AAM Weekly Market Wrap – October 24 2011

Weekly Market Wrap: Stocks continued to climb this week as
positive earnings news and continued easing of the Euro-debt concerns added to
market sentiment.  The S&P 500 index
gained 1.2% to close at 1,238.25.
Commodities were mixed on the week.
Oil gained 0.24% to close at $87.40 per barrel and gold dropped 2.44% to
$1,639.60 per oz.  The dollar dropped
0.56% against other major world currencies to close at $76.32.
Year-To-Date for the major indexes: The S&P index
-1.54%, The Dow Jones Index +2.00, The NASDAQ -0.58%, The Russell 2000 Small cap
Index -9.09%, EAFE International -11.43%.
The 10 year treasury is currently yielding 2.20% and the 30 year is
yielding 3.25%.  Yields are mixed for the
week and lower for the year.
On Monday the S&P 500 index dropped 24 points as Germany
made less than positive comments on the Euro-zone, industrial production was
in-line with estimates and New York manufacturing was up but less than
Tuesday the index surged 25 points on strength in financial
companies and US consumer sentiment moved higher.  On the negative side, economic data out of
Europe and China was weak and US producer prices moved higher.
Wednesday the market dropped 16 points as France and Germany
disagreed on a Euro-bailout and the Fed’s beige book pointed to a cooler US
economy.  On the positive side inflation
came in lower than expected and housing starts surprised to the up-side.
Thursday stocks added 6 points as the Fed Philly
manufacturing index moved into expansion territory, the leading economic
indicators showed a 5th straight monthly rise and a European summit
was delayed but news of a definitive agreement pushed stocks higher.  Also, weekly jobless claims were lower but
less than expected and existing home sales dropped.
Friday the market added 23 points on moderate volume as
positive earnings new and Euro-zone optimism pushed stocks higher.  As far this earnings season 70% of companies
have beat estimates on revenues and 72% have beat on earnings.  Corporate America is doing well and will
hopefully pull us out of the recent market doldrums.
Stocks rallied after a mid-week lull and fished higher for the 3rd
straight week.  US earnings and economic
data was mostly positive.  News out of
Europe turned positive by the end of the week as well.  Trading volume was mostly light but picked up
at the close of the week.  With continued
positive news this could signal another rally this week.
Mortgage rates were lower this week.  The Schwab Bank 15-year rate is now at 3.625%
and the 30-year rate is at 4.28%. These rates are as of 10/21/2011 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 – No major releases
Tuesday – Consumer Confidence / Case Shiller Home Prices
Wednesday – Durable Goods Orders / New Home Sales
Thursday –Weekly Jobless Claims / Pending Home Sales / GDP
Friday – Personal Income and Outlays / Employments Costs / Consumer Sentiment
Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC
October 24, 2011

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