January 15, 2011
Weekly Market Wrap: Stocks continued to trend higher the second week into the new year. The S&P 500 finished the week up 1.7% to 1,293. Oil jumped another 3.5% to $91.54 per barrel. Gold ended the week about 1% lower at $1,361 per oz and the dollar finished the week down 2.5% against other major world currencies at $79.10.
In 2010 the major indexes finished at: The S&P index +12.8%, The Dow Jones Index +11%, The NASDAQ + 16.9%, The Russell 2000 Small cap Index + 25.3%, EAFE International +4.9%. In the Bond market the 10 year treasury wrapped up the year yielding 3.29% and the 30 year yielding 4.33%
Monday started the week with the S&P 500 dropping two points as a problem in the Alaskan oil pipeline caused oil prices to rise and news from overseas added to the pressure on the market. On Tuesday the market gain 5 points as Euro worries eased and earnings season kicked off with positive news. On Wednesday the market surged 11 points as financials led the way with positive news and the feds Beige Book indicated an expansion of economic activity. Thursday the S&P 500 gave back 2 points on news that jobless claims and inflation were higher than expected but the trade deficit narrowed. On Friday the marketed jumped up another 9 points despite disappointing retail sales numbers, lower than expected consumer sentiment and tightening economic policy news from China and India.
More mostly positive economic news and some good earnings news sent the market higher again this week. The S&P 500 is now up almost 3% in the first two weeks of 2011. Now that earnings season is moving into high gear we will see how the improving US economy is impacting bottom lines.
Mortgage rates slid a little this week. The Schwab Bank 15-year rate is now at 4.20% and the 30-year rate is at 4.83%. These rates are as of 01/14/2011 and assume no points, no origination fee and a $250,000 mortgage.
The Week at AAM (to highlight what I do for clients and how I am different than most advisors):
Some of the highlights of my last week include:
- Met with a fellow chamber member who can help me save on my electric bill and go green by replacing my current lighting with high efficient lighting.
- Reviewed with a client who is in the construction business and has a tough couple of years but is now getting busy and things are looking up!
- Met with a new prospect and was hired to begin the planning process!
- Met some new local business owners through a chamber luncheon and Facebook 101 class.
- Helped a client save more by putting their new payroll tax deduction into their Roth IRAs.
- Had a meeting with a mortgage and real estate investment professional to bring more options to my existing clients.
- Helped a couple of clients prepare for their upcoming retirement later this year.
I hope you had a great week as well. Please let me know if there is ever anything I can do for you or if something has changed in your financial situation to warrant a meeting or a change of investment policy.
Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC