AAM Weekly Market Wrap – April 30, 2012

Weekly Market Wrap: Stocks extended their gains for the second
straight week as housing data and corporate earnings pushed stocks higher.  The S&P 500 index added 1.8% to close at
1,403.  Oil added 1.6% to $104.70 and
Gold moved higher as well increasing 1.24% to $1,662.51.  The Dollar dropped 0.52% against other major
world currencies to close at $78.78.

Year-To-Date for the major indexes:

  • The S&P index +11.59%
  • The Dow Jones Index +8.27%
  • The NASDAQ Index +17.81%
  • The Russell 2000 Small cap Index +11.37%
  • EAFE International Index +7.12%
  • The 10 year treasury is currently yielding 1.94%
    and the 30 year is yielding 3.12%.  Yields
    were slightly lower for the week and are higher for the year.

 

Monday the S&P 500 index dropped 12 points on moderate volume
as Euro-zone business decelerated and Chinese manufacturing slowed.

Tuesday stocks rebounded 5 points on moderate volume as new
home sales beat expectations, home prices showed signs of stabilizing,
mid-Atlantic manufacturing jumped and consumer sentiment moved slightly lower.

Wednesday stocks surged 19 points on moderate volume as the
Federal Reserve announced revised growth estimates slightly higher and future
unemployment slightly lower with a better chance of a rate hike before
2014.  March durable goods orders missed
expectations and mortgage apps declined.

Thursday the index added 9 points on moderate volume as jobless
claims were higher than expected, regional manufacturing slowed, but pending
home sales beat expectations.

Friday stocks added another 3 points on moderate volume as 1st
quarter GDP was lower than expected, S&P cut Spain’s credit rating, Japan
data disappointed but corporate earnings continued mostly positive.

Stocks began the week trending lower on news overseas
but quickly turned positive as US home data and corporate earnings pushed
stocks higher.  The Fed reinforced the
positive bias by revising projections higher, although only slightly
higher.

Much of the economic news was mixed
this week with GDP and durable goods orders missing expectations and home data
beating projections.

Overseas news continues to pressure
markets but not enough to offset positive US earnings announcements.

Mortgage rates were flat 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 4/27/2012 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 – Personal Income and Outlays /
Chicago PMI / Dallas Fed Manufacturing

Tuesday – ISM Manufacturing / Motor Vehicle Sales / Construction Spending

Wednesday – ADP Employment / Factory Orders

Thursday – Weekly Jobless Claims / Productivity and Costs / ISM
non-Manufacturing

Friday – Employment Situation

 

 

Ronald J. VanSurksum,
CFP®

Advanced Asset Management, LLC

April 30, 2012

 

 

 

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