AAM Weekly Market Wrap – May 25 2015

Weekly Market Wrap: Stocks moved higher for the third week in a row as leading economic indicators continued to rise and inflation remained tame.

 

For The Week

  • The S&P 500 added 0.16% to 2,126.06
  • Oil gained 0.05% to $59.72
  • Gold slipped 1.58% to $1,205.57
  • The US Dollar jumped 3.21% at $96.24 against other major world currencies.

 

2015 Year-To Date for the major indexes:

 

  • The S&P Index +3.26%
  • The Dow Jones Index +2.29%
  • The NASDAQ Index +7.46%
  • The Russell 2000 Small cap Index +3.94%
  • EAFE International Index +11.74%
  • 10 Year Treasury Yield is 2.21%, higher for the week and higher for the year
  • 30 Year Treasury Yield is 2.98%, higher for the week and higher for the year
  • WTI Crude Oil Index +12.11%
  • Bloomberg Gold Index +1.91%
  • The Dollar Index +6.60% against other major world currencies

 

SandPweek

 

Monday the S&P 500 index added 6 points on moderate volume as Greece continued to struggle with debt and in the US homebuilder sentiment fell.

Tuesday the index slipped 1 point on moderate volume as housing construction rose and beat.

Wednesday the index fell 2 points on moderate volume as mortgage applications fell and Fed meeting notes indicated that a June rate hike is most likely off the table but could occur any time after that.

Thursday the S&P index gained 5 points on moderate volume as weekly jobless claims rose but remain at relatively low levels, manufacturing data missed but still expanded, existing home sales missed and leading indicators beat expectations thanks to a surge in building permits.

Friday the markets fell 5 points on moderately-light volume as consumer prices were up less than expected but inflation pressures may be building in some of the details of the data.

 

Takeaways from this week:

  • Interest rates remained at the high end of this year’s range.
  • The Fed maintained a “wait and see” approach to rate hikes waiting for data to support a move higher.
  • US data was mostly positive on the week.
  • Global stocks slipped this week but are still out-performing US stocks in 2015.

 

Mortgage rates were lower on the week.  The national averages as reported by Bankrate.com indicate a 15-year rate of 3.12% and a 30-year rate of 3.96%. These rates are as of 05/25/2015 and may include points.

 

What to watch for on the economic calendar this week:


Monday –Markets Closed

Tuesday – Durable Goods Orders / Home Prices / New Home Sales / Consumer Confidence

Wednesday –Mortgage applications

Thursday – Jobless Claims / Pending Home Sales

Friday – GDP / Consumer Sentiment / Chicago PMI

 

 

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

May 25, 2015