AAM Weekly Market Wrap – May 11, 2020

Weekly Market Wrap: Stocks rose last week on mixed earnings data and possible progress on a virus vaccine outweighed generally dismal economic data (economic data will be terrible for the next 3-4 months but the markets are expecting that).

For The Week

  • The S&P 500 jumped 3.50% to 2,929.80
  • Oil soared 25.08% to $24.74
  • Gold gained 0.36% to $1,705.49
  • The US dollar rose 0.74% at $99.77 against other major world currencies.

2020 Year-To Date for the major indexes:

  • The S&P Index -9.32%
  • The Dow Jones Index -14.74%
  • The NASDAQ Index +1.66%
  • The Russell 2000 Small cap Index -20.31%
  • EAFE International Index -18.15
  • 10 Year Treasury Yield is 0.69%, higher for the week and lower for the year
  • 30 Year Treasury Yield is 1.39%, higher for the week and lower for the year
  • WTI Crude Oil Index -59.48%
  • Bloomberg Gold Index +12.35%
  • The Dollar Index +3.39% against other major world currencies

Monday the S&P 500 rose 12 points on moderately heavy volume as factory orders fell more than expected.

Tuesday stocks added 26 points on moderately heavy volume as ISM Non-Manufacturing fell but beat expectations.

Wednesday the S&P 500 lost 20 points on moderately heavy volume as mortgage applications rose and ADP employment fell a little less to than expected showing 20 million jobs lost.

Thursday stocks rose 33 points on moderately heavy volume as jobless claims fell more than expected losing another 3 million jobs, consumer credit use fell more than expected, worker productivity fell but beat while unit labor costs rose more than expected.

Friday the S&P 500 surged 49 points on moderately heavy volume as the April jobs report showed a loss of 20.5 million jobs which was slightly less than expected, hourly earnings rose 4.7% which was more than expected and unemployment rose to 14.7% which was slightly less than expected.

Mortgage rates were mixed last week. The national averages as reported by Bankrate.com indicate a 15-year rate of 3.12% and a 30-year rate of 3.51%. These rates are as of 05/11/2020 and may include points.

What to watch for on the economic calendar this week:

Monday – No major data

Tuesday – Small Business Optimism / Consumer Prices

Wednesday – Mortgage Applications / Producer Prices

Thursday – Jobless Claims / Import & Export Prices

Friday – Retail Sales / Consumer Sentiment / Industrial Production / Capacity Utilization / NY Manufacturing

Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC

May 11, 2020                                   

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Advanced Asset Management
4555 Wilson Ave SW, Suite 2
Grandville, MI 49418

Phone: (616) 531-5220