Weekly Market Wrap: US stocks soared to new all-time highs on positive economic data and positive momentum since the election.
For The Week
- The S&P 500 jumped 3.08% to 2,259.53
- Oil fell 1.45% to $50.93
- Gold lost 0.63% to $1,168.41
- The US Dollar slipped 0.18% at $100.51 against other major world currencies.
2016 Year-To Date for the major indexes:
- The S&P Index +10.55%
- The Dow Jones Index +13.38%
- The NASDAQ Index +8.73%
- The Russell 2000 Small cap Index +22.20%
- EAFE International Index +0.00%
- 10 Year Treasury Yield is 2.47%, higher for the week and higher for the year
- 30 Year Treasury Yield is 3.16%, higher for the week and higher for the year
- WTI Crude Oil Index +37.50%
- Bloomberg Gold Index +10.18%
- The Dollar Index +1.94% against other major world currencies
Monday the S&P 500 index gained 13 points on moderately-heavy volume as PMI Services was lower but remained strong while ISM Non-Manufacturing was higher and beat reaching a one-year high.
Tuesday the index added 8 points on moderate volume as productivity rose and just missed estimates, labor costs were higher than expected while factory orders were higher and matched expectations.
Wednesday the index jumped 29 points on moderately-heavy volume as mortgage applications were mixed, purchases rose and consumer credit rose but less than expected.
Thursday the S&P 500 gained 5 points on moderately-heavy volume as jobless claims fell but missed estimates and overseas the ECB left rates unchanged and extended their bond purchases by another 9 months.
Friday the index added 13 points on moderate volume as consumer sentiment rose and beat expectations.
Takeaways from this week:
- US stocks resumed their rally extending all-time highs in all of the major markets.
- Treasury yields continued higher.
- World stocks joined the US rally.
Mortgage rates were lower on the week. The national averages as reported by Bankrate.com indicate a 15-year rate of 3.17% and a 30-year rate of 3.99%. These rates are as of 12/11/2016 and may include points.
What to watch for on the economic calendar this week:
Monday – No major data
Tuesday – Small Business Optimism / Import and Export Prices
Wednesday –Mortgage applications / Producer Prices / Retail Sales / Industrial Production / FOMC Meeting Announcement
Thursday – Weekly Jobless Claims / Consumer Prices / Housing Market Index / NY Manufacturing
Friday – Housing Starts
Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC
December 11, 2016