Weekly Market Wrap: The S&P 500 suffered its first weekly loss of 2013 as Fed policy makers debate whether to continue with further stimulus.
For The Week
- The S&P 500 slipped 0.28% to 1,515.60
- Oil slumped 2.92% to $93.13
- Gold dropped 1.50% to $1,580.33
- The US Dollar jumped 1.17% to $81.43 against other major world currencies.
2013 Year-To-Date for the major indexes:
- The S&P index +6.27%
- The Dow Jones Index +6.84%
- The NASDAQ Index +4.71%
- The Russell 2000 Small cap Index +7.87%
- EAFE International Index +3.48%
- 10 Year Treasury Yield is 1.97%, lower for the week and higher for the year
- 30 Year Treasury Yield is 3.16%, lower for the week and higher for the year
- WTI Crude Oil Index +1.43%
- Bloomberg Gold Index -5.59%
- The Dollar Index +2.03% against other major world currencies
Monday markets were closed for the Presidents Day holiday.
Tuesday stocks gained 11 points on moderate volume as German confidence rose and US homebuilder sentiment decreased.
Wednesday stocks dropped 19 points on moderate volume as housing starts and mortgage applications declined, producer prices increased modestly and building permits beat.
Thursday stocks slumped another 9 points on moderate volume as the Fed meeting showed some bankers wanted to reduce stimulus, Philly manufacturing contracted unexpectedly, leading economic indicators rose, Eurozone business activity decreased and US jobless claims rose.
Friday stocks bounced back 13 points on moderate volume as German business sentiment rose.
Takeaways from this week:
- Stocks pulled back about 2% mid-week as the Federal Reserve board indicated that it could halt stimulus measures sometime in 2013.
- All eyes are moving back towards Washington as mandated spending cuts are scheduled to begin on March first. Opinions vary greatly on how these spending cuts could impact the US economy. In some respects I think the cuts are needed and would be a good start towards balanced budget.
Mortgage rates fell slightly last week. The national averages as reported by Bloomberg indicate a 15-year rate of 2.89% and a 30-year rate of 3.64%. These rates are as of 02/22/2013 and may include points.
What to watch for on the economic calendar next week:
Monday – Dallas area manufacturing
Tuesday – Home Prices / New Home Sales / Consumer Confidence
Wednesday – Durable Goods Orders / Pending Home Sales
Thursday – Jobless Claims / GDP / Chicago area manufacturing
Friday – Motor Vehicle Sales / Personal Income & Outlays / PMI Manufacturing / Consumer Sentiment / ISM Manufacturing / Construction Spending
Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC
February 24, 2013