Weekly Market Wrap: Stocks continued higher for the sixth straight week on positive economic data and a strong October jobs report.
For The Week
- The S&P 500 added 0.95% to 2099.20
- Oil was fell 4.94% to $44.29
- Gold dropped 4.68% to $1,088.41
- The US Dollar jumped 2.24% to $99.16 against other major world currencies.
2015 Year-To Date for the major indexes:
- The S&P Index +1.96%
- The Dow Jones Index +0.49%
- The NASDAQ Index +8.68%
- The Russell 2000 Small cap Index -0.41%
- EAFE International Index +0.16%
- 10 Year Treasury Yield is 2.35%, higher for the week and higher for the year
- 30 Year Treasury Yield is 3.10%, higher for the week and higher for the year
- WTI Crude Oil Index -16.86%
- Bloomberg Gold Index -7.99%
- The Dollar Index +9.84% against other major world currencies
Monday the S&P 500 index surged 25 points as PMI Manufacturing matched expectations while both the ISM Manufacturing and factory orders beat expectations. Overseas Europe posted positive manufacturing data while Chinese data disappointed.
Tuesday the index added 6 points on moderately-heavy volume as motor vehicle sales beat expectations while factory orders fell and matched expectations.
Wednesday the index fell 7 points on moderately-heavy volume as mortgage applications fell, ADP showed 182,000 new private sector jobs created, ISM non-manufacturing rose and beat expectations while the PMI services slowed and matched expectations.
Thursday the index slipped 2 points on moderately-heavy volume as weekly jobless claims rose more than expected but remained low, productivity fell bet beat expectations and labor costs rose.
Friday the S&P 500 index lost 1 point on moderately-heavy volume as the October jobs report added 271,000 new jobs handily beating expectations, the unemployment rate fell to 5.0% and consumer credit rose more than expected.
Takeaways from this week:
- Stocks rose last week on positive economic data with consumers showing up in October and spending!
- Treasury yields jumped higher as it now looks like a December rate hike is likely.
- Overseas stocks continued to struggle and were lower on the week.
Mortgage rates moved higher for the week. The national averages as reported by Bankrate.com indicate a 15-year rate of 2.98% and a 30-year rate of 3.91%. These rates are as of 11/09/2015 and may include points.
What to watch for on the economic calendar this week:
Monday –No major data
Tuesday – Import and Export Prices / Small Business Optimism
Wednesday –No major data
Thursday – Mortgage Applications / Weekly Jobless Claims
Friday – Producer Prices / Retail Sales / Consumer Sentiment
Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC
November 9, 2015