Weekly Market Wrap: Stocks continued higher this week as the US Senate passed their version of the tax bill which moved to reconciliation and the November employment report beat expectations.
For The Week
- The S&P 500 added 0.35% to 2,651.50
- Oil fell 1.71% to $57.36
- Gold lost 2.55% to $1,247.93
- The US dollar gained 1.10% at $93.90 against other major world currencies.
2017 Year-To Date for the major indexes:
- The S&P Index +18.43%
- The Dow Jones Index +23.11%
- The NASDAQ Index +27.07%
- The Russell 2000 Small cap Index +12.13%
- EAFE International Index +20.98%
- 10 Year Treasury Yield is 2.38%, higher for the week and lower for the year
- 30 Year Treasury Yield is 2.77%, higher for the week and lower for the year
- WTI Crude Oil Index +6.78%
- Bloomberg Gold Index +8.29%
- The Dollar Index -8.21% against other major world currencies
Monday the S&P 500 index slipped 3 points on heavy volume as factory orders fell and missed estimates. The Senate passed its version of tax reform.
Tuesday the markets dropped 10 points on moderate volume as both PMI services and ISM Non-Manufacturing fell and missed expectations but remained strong. The tax reform bill moved into reconciliation.
Wednesday the index lost less than 1 point on moderate volume as mortgage applications were higher, ADP Employment fell and beat estimates, productivity rose a little less than expected and labor costs fell and missed estimates.
Thursday the S&P 500 gained 8 points on moderate volume as jobless claims fell but beat expectations and consumer credit use rose and beat estimates.
Friday the index jumped 15 points on moderate volume as the November jobs report added 228,000 jobs and beat expectations, unemployment held steady at 4.1% and matched expectations, the labor participation rate remained at 62.7%, average hourly earnings rose a less than expected 0.2% and consumer sentiment fell and missed estimates. Overseas positive data out of China and Japan help lift global markets.
Mortgage rates were lower on the week. The national averages as reported by Bankrate.com indicate a 15-year rate of 3.14% and a 30-year rate of 3.80%. These rates are as of 12/11/2017 and may include points.
What to watch for on the economic calendar this week:
Monday – No major data
Tuesday – Small Business Optimism / Producer Prices
Wednesday – Mortgage Applications / Consumer Prices / FOMC Meeting Announcement
Thursday – Jobless Claims / Retail Sales / Import & Export Prices /
Friday – NY Manufacturing / Industrial Production
Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC
December 11, 2017