AAM Weekly Market Wrap – November 11 2012

Weekly Market Wrap:  Stocks turn lower post-election as the markets focus on the “fiscal cliff” and continued disappointments out of Europe.

 

For The Week

  • The S&P 500 Index  slipped 2.43% to 1,379.85
  • Oil gained 1.43%% to $86.07
  • Gold jumped 3.11% to $1,732.03
  • US Dollar added 0.56% to $81.02

Year-To-Date for the major indexes:

  • The S&P index +9.72%
  • The Dow Jones Index +4.89%
  • The NASDAQ Index +11.50%
  • The Russell 2000 Small cap Index +7.30%
  • EAFE International Index +6.08%
  • 10 Year Treasury Yield at 1.61%
  • 30 Year Treasury Yield at 2.75%
  • WTI Crude Oil Index -13.08%
  • Bloomberg Gold Index +10.74%
  • Dollar Index +0.97% against other major world currencies

 

 

Monday the S&P 500 added 3 points on light volume as the US service sector showed improvement and overseas concerns continued for Greece an d Spain.

Tuesday stocks jumped 11 points on moderate volume as the US election day finally arrived.

Wednesday stocks slumped 34 points on heavy volume as post-election jitters and fiscal cliff concerns sent stocks lower.  Disappointing data out of Europe, German economic worries and protesting in Greece also weighed on markets.  In the US mortgage applications were lower and consumer credit expanded.

Thursday stocks dropped 17 points on moderate volume as jobless claims fell but the post-election blues continued.  Overseas lingering Euro-worries added to the negative sentiment.

Friday stocks rebounded 2 points on moderate volume as consumer confidence hit a 5-year high, wholesale inventories beat and import prices rose.

 

Takeaways from this week:

  • The election is now over and one uncertainty has been eliminated but a very large one still exists.  The “fiscal cliff” now will cast a dark shadow over the markets until it is eliminated.  Congress is going to have to come up with some type of agreeable combination of tax increases and fiscal spending cuts to avert a more drastic version of the same on January 1st.
  • In addition to election jitters, Europe was back in the news this week with mostly negative news giving us a little reminder that potential problems to our markets still exist from overseas.

 

Mortgage rates were flat again this week.  The national averages as reported by Bloomberg indicate a 15-year rate of 2.83% and a 30-year rate of 3.41%. These rates are as of 11/09/2012 and may include points.

 

What to watch for on the economic calendar next week:


Monday – Veterans Day holiday – markets closed

Tuesday – Small Business Optimism

Wednesday – FOMC Minutes / Producer Prices / Retail Sales

Thursday – Jobless Claims / Consumer Price Index / NY and Philly Manufacturing

Friday – Industrial Production

 

 

Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC
November 11, 2012

 

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4555 Wilson Ave SW, Suite 2
Grandville, MI 49418

Phone: (616) 531-5220
rvansurksum@aamllc.com