“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:

“Be Patient – There’s the Rarest Thing On Wall Street” – Jeff Saut

1. OPEC Share of US Oil Imports At 30-year Low — FT, U.S. imports of crude oil from OPEC nations are at their lowest level in almost 30 years, underlining the impact of the shale revolution and advances in hydraulic fracturing. OPEC’s share of U.S. crude oil imports in August dropped to 40% – accounting for 2.9M bpd. The import is the lowest since May 1985.
2. U.S. House to Hold Hearing On Oil Export Ban — according to Reuters, the House subcommittee on energy and power, chaired by Representative Ed Whitfield, will hold a hearing on Dec. 11 over whether Washington should lift its nearly 40-year crude oil export ban. The debate will come into sharper focus in January, when Republicans take over leadership of both the House and Senate.
3. Carl Icahn Raises Stake In Car Rental Company Hertz — Activist investor Carl Icahn has raised his stake in Hertz (NYSE:HTZ) to 10.8% from 8.5%, now owning 49.3M shares. Icahn landed three Hertz board seats in September, and has backed the recent hiring of John Tague as CEO.
4. Q3 GDP Revised Up — the second reading of Q3 GDP was released by the Bureau of Economic Analysis was 3.8%. Wall Street economists were looking for a revision downward from 3.5% quarter-over-quarter seasonally-adjusted annual rate (SAAR) growth in the initial reading from one month ago to 3.3% QoQ SAAR.
5. OPEC Sticks To Oil Production Targets — MarketWatch, OPEC members agreed late last week to stick to the oil-producer group’s existing output target with minimal cuts in production. The Organization of the Petroleum Exporting Countries said its 12 members, who collectively pump around one-third of the world’s oil, would comply with its current production ceiling of 30 million barrels a day. That would involve a supply cut of around 300,000 barrels a day. As of last week, the enery ETF (XLF) dropped nearly 9% on the news.

The week ahead — Economic data from Econoday.com: