AAM Weekly Market Wrap – October 1, 2018

Weekly Market Wrap: Stocks were mixed last week as the Federal Reserve raised rates for the third time in 2018 as expected while economic data continued to be generally positive.

 

For The Week

  • The S&P 500 slipped 0.54% to 2,913.98
  • Oil jumped 3.49% to $73.25
  • Gold lost 0.57% to $1,192.17
  • The US dollar rose 0.99% at $95.14 against other major world currencies.

 

2018 Year-To Date for the major indexes:

 

  • The S&P Index +8.99%
  • The Dow Jones Index +7.04%
  • The NASDAQ Index +16.56%
  • The Russell 2000 Small cap Index +10.49%
  • EAFE International Index -3.30%
  • 10 Year Treasury Yield is 3.05%, lower for the week and higher for the year
  • 30 Year Treasury Yield is 3.19%, lower for the week and higher for the year
  • WTI Crude Oil Index +21.78%
  • Bloomberg Gold Index -8.53%
  • The Dollar Index +3.11% against other major world currencies

 

 

Monday the S&P 500 index dropped 10 points on moderate volume with no major data reported.

Tuesday stocks slipped another 4 points on moderate volume as consumer confidence rose and beat expectations, FHFA home prices rose and matched estimates while Shiller home prices rose but missed estimates.

Wednesday the market fell 10 points on moderate volume as mortgage applications rose, new home sales rose but missed estimates while the FOMC raised short-term rates as expected.

Thursday the S&P 500 rose 8 points on moderate volume as jobless claims rose more than expected, pending home sales fell and missed estimates, durable goods orders rose and beat expectations while 2Q GDP final estimate was slightly less than expected at 4.2%.

Friday stocks slipped less than 1 point on heavy volume as PCE prices rose and matched expectations, personal income rose but missed estimates, personal spending rose and matched estimates while consumer sentiment fell and missed expectations but remained high.

Mortgage rates were lower on the week.  The national averages as reported by Bankrate.com indicate a 15-year rate of 3.93% and a 30-year rate of 4.57%. These rates are as of 10/01/2018 and may include points.

 

What to watch for on the economic calendar this week:


Monday – Construction Spending / ISM Manufacturing

Tuesday – September Auto Sales

Wednesday – Mortgage Applications / ISM Services / ADP Employment

Thursday – Jobless Claims / Factory Orders

Friday – September Employment / Consumer Credit

 

 

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

October 1, 2018

 

 

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