US Stock Market Overview – Stocks Close at Fresh Records, Energy Bucks the TrendThe Russell 200 bucked the trend
US Stock prices were higher on Monday and continued their upward trend closing at fresh all-time highs. Sectors were mixed, led higher by communications, the energy was the worst-performing sectors led lower by dropping crude oil and natural gas shares. Stocks were buoyed by a statement from Investment Bank Goldman Sachs who believes the U.S. economy is poised to rebound in 2020 and cyclical stocks could see the most benefit. Coty announced on Monday that it planned to purchase a controlling interest in Kylie Jenner’s cosmetic company paying $600 million.
Goldman Sees Economic Rebound
Investment Bank Goldman Sachs sees a rebound in US economic growth in 2020 which should help lift economically sensitive shares. Cyclical stocks, those typically tied to economic growth, have led the record-setting rally in US shares. The bank predicts that the trend will persist on the back of a rebound in the U.S. economy, where cyclical will outpace their defensive counterparts.
Over the past 2-months, the best performing sector in the S&P 500 index was Industrials, which have benefited from a perceived trade deal between the US and China. Cyclicals were the 3-best performing sectors over the past 60-days up nearly 12%. The worst performing sector over the same period has been Utilities up slightly less than 2%. Defensive sectors like Utilities and Real-estate have lagged the broader markets.
Fed on Hold
Fed Chair Jerome Powell met with President Donald Trump and Treasury Secretary Steve Mnuchin at the White House on Monday. In congressional testimony last week, Fed Chairman Jerome Powell said the current policy is “likely to remain appropriate” as long as growth continues and inflation trends to 2%. Trump said following the meeting that the conversations were cordial.
Coty To Buy Kylie Cosmetics
Coty Inc. announced that it is paying $600 million for a controlling stake in Kylie Jenner’s cosmetics company. The fragrance and cosmetics company said it plans to buy 51% of Kylie Cosmetics, valuing it at $1.2 billion.