AAM Weekly Market Wrap – January 10, 2022

Weekly Market Wrap: The S&P 500 began 2022 on a down note as the Federal Reserve indicated a faster taper and rate hike schedule for 2022 and the 10-year treasury rates surged.

For The Week

  • The S&P 500 fell 1.87% to 4,677.03
  • Oil gained 4.91% to $78.90
  • Gold fell 2.01% to $1,794.40
  • The US dollar rose 0.17% at $95.75 other major world currencies.

2022 Year-To Date for the major indexes:

  • The S&P Index -1.87%
  • The Dow Jones Index -0.29%
  • The NASDAQ Index -4.53%
  • The Russell 2000 Small cap Index -2.92%
  • EAFE International Index +0.11%
  • 10 Year Treasury Yield is 1.77%, higher for the week and higher for the year
  • 30 Year Treasury Yield is 2.11%, higher for the week and higher for the year
  • WTI Crude Oil Index +4.91%
  • Bloomberg Gold Index -2.01%
  • The Dollar Index +0.17% against other major world currencies

Monday the S&P 500 jumped 30 points on light volume as construction spending rose a little less than expected.

Tuesday stocks slipped 3 points on heavy volume as ISM manufacturing fell and missed estimates.

Wednesday the S&P 500 dropped 93 points as mortgage applications fell, ADP employment rose and beat while the Fed indicated a faster taper and rate increase timeline.

Thursday stocks fell 5 points on heavy volume as jobless claims rose more than expected, continuing claims were higher, factory orders rose and beat while ISM non-manufacturing fell and missed expectations.

Friday the S&P 500 lost 19 points on heavy volume as the December payrolls added a lower than expected 199,000 jobs, unemployment fell to 3.9% beating estimates, average hourly earnings rose to a higher than expected 0.6% and consumer credit use rose and beat expectations.

Mortgage rates were higher last week. The national averages as reported by Bankrate.com indicate a 15-year rate of 2.62% and a 30-year rate of 3.353%. These rates are as of 1/10/2022 and may include points.

What to watch for on the economic calendar this week:

Monday – No major data

Tuesday – Small Business Optimism

Wednesday – Mortgage Applications / Consumer Prices

Thursday – Jobless Claims / Producer Prices

Friday – Retail Sales / Import & Export Prices / Capacity Utilization / Industrial Production / Consumer Sentiment

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

January 10, 2022

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