The first full week of trading kicked off closing in the green with cyclical stocks making a comeback as the Consumer Discretionary sector rallied to gain 2.36% leading the S&P 500 Index higher. The benchmark index gained 0.7% on the day. The Treasury yield curve maintained its contorted shape with one-year yields remaining higher than two-, three- and five-year yields. Stocks continued to climb on Tuesday, marking a third straight day of gains for major indices as investors appear optimistic that the United States and China can move forward on a trade deal. Trade talks between President Trump and Chinese President Xi Jinping stretched into a third day today and while there’s not yet an agreement, major indices rose on hopes alone. The Dow gained 1.09% while the NASDAQ and S&P 500 rose 1.08% and 0.97% respectively. Ten of 11 sectors were higher on the day with the Financial sector closing lower. In the third day of trade discussions in Beijing the Wall Street Journal reported the parties had made “progress toward an agreement but (left) the thorniest issues to be resolved in higher-level talks, according to people with knowledge of the discussions.” Also, minutes from the Federal Open Market Committee December meeting showed conversations that were more dovish than the statement issued, with some governors urging patience and seeing less clarity on future hikes. Market action was somewhat muted mid-week, but was led by Energy and Technology, with Utilities and Staples lagging while the S&P 500 gained 0.45%. The government shutdown watch continues with Trump walking out of a meeting with Schumer and Pelosi late in the day. Stocks finished higher on Thursday despite the S&P 500 Index falling as much as 1% intraday. Comments from Fed President Jerome Powell suggested that the central bank was willing to adjust its pace of rate increases if economic conditions continued to deteriorate. The Dow lead major indices rising 0.51%. The S&P 500 gained 0.45%, while the NASDAQ improved 0.42%. As concerns over the government shutdown continued Friday, stocks snapped a streak of five straight days of gains. Slightly in the red, the S&P 500 lost 0.01%, the Dow fell 0.02% and the NASDAQ finished down 0.21% on the day. CPI slipped 0.1% in December with core CPI printing at 2.2% and with a drop in gas prices leading to a headline at 1.9%.