Fourth quarter 2018 Gross Domestic Product growth came in at an annualized rate of 2.6%, far lower than a robust third quarter; market and trade uncertainty along with a government shutdown and lower retail sales were all headwinds to the reading. President Trump cut his summit with the North Korean leader early after some key points behind sanctions and denuclearization were not seen eye to eye. U.S. trade representative Lighthizer mentioned it was too early to predict an outcome of trade talks, and the U.S. would need to maintain the threat of tariffs on China even if a deal is struck.

U.S. large company stocks continued their stretch of weekly climbs despite mixed geo-political news and economic data. Small company stocks did not gain along with large counterparts, but they remain on track for a large advance in 2019. International developed country stocks moved ahead of U.S. equities for the week and emerging markets were mixed based on rising tensions between India and Pakistan, less than expected contraction in manufacturing from China and an increase in the country’s weighting to a market index. Treasury yields rose putting stress on fixed income investments and other assets closely tied to rate movements.

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