Weekly Market Wrap: Stocks suffered their worst week since October
2008 as the Fed’s policy meeting and strategy could not ease investor’s fears
regarding European debt and global growth prospects. The S&P 500 index dropped 6.54% to
1,136. Commodities also suffered major
losses this week. Gold lost over 9% to
close at $1,643 and Oil lost 8.69% to $80.27.
The dollar was higher against other major world currencies to $78.26 up
2%.
2008 as the Fed’s policy meeting and strategy could not ease investor’s fears
regarding European debt and global growth prospects. The S&P 500 index dropped 6.54% to
1,136. Commodities also suffered major
losses this week. Gold lost over 9% to
close at $1,643 and Oil lost 8.69% to $80.27.
The dollar was higher against other major world currencies to $78.26 up
2%.
Year-To-Date for the major indexes: The S&P index
-9.64%, The Dow Jones Index -6.96, The NASDAQ -6.39%, The Russell 2000 Small cap
Index -16.74%, EAFE International -19.29%.
The 10 year treasury is currently yielding 1.81% and the 30 year is yielding
2.87%. Both yields are lower for the week
and the year.
-9.64%, The Dow Jones Index -6.96, The NASDAQ -6.39%, The Russell 2000 Small cap
Index -16.74%, EAFE International -19.29%.
The 10 year treasury is currently yielding 1.81% and the 30 year is yielding
2.87%. Both yields are lower for the week
and the year.
On Monday the S&P 500 index rallied off early lows to
drop 12 points on moderate volume as the Greek debt crisis continued, President
Obama unveiled a new tax plan on the wealthy and home builder sentiment dropped.
drop 12 points on moderate volume as the Greek debt crisis continued, President
Obama unveiled a new tax plan on the wealthy and home builder sentiment dropped.
Tuesday the index lost another 2 points on moderate volume
as Greek debt concerns eased but Italy’s debt was downgraded and global growth
prospects were lowered once again.
as Greek debt concerns eased but Italy’s debt was downgraded and global growth
prospects were lowered once again.
Wednesday the market slumped 35 points on heavy volume as the
Federal Reserve disappointed with their monetary policy out of the two-day
meeting and Moody’s downgraded many US banks.
On the positive side existing home sales were up as well as mortgage
applications.
Federal Reserve disappointed with their monetary policy out of the two-day
meeting and Moody’s downgraded many US banks.
On the positive side existing home sales were up as well as mortgage
applications.
Thursday stocks plummeted 37 points on heavy volume as
Europe and Asia manufacturing data showed more weakness and US weekly jobless
claims continued to hover over $400,000.
US Leading Economic indicators were better than expected.
Europe and Asia manufacturing data showed more weakness and US weekly jobless
claims continued to hover over $400,000.
US Leading Economic indicators were better than expected.
Friday the index halted its slide and added 7 points on light
volume and little economic news. Gold
dropped nearly 6%.
volume and little economic news. Gold
dropped nearly 6%.
Stocks held the lows that were established back in August and have
bounced off those levels now a few times (around 1,119). This is a good sign if you chart the market
looking for buying points. As a
long-term buy, hold and rebalance guy I do not trade on the charts but I do like
to see this type of pattern.
bounced off those levels now a few times (around 1,119). This is a good sign if you chart the market
looking for buying points. As a
long-term buy, hold and rebalance guy I do not trade on the charts but I do like
to see this type of pattern.
The markets gave a big thumbs down to recent fed policy this week. What the markets continue to need is some
type of stability and a clear picture of what the future tax rates and
government policies will be. No more
2-year fixes of the income tax and the estate tax. No more short-term payroll tax cuts. We need some serious change in fiscal policy. A stabilized Europe would help too!
type of stability and a clear picture of what the future tax rates and
government policies will be. No more
2-year fixes of the income tax and the estate tax. No more short-term payroll tax cuts. We need some serious change in fiscal policy. A stabilized Europe would help too!
Mortgage rates lower higher this week. The Schwab Bank 15-year rate is now at 3.375%
and the 30-year rate is at 4.21%. These rates are as of 09/23/2011 and assume
no points, no origination fee and a $250,000 conforming rate mortgage.
and the 30-year rate is at 4.21%. These rates are as of 09/23/2011 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 – New Home Sales
Tuesday – Consumer Confidence / CS Home Price Index
Wednesday – Durable Goods Orders
Thursday –Weekly Jobless Claims / GDP / Pending Home Sales
Friday – Personal Income and Outlays / Consumer Sentiment
Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC
September 26, 2011
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