Weekly Market Wrap: Mixed 3rd Quarter earnings reports send stocks lower this week despite a better than expected 3rd quarter GDP report on Friday, Oil sinks below $90.
For The Week
- The S&P 500 Index -1.48% to 1,411.94
- Oil -4.45% to $86.13
- Gold -0.57% to $1,711.95
- Dollar +0.53% to $80.05
Year-To-Date for the major indexes:
- The S&P index +12.27%
- The Dow Jones Index +7.28
- The NASDAQ Index +14.69%
- The Russell 2000 Small cap Index +9.76%
- EAFE International Index +7.68%
- 10 Year Treasury Yield at 1.75%
- 30 Year Treasury Yield at 2.92%
- WTI Crude Oil Index -13.02%
- Bloomberg Gold Index +9.46%
- Dollar Index -0.24%
Monday stocks added 1 point on light volume as 3rd quarter earnings worries kept gains at bay.
Tuesday stocks slumped 21 points on moderate volume as mid-Atlantic manufacturing contracted and more 3rd quarter earnings disappointments.
Wednesday stocks slipped 4 points on moderate volume as new home sales beat expectations, mortgage applications slipped and the Federal Reserve stated that they are maintaining a cautious outlook for the US economy. Overseas Chinese manufacturing beat expectations.
Thursday stocks rebounded 4 points on moderate volume as jobless claims beat, pending home sales missed, the durable goods orders were mixed and 3rd quarter earnings continued to disappoint.
Friday stocks fell 1 point on moderate volume as tech earnings disappointed but the 3rd quarter GDP beat estimates with a 2% growth rate. Overseas record unemployment in Spain and French bank downgrades pressured world markets.
Takeaways from this week:
- A better than expected 3rd quarter GDP figure and lower than expected jobless claims made up a pretty decent week of economic data. 3rd quarter earnings have been mixed with more disappointments this quarter as it becomes harder to beat the previous years gains.
- Overseas better news from China but continued struggles in Europe.
- Only a week away from the election and the market has not really done much in the last few weeks. It looks like we are in wait-and-see mode until after next Tuesday when hopefully a winner will be decided and the market can start focusing on the elections possible impact on our economy and the upcoming fiscal cliff.
Mortgage rates were flat this week. The national averages as reported by Bloomberg indicate a 15-year rate of 2.85% and a 30-year rate of 3.47%. These rates are as of 10/26/2012 and may include points.
What to watch for on the economic calendar next week:
Monday – Personal Income and Outlays / Dallas Manufacturing
Tuesday – Home Prices / Consumer Confidence
Wednesday – Employment Costs / Chicago PMI
Thursday – Jobless Claims / Motor Vehicle Sales / ADP Employment / ISM Manufacturing
Friday – October Employment Situation / Factory Orders
Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC
October 28, 2012