“Contrasts” – Vista Partners Daily Market Recap 12/7/2018
Several contrasts emerged on Friday, the first being between plunging stocks and soaring oil prices after OPEC agreed to slash its output by 1.2 million barrels per day. After opening with gains, stocks quickly slid with the S&P 500 ending down 2.33% (62.87 points) and the Nasdaq falling 3.05% (219.01 points). The Dow also performed poorly, as it plummeted 2.24% to end the session.
Individually, components of the Dow were down across the board, with every company in the index reporting losses. Intel (INTC) suffered the worst losses as it saw shares decrease 4.40%. Cisco (CSCO) wasn’t too far behind with a fall of 4.03%, and Microsoft (MSFT) rounded out the bottom three as it tumble 4.00%.
Atossa Genetics (ATOS) managed to buck the trend and end the day with gains of 1.54%.
An investment in the leveraged vehicle, VelocityShares Daily 2x VIX ST ETN (TVIX) or the TVIX a many call it, produced another amazing day with a 14.70% increase on Friday!
The second contrast apparent today was between the volatility of the markets and the generally solid economic data. The jobs report for November showed that job growth was positive for the month but under economists’ predictions, and it showed that unemployment had held steady at 3.7%.
Paul Ashworth of Capital Economics had this to say about the apparent contrast. “The slightly more modest 155,000 gain…is still a solid gain that suggests economic growth is gradually slowing back toward its potential pace. There is nothing here to suggest the economy is suffering a more sudden downturn.”
Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.
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