Market Review – December 2019
EQUITY: US equities extended gains for a third straight month as the risk-on sentiment persisted throughout November. The positive news flow on trade discussions between the US and China as well as the Fed rate cut helped drive gains domestically. S&P 500 earnings season produced better than expected results with 75% of companies beating EPS estimates and 59% beating revenue estimates.
FIXED INCOME: US bond markets declined modestly during November, as the Bloomberg Barclays US Aggregate returned -0.05%. Treasury yields inched higher across the maturity spectrum. The spread between 10yr and 2yr US Treasury yields steepened to 18 basis points. The Fed appears content with current interest rate policy absent a material change in the economy.