AAM Weekly Market Wrap – October 15 2012

Weekly Market Wrap:  Stocks sink this week on lingering world growth concerns.

 

For The Week

  • The S&P 500 Index -2.21% to 1,428.59
  • Oil +2.00% to $91.76
  • Gold -1.49%  to $1,754.65
  • Dollar +0.37% to $79.67

Year-To-Date for the major indexes:

 

  • The S&P index +13.60%
  • The Dow Jones Index +9.10
  • The NASDAQ Index +16.85%
  • The Russell 2000 Small cap Index +11.09%
  • EAFE International Index +7.09%
  • 10 Year Treasury Yield at 1.66%
  • 30 Year Treasury Yield at 2.84%
  • WTI Crude Oil Index -7.33%
  • Bloomberg Gold Index +12.19%
  • Dollar Index -0.71%

 

 

 

 

Monday stocks slipped 5 points on light volume as China growth forecasts were cut and concerns continued regarding the Eurozone.

Tuesday stocks dropped 14 points on light volume as the IMF (International Monetary Fund) cut world growth forecasts and in the US small business optimism declined.

Wednesday stocks lost another 9 points on light volume as wholesale inventories rose more than expected, mortgage applications declined, the Fed beige book showed moderate US economic growth  with a boost from housing and 3Q earnings season kicked off with mixed results.

Thursday stocks added less than one point on light volume as jobless claims surprised with a 30,000 drop in claims, import prices rose, the US trade deficit expanded and overseas an Italian debt auction was successful.

Friday stocks slipped 4 points on light volume as consumer sentiment hit a 5-year high and US producer prices were higher than expected.

 

Takeaways from this week:

  • Cuts in world growth forecasts started the week on a down note and continued default talk regarding Greece could not be offset by a positive debt auction in Italy.
  • Jobless claims dropped significantly this week after the unemployment rate was lowered last week.  Possible good signs that the economy may have started adding more jobs.
  • US consumer sentiment hit a 5 year high.  This could allow for better retail sales going in to the all-important Christmas season.

 

Mortgage rates were slightly lower this week.  The national averages as reported by Bloomberg indicate a 15-year rate of 2.80% and a 30-year rate of 3.39%. These rates are as of 10/12/2012 and may include points.

 

What to watch for on the economic calendar next week:


Monday – Retail Sales / NY Manufacturing

Tuesday – Consumer Price Index / Industrial Production / Housing Market Index

Wednesday – Housing Starts

Thursday – Jobless Claims / Philadelphia manufacturing / Leading Economic Indicators

Friday – Existing Home Sales

 

 

Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC
October 15, 2012

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