AAM Weekly Market Wrap – August 6, 2018

Weekly Market Wrap: The S&P 500 index rose for the 5th straight week as the FOMC held rates steady and the July employment report added less jobs than expected.

 

For The Week

  • The S&P 500 added 0.76% to 2,840.35
  • Oil slipped 0.58% to $68.49
  • Gold lost 0.79% to $1,213.73
  • The US dollar rose 0.54% at $95.17 against other major world currencies.

 

2018 Year-To Date for the major indexes:

 

  • The S&P Index +6.24%
  • The Dow Jones Index +3.01%
  • The NASDAQ Index +13.16%
  • The Russell 2000 Small cap Index +8.98%
  • EAFE International Index -3.11%
  • 10 Year Treasury Yield is 2.95%, lower for the week and higher for the year
  • 30 Year Treasury Yield is 3.09%, flat for the week and higher for the year
  • WTI Crude Oil Index +13.87%
  • Bloomberg Gold Index -6.87%
  • The Dollar Index +3.14% against other major world currencies

 

 

Monday the S&P 500 lost 16 points on moderate volume as pending home sales rose and beat expectations.

Tuesday stocks rebounded 14 points on heavy volume as employment costs rose a little less than expected, personal income rose and matched, consumer spending rose but missed, core inflation rose less than expected, Shiller home prices rose, Chicago manufacturing rose and consumer confidence rose and beat expectations.

Wednesday the index slipped 3 points on moderate-to-heavy volume as mortgage applications fell, ADP Employment rose, PMI manufacturing slipped but remains strong, ISM manufacturing, construction spending and motor vehicle sales all fell and missed estimates and the FOMC held rates steady and indicated that future projected rate hikes are still on track.

Thursday the S&P 500 gained 14 points on moderate volume as jobless claims fell and beat expectations while factory orders rose and matched estimates.

Friday stocks added 13 points on moderate volume as the July jobs report showed 157,000 new jobs added missing expectations, unemployment fell to 3.9% and matched expectations, average hourly earnings rose and beat estimates, PMI services slipped and ISM non-manufacturing fell and missed expectations.

Mortgage rates were mixed on the week.  The national averages as reported by Bankrate.com indicate a 15-year rate of 3.86% and a 30-year rate of 4.45%. These rates are as of 8/06/2018 and may include points.

 

What to watch for on the economic calendar this week:


Monday – No major data

Tuesday – Consumer Credit

Wednesday – Mortgage Applications

Thursday – Jobless Claims / Producer Prices

Friday – Consumer Prices / Core CPI

 

 

Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC

August 6, 2018

 

 

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