AAM Market Wrap – August 24 2012

Weekly Market Wrap:  Stocks slipped as global growth concerns rose again on a very slow trading week.

For The Week

  • The S&P 500 Index -0.50% to 1,411.13
  • Oil -1.04% to $96.15
  • Gold +3.31%  to $1,669.34
  • Dollar -1.11% to $81.60

Year-To-Date for the major indexes:

 

  • The S&P index +12.21%
  • The Dow Jones Index +7.70
  • The NASDAQ Index +17.84%
  • The Russell 2000 Small cap Index +9.20%
  • EAFE International Index +5.11%
  • 10 Year Treasury Yield at 1.68%
  • 30 Year Treasury Yield at 2.79%
  • WTI Crude Oil Index -2.9%
  • Bloomberg Gold Index +6.73%
  • Dollar Index +1.69%

 

On Monday stocks were flat on light volume with no economic releases or major news.

Tuesday stocks slipped 5 points on light volume as Spain completed a positive debt auction.

Wednesday stocks added less than 1 point on light volume as the FOMC positioned itself for another round of stimulus (QE3) if the economy does not improve significantly.  Existing home sales rose but missed expectations and mortgage applications declined.

Thursday stocks dropped 11 points on light volume as global growth concerns continued to pressure stocks as China and Europe showed continued slowing.  In the US manufacturing rose slightly, new home sales beat expectations and jobless claims rose.

Friday stocks rebounded 9 points on light volume as a mixed US durable goods order report leads to hopes of more global stimulus.

 

 

 

Takeaways from this week:

  • Light trading volumes all week as the summer comes to a close and little economic data to move stocks.
  • US home data continues to move in a positive direction as existing home sales and new home sales increase for July.
  • It appears as though more stimulus is imminent with the FOMC reinforcing its latest commitment to the economy.

 

Mortgage rates declined this week.  The national averages as reported by Bloomberg indicate a 15-year rate of 2.91% and a 30-year rate of 3.55%. These rates are as of 08/24/2012 and may include points.

 

What to watch for on the economic calendar next week:
Monday –Dallas area manufacturing
Tuesday –Home Prices / Consumer Confidence
Wednesday – Revised 2Q GDP / Pending Home Sales / Fed Beige Book
Thursday – Weekly Jobless Claims / Personal Income and Outlays
Friday – Factory Orders / Consumer Sentiment / Chicago PMI

 

 

Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC
August 27, 2012