reading since late June, the 47th straight week that bullish sentiment was below 40%, and the 81st time in the last 82 weeks that we have seen sub-40% readings. Charts below courtesy of BIG.
Bearish sentiment also increased from 35.92% up to 38.28%. This is the first week that bearish sentiment has been higher than both bullish and neutral sentiment as well as the highest weekly reading since the February market lows.
6. Leon Cooperman, legendary trader, Indicted by the SEC on insider trading charges –Billionaire investor Leon Cooperman said he will fight the SEC’s insider trading charges against him after the agency accused his hedge fund, Omega Advisors, of trading Atlas Pipeline Partners (now part of NGLS) on private information six years ago.
The week ahead — Economic data from Econoday.com:
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