Knight Bridge Investment Consultants Limited – Last Week Roundup and Week Ahead in the Markets

HONG KONG - Nov. 11, 2018 - PRLog -- The S&P 500 fell 0.92%, or 25.82 points, as of market close, with the tech and communication services sectors leading declines. The Dow slipped 0.77%, or 201.92 points, after shedding more than 300 points at its intraday low. The tech-heavy Nasdaq slid 1.65%, or 123.98 points.

The widely-expected outcome of the midterm election was for a split Congress with the Democrats in control of the House of Representatives, and the Republicans in control of the Senate. Many anticipate that this will in turn result in a "government gridlock."

"The results of the midterm elections were largely as we expected, delivering a split Congress," Barclays said in a note to clients on Friday. "The policy implications will become clearer over the coming weeks and months, but we expect less momentum behind additional fiscal stimulus … In all, we expect the current split to lead to more of a stalemate when it comes to fiscal policy which, in turn, reinforces our conviction that US economic growth has likely peaked and should moderate over time."

Additionally, crude oil (got pummeled for the tenth straight session on Friday and fell below $60 a barrel. The commodity is firmly in a bear market – down more than 20% from its high. Oil has been under pressure this week after U.S. sanctions on Iranian oil exports kicked back in on Monday, and further supply and demand concerns weighed on prices.

Monday the bond market will be closed in observance of Veteran's Day, but the stock market will be open for a regular trading session.

The week in markets

The week will be a big week for retail earnings as earnings season slowly starts winding down.

"The majority of brick-and-mortar retailers will report results over the next two weeks. EPS for the group is expected to grow at 17.6% on the back of strong consumer demand and tax cuts," Haley Richmond, Senior Analyst at Knight Bridge Investment Consultants Limited.

No companies are scheduled to report on Monday, but the rest of the week's schedule will be as follows:

• Tuesday: Home Depot before market open and Tilray after market close
• Wednesday: Macy's before market open and Cisco after market close
• Thursday: Walmart and J.C.Penney before market open; Nordstrom, Applied Materials and Nvidia after market close
• Friday: Viacom before market open

On the economic data front, the October CPI data will be released on Wednesday. Economists are expecting that core inflation rose 2.5% over last year in October. Furthermore, initial jobless claims will be released on Thursday.

Economic calendar

• Monday: U.S. bond markets will be closed for Veterans Day.
• Tuesday: NFIB small business optimism, October (108.0 expected; 107.9 prior); Monthly budget statement, October (-$98.0B expected, $119.1B prior)
• Wednesday: MBA mortgage applications for the week ending November 9 (-4.0% prior week); Consumer price index month-on-month, October (+0.3% expected, +0.1% prior); consumer price index ex food and energy month-on-month, October (+0.2% expected; +0.1% prior); consumer price index year-on-year, October (+2.5% expected, +2.3% prior); consumer price index ex food and energy year-on-year, October (+2.2% expected, +2.2% prior); Average weekly earnings year-on-year, October (+1.1% prior); average hourly earnings year-on-year, October (+0.5% prior)
• Thursday: Empire Manufacturing, November (20.0 expected; 21.1 prior); Philadelphia Fed Business Optimism, November (20.0 expected; 22.2 prior); retail sales advance month-on-month, October (+0.6% expected; +0.1% prior); Import price index month-on-month, October (+0.1% expected, 0.5% prior); Import prices index year-on-year, October (+3.4% expected, +3.5% prior); Export price index month-on-month, October (+0.0% expected, +0.0% prior); Export price index year-on-year, October (+2.7% prior); Initial jobless claims for week ending November 10 (215K expected, 214K prior); Business inventories, September (0.3% expected, 0.5% prior)

To find out more information on the opportunities Knight Bridge Investment Consultants see's within the US markets, specifically with IPO's or other performing sectors, visit www.knightbridgeinvestment.com or contact us at info@knightbridgeinvestment.com for further information.