Weekly Market Wrap: Stocks finished the week mixed as positive trade data from the US and China boosted markets and Eurozone business activity also beat expectations.
For The Week
- The S&P 500 rose 0.31% to 1,517.93
- Oil slipped 1.98% to $95.72
- Gold added 0.07% to $1,668.95
- The US Dollar jumped 1.40% to $80.23 against other major world currencies.
2013 Year-To-Date for the major indexes:
- The S&P index +6.43%
- The Dow Jones Index +6.78%
- The NASDAQ Index +5.77%
- The Russell 2000 Small cap Index +7.57%
- EAFE International Index +4.28%
- 10 Year Treasury Yield at 1.95%
- 30 Year Treasury Yield at 3.17%
- WTI Crude Oil Index +4.25%
- Bloomberg Gold Index -0.30%
- The Dollar Index +0.53% against other major world currencies
Monday stocks dropped 17 points on moderate volume as factory orders missed, Eurozone political concerns arose again and yields on Spanish and Italian bonds rose.
Tuesday stocks surged 16 points on moderate volume as ISM services beat expectations and Eurozone business activity was better than expected.
Wednesday stocks added 1 point on moderate volume as mortgage applications increased and corporate earnings pushed stocks higher at the end of the session.
Thursday stocks lost 3 points on moderate volume as January retail sales beat expectations, Us jobless claims dropped less than expected, 4Q productivity contracted and 4Q labor costs were higher than expected.
Friday stocks gained 9 points on moderate volume as positive trade data from the US and China boosted stocks and US wholesale inventories declined.
Takeaways from this week:
- A surprising rise in January retail sales and better than expected service sector activity helped to push stocks slightly higher and offset some negative news out of Europe and the US.
- Positive earnings reports also helped to keep stocks in the black this week after a Monday hiccup.
- Don’t be surprised if we get a pull back in stock prices some time over the next month or two after the recent run-up. A common amount would be 5-10% Or about 75 to 150 points on the S&P 500. It could be a good opportunity to buy!
Mortgage rates were mixed week. The national averages as reported by Bloomberg indicate a 15-year rate of 2.90% and a 30-year rate of 3.61%. These rates are as of 02/08/2013 and may include points.
What to watch for on the economic calendar next week:
Monday – No major data
Tuesday – Small Business Optimism
Wednesday – Retail Sales / Import and Export Prices
Thursday – Jobless Claims
Friday – NY Manufacturing / Industrial Production / Consumer Sentiment
Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC
February 12, 2013