AAM Weekly Market Wrap – April 9, 2012

Weekly Market Wrap: Stocks stumbled out of the gates for the 2nd
quarter this week posting a small loss.
The S&P 500 index finished the week down 0.74% to 1,398.  Gold was lower as well dropping 2.3% to
$1,630.64.  Oil added 0.34% to close at
$103.44 and the Dollar was higher against other major world currencies adding
1.39% to $80.08.

Year-To-Date for the major indexes:

  • The S&P index +11.17%
  • The Dow Jones Index +6.90%
  • The NASDAQ Index +18.25%
  • The Russell 2000 Small cap Index +10.43%
  • EAFE International Index +6.62%
  • The 10 year treasury is currently yielding 2.00%
    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 gained 10 points as US
manufacturing grew faster than expected but construction spending was lower.

Tuesday stocks dropped 6 points on moderate volume as
factory orders missed and Fed minutes were released and showed little
enthusiasm for further stimulus.

Wednesday stocks slid 14 points on moderate volume as US
service activity missed expectations and Euro concerns resumed but ADP payrolls
beat expectation and mortgage applications increased.

Thursday the index fell 1 point on moderate volume as to
close out a short holiday trading week.
Jobless claims were down again and near a 4-year low and retail same-store
sales were mostly positive.

The US Stock market was closed on Friday but a report on
March jobs showed 120,000 new jobs which was much lower than expected sending
stock futures lower.

 

Stocks are off to a sluggish start in the 2nd
quarter as some economic indicators gains have slowed.  After such a great 1st quarter it
would be quite normal to see a small pull-back of about 3-5% in the S&P 500
index.  That would indicate a drop to
about 1,330 or so.  Hopefully the recent
jobs number for March was a normal fluctuation and not the beginning of a
trend.

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 4/9/2012 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 News

Tuesday – Small Business Optimism

Wednesday – Beige Book / Import and Export Prices

Thursday – Weekly Jobless Claims / Producer Price Index

Friday – Consumer Price Index / Consumer Sentiment

 

 

Ronald J. VanSurksum,
CFP®

Advanced Asset Management, LLC

April 9, 2012

 

 

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