AAM Weekly Market Wrap – November 12, 2018

Weekly Market Wrap: Stocks were higher for the second straight week as the mid-term election results rolled in about as expected and the Fed left rates unchanged but appear to be on track to raise rates again in December and 2019.

 

For The Week

  • The S&P 500 added 2.13% to 2,781.01
  • Oil dropped 4.29% to $60.19
  • Gold fell 1.90% to $1,209.63
  • The US dollar rose 0.48% at $96.93 against other major world currencies.

 

2018 Year-To Date for the major indexes:

 

  • The S&P Index +4.02%
  • The Dow Jones Index +5.14%
  • The NASDAQ Index +7.29%
  • The Russell 2000 Small cap Index +0.91%
  • EAFE International Index -9.81%
  • 10 Year Treasury Yield is 3.19%, lower for the week and higher for the year
  • 30 Year Treasury Yield is 3.39%, lower for the week and higher for the year
  • WTI Crude Oil Index +0.07%
  • Bloomberg Gold Index -7.19%
  • The Dollar Index +4.02% against other major world currencies

 

 

Monday the S&P 500 index rose 15 points on heavy volume as ISM non-manufacturing fell but beat expectations while PMI services rose.

Tuesday stocks added 17 points on moderate volume with no major data reported and the mid-term elections underway.

Wednesday the market surged 58 points on moderate volume as mortgage applications fell, consumer credit use fell and missed expectations and the election results came in as expected with the Democrats gaining a majority in the House and the Republicans gaining seats in the Senate.

Thursday the S&P 500 lost 7 points on moderate volume as jobless claims fell but missed estimates while the FOMC left rates unchanged and left the door open for a rate hike in December and possibly 2-3 more in 2019.

Friday stocks dropped 26 points on heavy volume as producer prices rose 0.6% which was much higher than expected and consumer sentiment slipped but beat expectations.

Mortgage rates were higher on the week.  The national averages as reported by Bankrate.com indicate a 15-year rate of 4.13% and a 30-year rate of 4.82%. These rates are as of 11/12/2018 and may include points.

 

What to watch for on the economic calendar this week:


Monday – No Major Data

Tuesday – Small Business Optimism

Wednesday – Mortgage Applications / Consumer Prices

Thursday – Jobless Claims / Import & Export Prices / NY Manufacturing / Retail Sales

Friday – Industrial Production

 

 

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

November 12, 2018

 

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