News-Driven Stocks, Bonds and Oil (E246)

DoubleLine Portfolio Manager Eric Dhall and Analyst Mark Kimbrough survey the market week ended Jan. 16. They observe dispersion among stock-market sectors (0:50), with Real Estate climbing on President Trump pressuring the Government Sponsored Enterprises to buy more mortgage securities in an effort to lower mortgage rates. A mixed bag also prevailed in fixed income (5:00), with Treasury yields in the belly of the curve moving out 5-6 basis points while non-traditional credit sectors still provided positive returns. Commodities (6:52) tacked on gains as crude oil responded to risks of U.S. military strikes and Iranian threats of retaliation. Interestingly, both the dollar (8:46) and gold were up on the week and year-to-date. In the week’s macro news (10:26), the December consumer price index, notes Mark Kimbrough, offered “some clues that core good inflation is moderating.” For the Jan. 19-23 week, topping the billboard will be the November print of the PCE Index, the Federal Reserve’s preferred inflation indicator.