AAM Weekly Market Wrap – December 30, 2012

Weekly Market Wrap:  Stocks sunk this week despite positive housing data as a tumble over the fiscal cliff now seems likely.


For The Week

  • The S&P 500 Index dropped 1.94% to 1,402.43
  • Oil jumped 2.32% to $90.80
  • Gold added 0.12% to $1,657.08
  • The US Dollar gained 0.09% to $79.68 against other major world currencies.

Year-To-Date for the major indexes:


  • The S&P index +11.52%
  • The Dow Jones Index +5.90%
  • The NASDAQ Index +13.63%
  • The Russell 2000 Small cap Index +12.31%
  • EAFE International Index +13.68%
  • 10 Year Treasury Yield at 1.71%
  • 30 Year Treasury Yield at 2.88%
  • WTI Crude Oil Index -8.30%
  • Bloomberg Gold Index +5.95%
  • The Dollar Index -0.70% against other major world currencies



Monday the S&P 500 lost 3 points on light volume as another day went by with no fiscal cliff deal.

Tuesday markets were closed – Merry Christmas!

Wednesday stocks dropped 7 points on light volume as holiday retail sales disappointed, mid-Atlantic manufacturing missed, housing prices rose and Middle-East tensions caused oil prices to rise.

Thursday stocks slipped another 2 points on light volume consumer confidence fell, jobless claims fell, new home sales rose to a 2-year high and news of a Sunday night session of congress rallies equities off session lows.

Friday stocks dropped 16 points on light volume as Chicago manufacturing beat, pending home sales beat and still no fiscal cliff deal.


Takeaways from this week:

  • Another week passes with no deal.  It looks like we will be taking a ride over this cliff unless something dramatic happens on Monday.  Since all of these issues can still be settled in January I do not expect the market to tumble too much on a holiday shortened Monday of trading or remainder of the week either.  At some point though the market will get tired of waiting and a some rough days could be ahead.
  • Home data continued to improve helping to keep some optimism in the markets and falling jobless claims also helped.


Mortgage rates were slightly higher this week.  The national averages as reported by Bloomberg indicate a 15-year rate of 2.78% and a 30-year rate of 3.38%. These rates are as of 12/28/2012 and may include points.


What to watch for on the economic calendar next week:

Monday – Dallas Manufacturing

Tuesday – No data – Happy New Year everyone!!

Wednesday – Motor Vehicle Sales / ISM Manufacturing / Construction Spending / FOMC Minutes

Thursday – Jobless Claims / ADP Employment Report

Friday – December Employment Report / Factory Orders / ISM Non-Manufacturing



Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC
December 30, 2012

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