Weekly Market Wrap: Stocks kicked off the new year on a positive
note surging on Tuesday and trading mostly flat for the remainder of the week
despite positive jobs news. The S&P
500 index advanced 1.61% to close at 1,277.81.
Gold and Oil moved higher on the week as well. Oil was up 2.74% to $101.73 and Gold surged
3.4% to $1,617.20. The dollar was higher
against other major world currencies up 1.26% to $81.25.
Year-To-Date for the major indexes: The S&P index
+1.61%, The Dow Jones Index +1.17, The NASDAQ +2.65%, The Russell 2000 Small cap
Index +1.19, EAFE International -0.41%. The
10 year treasury is currently yielding 1.96% and the 30 year is yielding 3.02%. Yields are higher on the week and the year.
On Monday the markets were closed for the New Year holiday.
Tuesday the S&P 500 index surged 19 points on moderate
volume as global manufacturing expands and November construction spending beats
expectations. Also, Oil hit an eight month
high at $103.
Wednesday the index traded flat on moderate volume as Eurozone
banking concerns resurfaced despite a favorable German bond auction and the
dollar continued to rise against the Euro.
In the US factory orders beat expectations, mortgage applications
declined and auto sales were solid in December.
Thursday the market added 4 points on moderate volume as jobless
claims continued to drop, the ADP jobs report showed a surge in job growth, service
sector activity increased and same store sales were mixed.
Friday the market dropped 3 points on moderate volume as the
private sector added 212,000 jobs dropping the unemployment rate to 8.5% (the
lowest since 2/09). Europe drove US
stocks lower as Italian and Spanish bond rates rose once again.
Trading resumed for the new year on a positive note with the
markets surging on Tuesday and managed to hold on to those gains for the
remainder of the week. Pressure from
Europe markets was not enough to derail continually improving economic data out
of the US.
Europe is going to take considerable time to fix the damage
that has been done (as well as our own debt issues). As long as Europe can stay somewhat stabilized
in 2012 I believe the US markets will rally on improving economic news.
Mortgage rates were mostly flat this week. The Schwab Bank 15-year rate is now at 3.35%
and the 30-year rate is at 4.04%. These rates are as of 01/06/2012 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 News
Tuesday – NFIB Small Business Optimism
Wednesday – Beige Book Regional Manufacturing Data
Thursday – Weekly Jobless Claims / Retail Sales / Business Inventories
Friday – Import and Export Prices / Consumer Sentiment
Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC
January 09, 2012