AAM Weekly Market Wrap – May 7, 2018

Weekly Market Wrap: Stocks fell again last week despite a large rally on Friday’s mostly positive jobs report.

 

For The Week

  • The S&P 500 slipped 0.24% to 2,663.42
  • Oil jumped 2.38% to $69.72
  • Gold fell 0.70% to $1,314.25
  • The US dollar rose 1.21% at $92.61 against other major world currencies.

 

2018 Year-To Date for the major indexes:

 

  • The S&P Index -0.38%
  • The Dow Jones Index -1.85%
  • The NASDAQ Index +4.44%
  • The Russell 2000 Small cap Index +1.96%
  • EAFE International Index +0.88%
  • 10 Year Treasury Yield is 2.95%, lower for the week and higher for the year
  • 30 Year Treasury Yield is 3.12%, lower for the week and higher for the year
  • WTI Crude Oil Index +15.91%
  • Bloomberg Gold Index +0.84%
  • The Dollar Index +0.37% against other major world currencies

 

 

Monday the S&P 500 dropped 22 points on heavy volume as personal income rose and missed estimates, consumer spending rose and matched, PCE prices were flat and missed while pending home sales rose but missed expectations.

Tuesday stocks rose 7 points on moderate volume as motor vehicle sales fell and matched estimates, PMI manufacturing rose and matched, ISM Non-manufacturing fell and missed estimates and construction spending fell and missed expectations.

Wednesday the index fell 19 points on moderate volume as mortgage applications fell and the ADP jobs report fell but beat expectations.

Thursday the S&P 500 lost 6 points on moderate volume as jobless claims rose but beat expectations, both productivity and labor costs rose but missed estimates, PMI Services rose and beat, ISM Non-manufacturing fell and missed while factory orders rose and beat expectations.

Friday stocks jumped 34 points on moderate volume as the April jobs report showed 164,000 jobs added which was below estimates, unemployment fell to 3.9% and beat estimates, the labor participation rate fell to 62.8% and average hourly earnings rose but missed estimates.

Mortgage rates slipped lower on the week.  The national averages as reported by Bankrate.com indicate a 15-year rate of 3.84% and a 30-year rate of 4.41%. These rates are as of 5/07/2018 and may include points.

 

What to watch for on the economic calendar this week:


Monday – Consumer Credit

Tuesday – Small Business Optimism

Wednesday – Mortgage Applications / Producer Prices

Thursday – Jobless Claims / Consumer Prices

Friday – Import & Export Prices / Consumer Sentiment

 

 

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

May 07, 2018

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