Oil prices ended the short Thanksgiving week with a big slump after President Trump expressed support for Saudi Arabia regarding the murder of journalist Jamal Khashoggi. Down almost 13% year to date, low oil prices are a double-edged sword as it helps consumers but also may harm U.S. shale producers that are a growing share of the oil markets. Heavy rains were welcome in California and have helped firefighters achieve 95% containment of the deadly Camp Fire as of Friday. International automakers Nissan, Mitsubishi Motors, and Renault were rocked by the arrest and ousting of Nissan’s CEO Carlos Ghosn for misrepresenting his compensation.
The short week was brutal for equities which started the week down on news that Apple was reducing its iPhone production based on lower demand expectations. This news reverberated in the stocks of its suppliers and the technology sector as a whole. U.S. large cap stocks ended the week down nearly 4% and now sit at a loss for the year. International stocks fell to a lesser extent but were already facing a sizable loss coming into the third quarter. Bond prices were stable as the market turmoil may sway the Federal Reserve’s plans to continue to with rate hikes after December. The oil price declines hit commodities, now down almost 7% year-to-date.
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