Week of Mar 31 2017 Weekly Recap & The Week Ahead
“When I get hurt in the market, I get the hell out. It doesn’t matter at all where the market is trading. I just get out, because I believe that once you’re hurt in the market, your decisions are going to be far less objective than they are when you’re doing well… If you stick around when the market is severely against you, sooner or later they are going to carry you out.” – Randy McKay
1. OPEC and Non-OPEC Oil Producers Meeting in Kuwait Agreed to Evaluate Six More Months of Oil Output Cuts — a joint committee of ministers from OPEC and non-OPEC oil producers has agreed to evaluate whether a global pact to limit supplies should be extended by six months. At a meeting in Kuwait, the committee requested a technical group and the OPEC Secretariat “review the oil market conditions and revert… in April, 2017 regarding the extension of the voluntary production adjustments.”
2. Comcast to Expand Streaming Service — Comcast is planning to rebrand and expand a streaming video option for broadband subscribers who do not want to pay for a traditional cable package. The service, dubbed Xfinity Instant TV, will be priced as low as $15 a month to roughly $40 a month, sources told Reuters. Comcast (NASDAQ:CMCSA) will include major broadcast networks as well as add-on options.
3. Brexit Process Set to Begin — British’s PM Theresa May invoked Article 50 of the Lisbon Treaty with a hand-delivered letter to EU President Donald Tusk. That process set the stage for two years of landmark negotiations, including trade, immigration and the future of Britain’s $2.6T economy. While the Brexit decision last summer came as a surprise and rocked markets, stocks quickly recovered and have since notched record highs.
4. Trump “Border Wall” Extend the Bids Process Until April 4, 2017 — companies looking to build President Trump’s border wall will now have until April 4 to submit offers after the DHS extended deadline. Almost 700 businesses have already placed bids, including U.S. Concrete (NASDAQ:USCR), KBR, Martin Marietta (NYSE:MLM) and Fluor (NYSE:FLR). The wall must be at least 18 feet high, can’t be climbed, prevents digging below it for at least six feet and has a U.S.-facing side that is “aesthetically pleasing.”
5. BlackRock Stock-Picking Goes High-Tech — the evolution of stock picking has taken a toll on jobs and fees at BlackRock (NYSE:BLK) after the world’s biggest money manager said it will increasingly rely on data-mining technology to make investment decisions. Over forty staff will be laid off, including some portfolio managers. The revamp marks BlackRock’s biggest attempt to rejuvenate its actively managed equities business as investors shift to ETFs.
6. U.S. 4Q GDP Revised Upward to 2.1% on Consumption — the U.S. economy grew 2.1% in the fourth quarter versus estimated for 2%. The data reinforce the underlying story of the U.S. economy: the seven-year expansion continues to be led by consumers, who are cushioned by a firm labor market and rising confidence. At the same time, rising corporate profits could provide continued momentum for hiring and support further capital investment.
The week ahead — Economic data from Econoday.com:
Tags: OPEC