Weekly Market Wrap: Stocks fell last week despite a trade agreement between the US and Canada as interest rates jumped to a seven-year high on positive economic data.
For The Week
- The S&P 500 fell 0.97% to 2,885.57
- Oil added 1.49% to $74.34
- Gold gained 0.99% to $1,203.92
- The US dollar rose 0.53% at $95.64 against other major world currencies.
2018 Year-To Date for the major indexes:
- The S&P Index +7.93%
- The Dow Jones Index +6.99%
- The NASDAQ Index +12.82%
- The Russell 2000 Small cap Index +6.29%
- EAFE International Index -5.55%
- 10 Year Treasury Yield is 3.23%, lower for the week and higher for the year
- 30 Year Treasury Yield is 3.40%, lower for the week and higher for the year
- WTI Crude Oil Index +23.59%
- Bloomberg Gold Index -7.93%
- The Dollar Index +3.65% against other major world currencies
Monday the S&P 500 index rose 11 points on moderate volume as construction spending rose less than expected, the ISM manufacturing index fell and missed expectations, and the US and Canada agreed to a new trade deal. Overseas world manufacturing data was lower.
Tuesday stocks slipped 1 point on moderate volume as auto sales fell.
Wednesday the market gained 2 points on moderately-heavy volume as mortgage applications were flat, ADP Employment rose and beat expectations while ISM non-manufacturing rose and beat estimates.
Thursday the S&P 500 dropped 24 points on moderate volume as jobless claims fell and beat estimates while factory orders rose and beat expectations.
Friday stocks lost another 16 points on moderate volume as the September jobs report added a less than expected 134,000 jobs, average hourly earnings rose and matched expectations, the unemployment rate fell to 3.7% while consumer credit use rose.
Mortgage rates were higher on the week. The national averages as reported by Bankrate.com indicate a 15-year rate of 4.07% and a 30-year rate of 4.78%. These rates are as of 10/08/2018 and may include points.
What to watch for on the economic calendar this week:
Monday – No major data
Tuesday – Small business optimism
Wednesday – Mortgage Applications / Producer Prices
Thursday – Jobless Claims / Consumer Prices
Friday – Import & Export Prices / Consumer Sentiment
Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC
October 8, 2018