Weekly Market Wrap: Stocks surged back into record territory as a potential phase 1 trade deal with China may be near and possible passage of USMCA before year end.
For The Week
- The S&P 500 added 0.73% to 3,168.80
- Oil gained 1.47% to $60.07
- Gold rose 1.10% to $1,481.20
- The US dollar slipped 0.50% at $97.19 against other major world currencies.
2019 Year-To Date for the major indexes:
- The S&P Index +26.41%
- The Dow Jones Index +20.61%
- The NASDAQ Index +31.64%
- The Russell 2000 Small cap Index +21.46%
- EAFE International Index +18.43%
- 10 Year Treasury Yield is 1.82%, lower for the week and lower for the year
- 30 Year Treasury Yield is 2.26%, lower for the week and lower for the year
- WTI Crude Oil Index +32.28%
- Bloomberg Gold Index +15.49%
- The Dollar Index +1.13% against other major world currencies
Monday the S&P 500 fell 10 points on moderate volume with no major data reported.
Tuesday stocks fell another 3 points on moderate volume as small business optimism rose, worker productivity fell more than expected while unit labor costs rose but was below expectations.
Wednesday the S&P 500 gained 9 points as mortgage applications rose, consumer prices rose more than expected and the FOMC held rates unchanged as expected.
Thursday stocks jumped 27 points on moderate volume as jobless claims rose more than expected while producer prices were flat and missed estimates.
Friday the markets added less than one point on moderate volume as import and export prices both rose while retail sales were higher but missed expectations.
Mortgage rates were mixed on the week. The national averages as reported by Bankrate.com indicate a 15-year rate of 3.18% and a 30-year rate of 3.69%. These rates are as of 12/16/2019 and may include points.
What to watch for on the economic calendar this week:
Monday – NY Manufacturing / Homebuilder Sentiment
Tuesday – Housing Starts and Building Permits / Capacity Utilization and Industrial Production
Wednesday – Mortgage Applications
Thursday – Jobless Claims / Existing Home Sales / Leading Indicators
Friday – 3Q GDP – Final Estimate / PCE Prices / Personal Income and Spending / Consumer Sentiment
Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC
December 16, 2019