Weekly Market Wrap: Stocks ended flat for the week with Chinese stocks plummeting and then rebounding while Greece votes no on austerity and searches for a new debt deal.
For The Week
- The S&P 500 slipped 0.01% to 2,076.62
- Oil plummeted 7.36% to $52.74
- Gold dropped 0.25% to $1,163.01
- The US Dollar fell 0.187% at $95.96 against other major world currencies.
2015 Year-To Date for the major indexes:
- The S&P Index +0.86%
- The Dow Jones Index -0.35%
- The NASDAQ Index +5.52%
- The Russell 2000 Small cap Index +3.93%
- EAFE International Index +5.69%
- 10 Year Treasury Yield is 2.45%, higher for the week and higher for the year
- 30 Year Treasury Yield is 3.22%, higher for the week and higher for the year
- WTI Crude Oil Index -0.99%
- Bloomberg Gold Index -1.68%
- The Dollar Index +6.29% against other major world currencies
Monday the S&P 500 index fell 8 points on moderately-heavy volume as Greece voted no to reform for a possible debt deal. In the US service activity was mixed with the ISM index rising while the PMI services index fell.
Tuesday the index gained 12 points on heavy volume as stocks prices reversed from early day losses with no Greek deal and a plummeting Chinese stock market.
Wednesday the index dropped 35 points on light volume as Chinese stocks continue to free-fall and Greece continued to work on a deal to remain in the European Union. In the US, mortgage applications rose, 2Q earnings season kicked off and the Fed indicated that it would be cautious in raising interest rates. Also, trading was light due to a technical glitch which halted NYSE trading for a good part of the day.
Thursday the S&P index gained 5 points on heavy volume as Chinese stocks rebounded and hopes for a Greek deal improved. US jobless claims rose.
Friday the index rallied 25 points on moderate volume as Chinese stocks continued to rebound and US wholesale inventories rose..
Takeaways from this week:
- Little US data this week but 2Q earnings season kicked off and should help direct the market over the next few weeks.
- Treasury rates rose to their highest levels of 2015.
- Greece and China added volatility to US and world markets. China is going through a period of extreme volatility in their markets while Greece continues to be Greece.
Mortgage rates were higher on the week. The national averages as reported by Bankrate.com indicate a 15-year rate of 3.28% and a 30-year rate of 4.27%. These rates are as of 07/13/2015 and may include points.
What to watch for on the economic calendar this week:
Monday –No major data
Tuesday – Small Business Optimism / Retail Sales / Import & Export Prices
Wednesday –Mortgage applications / Producer Prices / Industrial Production / NY Manufacturing
Thursday – Jobless Claims / Housing Market Index
Friday – Consumer Prices / Housing Starts / Consumer Sentiment
Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC
July 13, 2015