Weekly Market Wrap: Stocks rebounded higher this week as the Fed dropped its “patient” language but added that it will be “cautious” in raising short-term interest rates.
For The Week
- The S&P 500 rose 2.66% to 2108.06
- Oil gained 3.86% to $46.57
- Gold jumped 2.37% to $1,183.02
- The US Dollar dropped 2.32% at $97.93 against other major world currencies.
2015 Year-To Date for the major indexes:
- The S&P Index +2.39%
- The Dow Jones Index +1.71%
- The NASDAQ Index +6.13%
- The Russell 2000 Small cap Index +5.12%
- EAFE International Index +7.92%
- 10 Year Treasury Yield is 1.93%, lower for the week and lower for the year
- 30 Year Treasury Yield is 2.51%, lower for the week and lower for the year
- WTI Crude Oil Index -12.58%
- Bloomberg Gold Index +0.01%
- The Dollar Index +8.47% against other major world currencies
Monday the S&P 500 index jumped 28 points on moderate volume as US industrial production, homebuilder sentiment and regional manufacturing all missed expectations.
Tuesday the S&P 500 fell 7 points on moderate volume as housing starts were mixed.
Wednesday the index rallied 25 points on moderately-heavy volume as mortgage applications fell and the Fed meeting announcement indicated a slower outlook for the economy and a cautious approach to rate hikes.
Thursday the S&P index pulled back 10 points on moderate volume as weekly jobless claims rose but beat, leading indicators moved higher and regional manufacturing slowed.
Friday the index rose 19 points on heavy volume with no major data.
Takeaways from this week:
- The Fed surprised the markets this week by indicating it will be “Cautious” in raising rates indicating that a June rate hike may be in doubt.
- Interest rates dropped on the Fed announcement sending the 10-year treasury back below 2%..
- World stocks rallied this week as well sending the EFA index to its highest level this year.
Mortgage rates were lower on the week. The national averages as reported by Bankrate.com indicate a 15-year rate of 3.11% and a 30-year rate of 3.87%. These rates are as of 03/23/2015 and may include points.
What to watch for on the economic calendar this week:
Monday –Existing Home Sales
Tuesday –Consumer Prices / New Home Sales / PMI Manufacturing
Wednesday –Mortgage Applications / Durable Goods Orders
Thursday – Jobless Claims / PMI Services
Friday – GDP / Consumer Sentiment
Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC
March 23, 2015