Weekly Market Wrap: Stocks halted a two-week drop and added 0.60%
to close at 1,378.53. Gold moved higher
as well adding 1.55% to $1,642.19. Oil
slipped 0.58% to close at $103.05. The
dollar was lower against other major world currencies falling 0.88% to $79.19.
Year-To-Date for the major indexes:
- The S&P index +9.62%
- The Dow Jones Index +6.64%
- The NASDAQ Index +15.17%
- The Russell 2000 Small cap Index +8.52%
- EAFE International Index +6.98%
The 10 year treasury is currently yielding 1.97% and the 30 year is yielding 3.13%. Yields
were lower for the week and are higher for the year.
Monday the S&P 500 index slipped 1 point on moderate volume
as US retail sales beat expectations but N manufacturing and homebuilder
sentiment missed expectations. Overseas
there was stronger confidence that China will engineer a soft landing for their
Tuesday stocks jumped 21 points on moderate volume as positive
earnings reports pushed stocks higher.
Housing starts were lower for March but new building permits beat
expectations indicating more activity in the coming months. Industrial production was flat in the
US. Overseas German investor confidence
hit a 2-year high and the Spain bond auction went well.
Wednesday stocks lost 6 points on moderate volume as data
out of Spain showed that Spain banks may hold significant bad debt. In the US mortgage applications were up.
Thursday the index dropped 8 points on moderate volume as March
existing home sales missed expectations, jobless claims were up, regional
manufacturing missed expectations but the leading economic indicators rose for
the sixth straight month.
Friday stocks bounced back 2 points on moderate volume as corporate
earnings news pushed stocks higher and German business confidence rose.
Stocks climbed this week but continue to be
stuck under the 1,400 level for the S&P index. So far corporate earnings for the 1st
quarter have been mixed. Economic data
has shown a slight slow-down in gains but are mostly still making gains. Leading economic indicators continued to rise
giving hope that this recovery will continue into the summer months.
The stock rally has paused and is
looking for a direction. We are
currently trading 2.7% below the recent high of 1,417 on 3/26. Based on the gains made so far this year a
pause and a pull-back are certainly normal.
Mortgage rates trended a little lower this
week. The Schwab Bank 15-year rate is at
3.5% and the 30-year rate is at 4.25%. These rates are as of 4/20/2012 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 – No Major Releases
Tuesday – New Home Sales / Home Prices / Consumer Confidence
Wednesday – Durable Goods Orders / FOMC Meeting and Forecasts
Thursday – Weekly Jobless Claims / Pending Home Sales
Friday – 1st Quarter GDP / Employment Costs / Consumer Sentiment
Ronald J. VanSurksum,
Advanced Asset Management, LLC
April 23, 2012