Weekly Market Wrap: Stocks moved lower last week on mixed earnings and mostly disappointing economic data.
For The Week
- The S&P 500 fell 1.26% to 2065.30
- Oil added 5.01% to $45.92
- Gold jumped 4.78% to $1,292.44
- The US Dollar dropped 2.12% to $93.05 against other major world currencies.
2016 Year-To Date for the major indexes:
- The S&P Index +1.05
- The Dow Jones Index +2.00%
- The NASDAQ Index -4.63%
- The Russell 2000 Small Cap Index -0.44%
- EAFE International Index -0.49%
- 10 Year Treasury Yield is 1.82%, lower for the week and lower for the year
- 30 Year Treasury Yield is 2.66%, lower for the week and lower for the year
- WTI Crude Oil Index +23.97%
- Bloomberg Gold Index +21.87%
- The Dollar Index -5.63% against other major world currencies
Monday the S&P 500 slipped 4 points on moderate volume as both new home sales and Dallas area manufacturing fell and missed estimates.
Tuesday the index gained 4 points on moderately-heavy volume as durable goods orders rose but missed expectations, Shiller home prices continued higher and matched consumer confidence fell and missed expectations while PMI services flash was higher and beat expectations.
Wednesday the S&P index added 3 points on moderately-heavy volume as mortgage applications fell, pending home sales fell but beat expectations and the Fed left rates unchanged as expected noting that the economy slowed and inflation remained tame.
Thursday stocks fell 19 points on moderately-heavy volume as jobless claims rose but beat expectations while 1Q estimated GDP came in at 0.5% which was slightly lower than expected. Overseas the Bank of Japan surprised world markets was offering no additional stimulus.
Friday the index was down 11 points on heavy volume as personal income rose more than expected, consumer spending was flat and missed, employment costs were flat and beat expectations, consumer sentiment fell and missed while Chicago manufacturing also fell and missed expectations.
Takeaways from this week:
- Stocks slumped this week as corporate earnings were mixed. Eventually we will need some growth in earnings to push these markets higher or at least hold these levels.
- Treasury moved slightly lower.
- Overseas stocks fell back into negative territory for 2016.
Mortgage rates were mostly flat for the week. The national averages as reported by Bankrate.com indicate a 15-year rate of 2.81% and a 30-year rate of 3.69%. These rates are as of 5/02/2016 and may include points.
What to watch for on the economic calendar this week:
Monday – PMI & ISM Manufacturing / Construction Spending
Tuesday – Motor Vehicle Sales
Wednesday –Mortgage Applications / ADP Employment / Productivity & Costs / PMI Services / ISM Non-Manufacturing / Factory Orders
Thursday –Weekly Jobless Claims
Friday – April Employment Situation / Consumer Credit
Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC
May 2, 2016