AAM Weekly Market Wrap – May 22, 2017

Weekly Market Wrap: Stocks moved lower for the second straight week as political turmoil created doubt about the implementation of the Trump economic agenda.

 

For The Week

  • The S&P 500 slipped 0.38% to 2,381.73
  • Oil jumped 5.92% to $50.67
  • Gold gained 2.21% to $1,254.96
  • The US dollar lost 2.10% at $97.14 against other major world currencies.

 

2017 Year-To Date for the major indexes:

 

  • The S&P Index +6.38%
  • The Dow Jones Index +5.27%
  • The NASDAQ Index +13.01%
  • The Russell 2000 Small cap Index +0.75%
  • EAFE International Index +14.52%
  • 10 Year Treasury Yield is 2.24%, lower for the week and lower for the year
  • 30 Year Treasury Yield is 2.90%, flat for the week and lower for the year
  • WTI Crude Oil Index -5.68%
  • Bloomberg Gold Index +8.90%
  • The Dollar Index -5.04% against other major world currencies

 

 

 

 

Monday the S&P Index gained 11 points on moderate volume as NY Manufacturing contracted and missed expectations while the housing market index rose and beat estimates.  Overseas Chinese data disappointed.

Tuesday the index lost 2 points on moderate volume as both housing starts and building permits fell and missed expectations while industrial production rose and beat estimates posting its strongest gains since February 2014.

Wednesday the index dropped 44 points on heavy volume as mortgage applications fell and the Washington rhetoric escalated threatening the Trump economic policy.

Thursday the S&P 500 rebounded 9 points on moderately-heavy volume as jobless claims fell more than expected while leading economic indicators rose and matched expectations.

Friday the index added 16 points on moderately-heavy volume with no major data released.

 

Takeaways from this week:

  • Stocks pulled back on the dysfunction in Washington.
  • Treasury yields were lower this week and near lows for 2017.
  • World stocks ended higher and continued to lead in 2017.

 

Mortgage rates were lower on the week.  The national averages as reported by Bankrate.com indicate a 15-year rate of 3.07% and a 30-year rate of 3.85%. These rates are as of 5/22/2017 and may include points.

 

What to watch for on the economic calendar this week:


Monday – No major data

Tuesday – PMI Manufacturing Flash / New Home Sales

Wednesday – Mortgage Applications / FHFA Home Prices / Existing Home Sales / FOMC Minutes

Thursday – Weekly Jobless Claims

Friday – Durable Goods Orders / 1Q GDP / Corporate Profits / Consumer Sentiment

 

 

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

May 22, 2017