Weekly Market Wrap: The S&P 500 index closed at new highs Friday on mostly positive earnings and continuing low interest rates.
For The Week
- The S&P 500 gained 1.21% to 1,900.53
- Oil rose 2.28% to $104.35
- Gold added 0.03% to $1,293.05
- The US Dollar gained 0.44% to $80.38 against other major world currencies.
2014 Year-To Date for the major indexes:
- The S&P Index +2.82%
- The Dow Jones Index +0.18%
- The NASDAQ Index +0.22%
- The Russell 2000 Small cap Index -3.16%
- EAFE International Index +2.80%
- 10 Year Treasury Yield is 2.54%, higher for the week and lower for the year
- 30 Year Treasury Yield is 3.40%, higher for the week and lower for the year
- WTI Crude Oil Index +6.03%
- Bloomberg Gold Index +7.60%
- The Dollar Index +0.26% against other major world currencies
Monday the S&P 500 index added 7 points on moderate volume as merger news pushed stocks higher.
Tuesday stocks dropped 12 points on moderate volume as retail earning disappointed.
Wednesday the S&P index jumped 15 points on moderate volume as mortgage applications rose for the 3rd straight week and Fed minutes were released and indicated that the Fed will maintain low interest rates for the for-seeable future.
Thursday stocks added 4 points on moderate volume as initial jobless claims rose, existing home sales missed expectations, leading indicators rose and matched expectations and manufacturing data showed an expansion of activity.
Friday the S&P 500 index gained 8 points on moderately-light volume as new home sales beat expectations.
Takeaways from this week:
- The S&P 500 index moved back into all-time highs and small-cap stocks rebounded as well on a light schedule of data which was mostly positive.
- Bond yields rebounded slightly higher this week.
- Overseas stocks rose this week with the EFA moving higher once again.
Mortgage rates were mixed last week. The national averages as reported by Bloomberg indicate a 15-year rate of 3.20% and a 30-year rate of 4.16%. These rates are as of 05/27/2014 and may include points.
What to watch for on the economic calendar this week:
Monday –Markets Closed
Tuesday – Durable Goods Orders / Home Prices / Consumer Confidence
Wednesday – Weekly Mortgage Applications / Fed Redbook
Thursday – Weekly Jobless Claims / GDP / Pending Home Sales
Friday – Personal Income and Outlays / Consumer Sentiment
Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC
May 27, 2014