AAM Weekly Market Wrap – February 5, 2018

Weekly Market Wrap: Stocks dropped this week as interest rates continued higher and despite positive economic data.

 

For The Week

  • The S&P 500 fell 3.85% to 2,762.13
  • Oil slipped 1.04% to $65.45
  • Gold dipped 1.34% to $1,331.34
  • The US dollar gained 0.07% at $89.18 against other major world currencies.

 

2018 Year-To Date for the major indexes:

 

  • The S&P Index +3.31%
  • The Dow Jones Index +3.24%
  • The NASDAQ Index +4.89%
  • The Russell 2000 Small cap Index +0.77%
  • EAFE International Index +3.19%
  • 10 Year Treasury Yield is 2.84%, higher for the week and higher for the year
  • 30 Year Treasury Yield is 3.08%, flat for the week and higher for the year
  • WTI Crude Oil Index +8.81%
  • Bloomberg Gold Index +2.15%
  • The Dollar Index -3.35% against other major world currencies

 

 

Monday the S&P 500 fell 19 points on moderate volume as personal income rose and beat expectations while consumer spending fell and missed estimates.

Tuesday stocks dropped 31 points on moderately-heavy volume as Shiller Home Prices rose and beat expectations while consumer confidence rose and beat estimates.

Wednesday the index gained 1 point on heavy volume as mortgage applications fell, ADP jobs posted better gains than expected, employment costs matched and pending home sales beat expectations.

Thursday the S&P 500 slipped 2 points on moderately-heavy  volume as jobless claims fell more than expected, vehicle sales fell and missed, productivity fell and missed while as labor costs rose more than expected, PMI manufacturing rose and matched expectations, ISM manufacturing fell and missed estimates while construction spending rose and beat estimates.

Friday the index plummeted 60 points on heavy volume as the January jobs report came in better than expected at 200,000, the unemployment rate and the participation rates both held steady, hourly earnings rose and matched expectations, consumer sentiment rose and beat while factory orders rose and matched estimates.

Mortgage rates continued higher on the week.  The national averages as reported by Bankrate.com indicate a 15-year rate of 3.63% and a 30-year rate of 4.30%. These rates are as of 2/5/2018 and may include points.

 

What to watch for on the economic calendar this week:


Monday – PMI Services / ISM Non-Manufacturing

Tuesday – No Major Data

Wednesday – Mortgage Applications / Consumer Credit

Thursday – Jobless Claims

Friday – No Major Data

 

 

Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC

February 05, 2018

 

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