Weekly Market Wrap: Stocks suffered their largest weekly drop of 2019 despite a 0.25% Fed rate cut as additional tariffs increased China trade war fears.
For The Week
- The S&P 500 dropped 3.10% to 2,932.05
- Oil was flat at $56.20
- Gold rose 1.71% to $1,441.03
- The US dollar added 0.08% at $98.08 against other major world currencies.
2019 Year-To Date for the major indexes:
- The S&P Index +16.96%
- The Dow Jones Index +13.54%
- The NASDAQ Index +20.63%
- The Russell 2000 Small cap Index +13.73%
- EAFE International Index +8.30%
- 10 Year Treasury Yield is 1.85%, lower for the week and lower for the year
- 30 Year Treasury Yield is 2.38%, lower for the week and lower for the year
- WTI Crude Oil Index +23.76%
- Bloomberg Gold Index +12.36%
- The Dollar Index +2.06% against other major world currencies
Monday the S&P 500 index lost 5 points on moderate volume with no major data reported.
Tuesday stocks fell 8 points on moderate volume as consumer confidence rose and beat expectations, PCE prices rose and matched, pending home sales rose and beat estimates, both personal income and personal spending rose and matched while Shiller home prices rose but missed expectations.
Wednesday the S&P 500 dropped 33 points on heavy volume as mortgage applications fell, ADP Employment rose and beat estimates, Chicago manufacturing fell and missed, employment costs rose and matched expectations while the FOMC lowered rates by 0.25% as expected.
Thursday stocks fell 27 points on heavy volume as jobless claims rose and matched estimates, construction spending fell and missed while ISM Manufacturing fell and missed expectations.
Friday the markets lost 22 points on moderate volume as July payrolls fell but beat estimates, average hourly earnings rose and matched, unemployment held steady at 3.7%, factory orders rose but missed while consumer sentiment was flat and missed expectations.
Mortgage rates were mixed on the week. The national averages as reported by Bankrate.com indicate a 15-year rate of 3.20% and a 30-year rate of 3.88%. These rates are as of 08/05/2019 and may include points.
What to watch for on the economic calendar this week:
Monday – ISM Non-Manufacturing
Tuesday – No major data
Wednesday –Mortgage Applications / Consumer Credit Use
Thursday – Jobless Claims
Friday – Producer Prices
Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC
August 5, 2019