Weekly Market Wrap: Stocks were flat this week on positive manufacturing data as oil and the US dollar rose.
For The Week
- The S&P 500 slipped 0.06% to 2,258.07
- Oil gained 1.90% to $51.90
- Gold lost 2.98% to $1,133.62
- The US Dollar jumped 2.38% at $102.90 against other major world currencies.
2016 Year-To Date for the major indexes:
- The S&P Index +10.48%
- The Dow Jones Index +13.88%
- The NASDAQ Index +8.58%
- The Russell 2000 Small cap Index +20.10%
- EAFE International Index -1.00%
- 10 Year Treasury Yield is 2.60%, higher for the week and higher for the year
- 30 Year Treasury Yield is 3.19%, higher for the week and higher for the year
- WTI Crude Oil Index +40.12%
- Bloomberg Gold Index +6.90%
- The Dollar Index +4.36% against other major world currencies
Monday the S&P 500 index lost 3 points on heavy volume as no major data was reported, oil rose on OPEC’s agreement to cut oil production.
Tuesday the index gained 15 points on moderate volume as small business optimism rose and beat expectations while import and export prices both fell. Overseas China released positive economic data.
Wednesday the index fell 18 points on heavy volume as mortgage applications fell, producer prices rose more than expected, retail sales rose but less than expected, industrial production fell more than expected and the Fed raised rates 0.25% as expected but hinted at 3 possible rate hikes in 2017.
Thursday the S&P 500 gained 9 points on heavy volume as jobless claims fell a little more than expected, consumer prices rose and matched, both NY and Philly manufacturing rose and beat expectations, PMI manufacturing flash rose and the housing market index rose and beat expectations with homebuilder sentiment reaching its highest point since July 2005.
Friday the index fell 4 points on heavy volume as both housing starts and building permits fell and missed expectations.
Takeaways from this week:
- US stocks took a break from the recent rally and consolidated gains.
- Treasury yields continued higher.
- World stocks moved lower despite upbeat Chinese data.
Mortgage rates were higher on the week. The national averages as reported by Bankrate.com indicate a 15-year rate of 3.21% and a 30-year rate of 4.07%. These rates are as of 12/18/2016 and may include points.
What to watch for on the economic calendar this week:
Monday – PMI Services Flash
Tuesday – No major data
Wednesday –Mortgage applications / Existing Home Sales
Thursday – Weekly Jobless Claims / Durable Goods Orders / GDP / Corporate Profits / FHFA Home Prices / Personal Income and Outlays / Leading Indicators
Friday – New Home Sales / Consumer Sentiment
Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC
December 18, 2016