Weekly Market Wrap: Stocks surged forward for the 5th
straight week of 2012 added to this year’s gains. The S&P 500 Index added 2.28% to close at 1,344.90. Oil and Gold both moved lower
on the week. Oil was down 1.86% to
$97.71 and Gold finished 0.82% lower to $1,725.
The dollar was slightly higher against other major world currencies
adding 0.13% to $78.96.
Year-To-Date for the major indexes:
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The S&P index +6.94%
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The Dow Jones Index +5.28%
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The NASDAQ Index +11.54%
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The Russell 2000 Small cap Index +12.17%
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EAFE International Index +8.28%
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The 10 year treasury is currently yielding 1.95%
and the 30 year is yielding 3.15%. Yields
moved higher for the week and are higher for the year.
Monday the S&P 500 index dropped 3 points on moderate
volume as Greece has yet to reach an agreement with its creditors. Markets finished well off their lows for the
day as personal income and spending data was mixed but Dallas area
manufacturing data beat expectations.
Tuesday the market lost 1 point on moderate volume as consumer
confidence, home prices and Chicago manufacturing data all missed expectations
and employment costs rose. Portugal was
added to the Euro watch list as another possible problem area.
Wednesday stocks added 12 points on moderate volume as Auto
sales were positive, construction spending and manufacturing data beat
expectations and ADP private payrolls were up but not as much as expected. Also, strong manufacturing data out of Europe and China helped push world stocks higher.
Thursday the index added 2 points on moderate volume as jobless
claims dropped more than expected, 4Q productivity and labor costs were up and same
store sales beat expectations for January.
Bernanke’s cautious speech in front of congress kept gains muted.
Friday stocks surged 19 points on moderate volume as 243,000
jobs were added in January beating expectations. The ISM non-manufacturing report also beat
expectations and factory orders rose but fell short of expectations. Also adding to the day’s optimism, the Euro
purchase index moved into positive territory for the first time since August.

Stocks posted another good week of gains on positive news both
here in the US and overseas. The US jobs
machine may have finally kicked into gear as the gains are starting to be more
consistent and growing from month-to-month.
Manufacturing and auto sales also are growing and adding to the positive
momentum.
When the markets move like they have this year it is easy to
forget that debt problems around the world still exist and nothing has been
fixed. We need a solid plan to turn around the fiscal mess we have gotten ourselves into before we can be confident that we will hold onto these gains.
Mortgage rates were flat this week. The Schwab Bank 15-year rate is at 3.47% and
the 30-year rate is at 4.25%. These rates are as of 02/03/2012 and assume no
points, no origination fee and a $250,000 conforming rate mortgage.
What to watch for on the economic calendar next week:
Monday – No major economic data
Tuesday – Consumer Credit
Wednesday – No major economic data
Thursday – Weekly Jobless Claims
Friday – Consumer Sentiment / International Trade
Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC
February 06, 2012