AAM Weekly Market Wrap – April 16, 2012

Weekly Market Wrap: Stocks continue to slide for the second
consecutive week based mostly on global economic growth concerns out of Europe
and China.  The S&P 500 index lost 2%
on the week to finish at 1,370.  Oil
ended down as well dropping 0.58% to $102.84.
Gold managed to add 1.55% to close at $1,656.  The Dollar ended the week lower against other
major world currencies slipping 0.24% to $79.89.

Year-To-Date for the major indexes:

  • The S&P index +8.96%
  • The Dow Jones Index +5.17%
  • The NASDAQ Index +15.59%
  • The Russell 2000 Small cap Index +7.47%
  • EAFE International Index +5.34%
  • The 10 year treasury is currently yielding 2.00%
    and the 30 year is yielding 3.15%.  Yields
    were higher for the week and are higher for the year.

 

Monday the S&P 500 index dropped 16 points on light volume
as reaction to Friday’s disappointing labor report for March sent stock sharply
lower at the open of the US markets.

Tuesday stocks slumped another 24 points on heavy volume as continued
global economic concerns weighed on the US market.  Small business optimism declined but
wholesale inventories beat expectations.

Wednesday stocks rebounded 10 points on moderate volume as Spanish
and Italian bond yields declined showing a little optimism for Europe.  In the US import prices were higher than
expected, mortgage applications fell and the Fed Beige Book showed continued
moderate expansion for the US economy.

Thursday the index added 19 points on moderate volume as first
quarter earnings season kicked into high gear with mixed results, producer
prices were mostly flat, jobless claims jumped to their highest level since
January and the US trade deficit narrowed.

Friday stocks sank 17 points on moderate volume as China’s
GDP missed projections gaining 8.1% which is its weakest reading in 3 years and
the University of Michigan consumer confidence reading was lower.

 

 

 

Stocks continue to trend lower in the second
quarter as mixed US earning and global growth worries carried throughout the
week.  The week kicked off trading on the
March jobs number which was much lower than expected and could not regain any
traction as China’s GDP slowed.

At this point I am not too worried
about China’s slow down and I am hopeful that the March jobs report was more of
an anomaly rather than a new trend.
Europe continues to face its troubles but has been pretty quiet so far
this year.  The US has yet to really
address its debt problems but I am hopeful that as the election season ramps up
it will get the priority it deserves.

Mortgage rates were flat this week.  The Schwab Bank 15-year rate is at 3.625% and
the 30-year rate is at 4.25%. These rates are as of 4/13/2012 and assume a $250,000
conforming rate mortgage and may include up to 0.5% points.

 

What to watch for on the economic calendar next week:

Monday –Retail sales / Empire State
Manufacturing / Business Inventories / Housing Market Index

Tuesday – Housing Starts / Industrial Production

Wednesday – No Major Releases

Thursday – Weekly Jobless Claims / Existing Home Sales / Philly Fed Survey

Friday – No Major Releases

 

 

Ronald J. VanSurksum,
CFP®

Advanced Asset Management, LLC

April 16, 2012

 

 

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