Weekly Market Wrap: Stocks see-sawed this week and ended higher as political tensions in Europe and continued tariff talk were offset by positive economic data.
For The Week
- The S&P 500 gained 0.49% to 2,734.62
- Oil dropped 3.05% to $65.81
- Gold slipped 0.49% to $1,293.67
- The US dollar added 0.03% at $94.22 against other major world currencies.
2018 Year-To Date for the major indexes:
- The S&P Index +2.28%
- The Dow Jones Index -0.34%
- The NASDAQ Index +9.43%
- The Russell 2000 Small cap Index +7.32%
- EAFE International Index -0.47%
- 10 Year Treasury Yield is 2.90%, higher for the week and higher for the year
- 30 Year Treasury Yield is 3.04%, lower for the week and higher for the year
- WTI Crude Oil Index +9.41%
- Bloomberg Gold Index -0.74%
- The Dollar Index +2.11% against other major world currencies
Monday the markets were closed.
Tuesday stocks dropped 31 points on moderately-heavy volume as both Shiller home prices and consumer confidence rose but missed. Overseas political concerns out of Italy and Spain moved markets lower.
Wednesday the index rebounded 34 points on moderate volume as mortgage applications fell, ADP jobs rose but missed estimates, GDP 1st quarter estimated was revised lower to 2.2% as expected and corporate profits rose slightly in the 1st quarter.
Thursday the S&P 500 fell 19 points on heavy volume as jobless claims fell and beat estimates, personal income rose and matched, consumer spending rose and beat expectations, PCE prices rose and matched, Chicago PMI rose and beat estimates while pending home sales fell and missed expectations.
Friday stocks rose 29 points on moderate volume as motor vehicle sales were mixed with domestic sales rising, PMI manufacturing fell and missed but remains strong, ISM manufacturing rose and beat expectations, construction spending rose and beat estimates, May payrolls added a higher than expected 223,000 jobs, unemployment fell to 3.8% and beat, the labor participation rate fell more than expected to 62.7% and average hourly earnings rose more than expected adding 0.3%.
Mortgage rates were lower on the week. The national averages as reported by Bankrate.com indicate a 15-year rate of 3.85% and a 30-year rate of 4.41%. These rates are as of 6/04/2018 and may include points.
What to watch for on the economic calendar this week:
Monday – Factory Orders
Tuesday – PMI Services / ISM Non-manufacturing
Wednesday – Mortgage Applications / Productivity and Costs
Thursday – Jobless Claims / Consumer Credit
Friday – No major data
Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC
June 04, 2018