Weekly Market Wrap: Stocks plummeted last week as US and Chinese relations were strained after a possible 90-day truce of additional tariffs when a Chinese executive was arrested in Canada for dealing with Iran.
For The Week
- The S&P 500 slumped 4.60% to 2,633.08
- Oil gained 3.30% to $52.61
- Gold rose 2.17% to $1,248.37
- The US dollar lost 0.62% at $96.63 against other major world currencies.
2018 Year-To Date for the major indexes:
- The S&P Index -1.52%
- The Dow Jones Index -1.34%
- The NASDAQ Index +0.95%
- The Russell 2000 Small cap Index -5.69%
- EAFE International Index -13.54%
- 10 Year Treasury Yield is 2.85%, lower for the week and higher for the year
- 30 Year Treasury Yield is 3.14%, higher for the week and higher for the year
- WTI Crude Oil Index -12.54%
- Bloomberg Gold Index -4.22%
- The Dollar Index +4.73% against other major world currencies
Monday the S&P 500 index jumped 30 points on heavy volume as President Trump announced an agreement with China to delay any additional tariffs for 90 days, auto sales were mixed, construction spending fell and missed estimates and ISM manufacturing rose and beat expectations.
Tuesday stocks dropped 90 points on heavy volume as China downplayed the tariff deal and no major data was released.
Wednesday the markets were closed to mourn George H. W. Bush.
Thursday stocks slipped 4 points on heavy volume as jobless claims fell but were higher than estimated, ADP jobs rose but missed expectations, factory orders fell more than expected, both ISM manufacturing and worker productivity rose and beat expectations while unit labor costs rose less than expected.
Friday stocks slumped 63 points on heavy volume as the November jobs report showed 155,000 new jobs which was less than expected, unemployed remained at 3.7% as expected, average hourly earnings rose but missed, consumer credit use rose more than expected and consumer sentiment was flat and beat estimates.
Mortgage rates fell on the week. The national averages as reported by Bankrate.com indicate a 15-year rate of 3.94% and a 30-year rate of 4.59%. These rates are as of 12/10/2018 and may include points.
What to watch for on the economic calendar this week:
Monday – No major data
Tuesday – Producer Prices / Small Business Optimism
Wednesday – Mortgage Applications / Consumer Prices
Thursday – Jobless Claims / Import and Export Prices
Friday – Retail Sales / Industrial Production and Capacity Utilization
Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC
December 10, 2018