AAM Weekly Market Wrap – December 20, 2021

Weekly Market Wrap: Stocks fell for the fourth time in the last 6 weeks as concerns over the Omicron variant and Fed tapering sent shares lower.

For The Week

  • The S&P 500 fell 1.94% to 4,620.64
  • Oil lost 1.24% to $70.72
  • Gold gained 0.80% to $1,797.20
  • The US dollar rose 0.58% at $96.62 other major world currencies.

2021 Year-To Date for the major indexes:

  • The S&P Index +23.02%
  • The Dow Jones Index +15.55%
  • The NASDAQ Index +17.70%
  • The Russell 2000 Small cap Index +10.08%
  • EAFE International Index +5.04%
  • 10 Year Treasury Yield is 1.41%, lower for the week and higher for the year
  • 30 Year Treasury Yield is 1.82%, lower for the week and higher for the year
  • WTI Crude Oil Index +45.75%
  • Bloomberg Gold Index -5.43%
  • The Dollar Index +7.43% against other major world currencies

Monday the S&P 500 lost 43 points on moderate volume with no major data reported.

Tuesday stocks dropped 35 points on moderately heavy volume as producer prices rose more than expected and small business optimism rose.

Wednesday the S&P 500 rebounded 76 points on heavy volume as mortgage applications fell, NY manufacturing rose and beat, both import and export prices rose, homebuilder sentiment rose and matched expectations, retail sales rose but missed while the FOMC left rates unchanged but indicated a quicker taper to remove economic stimulus.

Thursday stocks lost 41 points on heavy volume as jobless claims were higher than expected, continuing claims were lower, both building permits and housing starts rose and beat estimates, industrial production rose and missed while capacity utilization rose but matched expectations.

Friday the S&P 500 dropped 48 points on very heavy volume with no major data reported.

Mortgage rates were mixed last week. The national averages as reported by Bankrate.com indicate a 15-year rate of 2.52% and a 30-year rate of 3.25%. These rates are as of 12/20/2021 and may include points.

What to watch for on the economic calendar this week:

Monday – Leading Economic Indicators

Tuesday – No major data

Wednesday – Mortgage Applications / 3rd Quarter GDP Final Estimate / Existing Home Sales / Consumer Confidence

Thursday – Jobless Claims / Durable Goods Orders / New Home Sales / PCE Prices / Personal Income and Spending / Consumer Sentiment

Friday – No major data

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

December 20, 2021

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