Weekly Market Wrap: Stocks bounced back this week as US economic
data was mostly positive and Eurozone worries eased. The S&P 500 index added 2% to close at
1,155.46. Gold finished 1% higher to close
at $1,638 per oz. Oil added 0.25% to
close at $82.84 per barrel. The dollar
was mostly flat against other major world currencies at $78.72.
Year-To-Date for the major indexes: The S&P index
-8.12%, The Dow Jones Index -4.10, The NASDAQ -6.54%, The Russell 2000 Small cap
Index -16.26%, EAFE International -15.52%.
The 10 year treasury is currently yielding 2.07% and the 30 year is
yielding 3.02%. Both yields are higher for
the week and lower the year.
On Monday the S&P 500 index dropped 32 points on moderate volume as Greece announced that they will not hit their deficit reduction targets. In the US, GM and
Chrysler beat sales estimates for September, construction and manufacturing numbers
were both better than expected.
Tuesday the index bounced back 25 points on heavy volume as
progress in Europe triggered a late-day rally of 4%. US factory orders fell.
Wednesday the market added 20 points on heavy volume on
positive news from the ADP private sector jobs report, gains in the service
sector and declining mortgage applications.
Thursday stocks gained 20 points on heavy volume as the
Eurozone discussed supporting banks, US same store sales were above
expectations, weekly jobless claims were less than expected and news of the
passing of Steve Jobs who founded Apple.
Friday the market gave back some of the week’s gains
dropping 10 points on moderate volume as Fitch downgraded the debt of Spain and
Italy. In the US private sector payrolls
were better than expected, wholesale inventories fell and consumer credit was
Europe was still the primary driver of the markets this week but
mostly positive economic news out of the US helped as well. Much needed good news in the payrolls data
helped push the market higher.
Mortgage rates jumper higher this week. The Schwab Bank 15-year rate is now at 3.78%
and the 30-year rate is at 4.47%. These rates are as of 10/07/2011 and assume
no points, no origination fee and a $250,000 conforming rate mortgage.
What to watch for on the economic calendar next week:
Monday – Columbus Day – Markets open but banks closed
Tuesday – Small business optimism
Wednesday – FOMC Minutes released
Thursday –Weekly Jobless Claims / International Trade
Friday – Retail Sales / Consumer Sentiment
Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC
October 10, 2011