Weekly Market Wrap: Stocks end the week with gains on positive US earnings and better-than-expected economic data out of China.
For The Week
- The S&P 500 gained 1.62% to 2080.73
- Oil added 1.61% to $40.36
- Gold slipped 0.48% to $1,234.04
- The US Dollar rose 0.50% to $94.69 against other major world currencies.
2016 Year-To Date for the major indexes:
- The S&P Index +1.80%
- The Dow Jones Index +2.71%
- The NASDAQ Index -1.38%
- The Russell 2000 Small Cap Index -0.44%
- EAFE International Index -0.72%
- 10 Year Treasury Yield is 1.75%, higher for the week and lower for the year
- 30 Year Treasury Yield is 2.56%, higher for the week and lower for the year
- WTI Crude Oil Index +8.96%
- Bloomberg Gold Index +16.37%
- The Dollar Index -3.97% against other major world currencies
Monday the S&P 500 lost 6 points on moderate volume with no major data released and 1Q earnings season set to begin.
Tuesday the index jumped 20 points on moderately-heavy volume as small business optimism fell and missed expectations, import prices rose more than expected and export prices were flat and matched expectations.
Wednesday the S&P index gained 21 points on heavy volume as mortgage applications surged higher on falling mortgage rates, retail sales fell and missed expectation on lower auto sales and producer prices were lower and missed expectations. Overseas China positive economic data lifted world stocks.
Thursday stocks rose less than 1 point on moderate volume as jobless claims continued lower and beat expectations while consumer prices rose but missed expectations.
Friday the index fell 2 points on moderately-heavy volume as NY manufacturing surged higher and beat expectations, industrial production fell more than expected and consumer sentiment fell and missed estimates. Overseas China GDP data beat expectations.
Takeaways from this week:
- Stocks regained momentum and have now been positive for 7 out of the last 9 weeks.
- Treasury reversed course this week and moved higher.
- Overseas stocks rose on positive data from China.
Mortgage rates were mixed for the week. The national averages as reported by Bankrate.com indicate a 15-year rate of 2.77% and a 30-year rate of 3.62%. These rates are as of 4/18/2016 and may include points.
What to watch for on the economic calendar this week:
Monday – Housing Market Index
Tuesday – Housing Starts
Wednesday –Mortgage Applications / Existing Home Sales
Thursday –Weekly Jobless Claims / FHFA Home Prices / Leading Indicators
Friday – PMI Manufacturing Flash
Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC
April 18, 2016