Weekly Market Wrap: Stocks rebounded once again and continued 2011’s
roller coaster theme making gains on positive housing and jobs news.  The S&P 500 index finished the week 3.7%
higher to move into positive territory for the year and to close at 1,265.  Oil surged and Gold made slight gains.  Oil closed at $99.80 up over 6% and gold
closed at $1,607.05 up 0.6%.  The dollar
was lower against other major world currencies at $80.01 down 0.21%.

Year-To-Date for the major indexes: The S&P index
+0.61%, The Dow Jones Index +6.19, The NASDAQ -1.29%, The Russell 2000 Small cap
Index -4.63, EAFE International -15.48%.
The 10 year treasury is currently yielding 2.03% and the 30 year is
yielding 3.06%.  Yields are higher on the
week and lower for the year.

On Monday the S&P 500 index lost 14 points on moderate volume
as ECB comments indicated no additional action to stable the Euro-zone and Kim
Jong Il’s passing created some further instability in Asia.  In the US homebuilders indicate they are
becoming more confident.

Tuesday the index surged 36 points on moderate volume as German
business and consumer confidence was up and Spain had a positive debt
auction.  Again good news in the US on
the housing market as housing starts and building permits beat expectations.

Wednesday the index added 2 points on moderate volume as November
existing home sales beat expectations but strong demand in Europe for the ECB
bank loans created concern regarding the stability of European banks.

Thursday the market added 10 points on moderate volume as
weekly jobless claims dropped to a 2-year low, consumer sentiment and leading
indicators rose but 3^rd quarter GDP was revised lower.

Friday the market added 11 points on low volume as the
markets moved into the Christmas holiday with a solid week of gains sending the
S&P 500 back into positive territory for 2011.  In economic news new home sales met
expectations, personal income was up but less than expected and durable goods
orders showed weakness.

 

 

 

 

The markets rebounded nicely this week on positive housing
news and jobless claims pushed the S&P 500 index into positive territory on
the year and fueled a year-end rally in stocks.

Europe continues to be a mixed bag of news depending on the
sector or the region you are analyzing.
Asia added another wild card to the mix with the passing of Kim Jong Il
and the passing of power to his 28 year-old son Kim Jong Un.

Mortgage rates were higher this week.  The Schwab Bank 15-year rate is now at 3.375%
and the 30-year rate is at 4.125%. These rates are as of 12/23/2011 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 – Markets Closed – MERRY CHRISTMAS!

Tuesday – Consumer Confidence / CS Home Price Index

Wednesday – No Major News

Thursday – Weekly Jobless Claims / Pending Home Sales

Friday – No Major News

 

 

Ronald J. VanSurksum, CFP®

Advanced Asset Management, LLC

December 26 2011