Weekly Market Wrap: Stocks rebounded last week on a very positive jobs report and as the concerns over the steel and aluminum tariffs eased.
For The Week
- The S&P 500 gained 3.54% to 2,786.57
- Oil added 1.29% to $62.04
- Gold rose 0.07% to $1,323.18
- The US dollar gained 0.22% at $90.12 against other major world currencies.
2018 Year-To Date for the major indexes:
- The S&P Index +4.22%
- The Dow Jones Index +2.49%
- The NASDAQ Index +9.52%
- The Russell 2000 Small cap Index +4.01%
- EAFE International Index +0.67%
- 10 Year Treasury Yield is 2.90%, higher for the week and higher for the year
- 30 Year Treasury Yield is 3.16%, higher for the week and higher for the year
- WTI Crude Oil Index +3.14%
- Bloomberg Gold Index +1.52%
- The Dollar Index -2.33% against other major world currencies
Monday the S&P 500 gained 30 points on moderately-heavy volume as PMI services rose and matched while ISM non-manufacturing fell but beat expectations.
Tuesday stocks added 7 points on moderately-heavy volume as factory orders fell a little more than expected.
Wednesday the index lost 1 point on moderately-heavy volume as mortgage applications were mixed, ADP jobs rose and beat estimates, productivity was flat and beat, labor costs rose a little more than expected and consumer credit use fell more than expected. In Washington Gary Kohn resigned as white house chief economic officer.
Thursday the S&P 500 gained 12 points on moderately-heavy volume as jobless claims rose more than expected, President Trump signed a more moderate version of the tariff bill and the European ECB left rates unchanged.
Friday the index jumped 48 points on moderately-heavy volume as the February jobs report showed 313,000 new jobs which beat expectations, unemployment remained at 4.1%, the participation rate rose to 63% and beat expectations while average hourly earnings rose but missed estimates. Overseas, North Korean dictator Kim Jung Un offered to meet with President Trump and he agreed to talk.
Mortgage rates were higher on the week. The national averages as reported by Bankrate.com indicate a 15-year rate of 3.76% and a 30-year rate of 4.34%. These rates are as of 3/12/2018 and may include points.
What to watch for on the economic calendar this week:
Monday – No major data
Tuesday – Small Business Optimism / Consumer Prices
Wednesday – Mortgage Applications / Producer Prices / Retail Sales
Thursday – Jobless Claims / Import & Export Prices / Housing Market Index
Friday – Housing Starts / Industrial Production / Consumer Sentiment
Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC
March 12, 2018