AAM Weekly Market Wrap – May 29, 2017

Weekly Market Wrap: Stocks rebounded higher after 2 down weeks as the focus was back on mostly positive economic data and corporate profits.

 

For The Week

  • The S&P 500 gained 1.43% to 2,415.82
  • Oil dropped 1.72% to $49.80
  • Gold gained 0.99% to $1,267.44
  • The US dollar rose 0.32% at $97.45 against other major world currencies.

 

2017 Year-To Date for the major indexes:

 

  • The S&P Index +7.91%
  • The Dow Jones Index +6.67%
  • The NASDAQ Index +15.36%
  • The Russell 2000 Small cap Index +1.85%
  • EAFE International Index +14.41%
  • 10 Year Treasury Yield is 2.25%, higher for the week and lower for the year
  • 30 Year Treasury Yield is 2.91%, higher for the week and lower for the year
  • WTI Crude Oil Index -7.30%
  • Bloomberg Gold Index +9.98%
  • The Dollar Index -4.74% against other major world currencies

 

 

 

 

Monday the S&P Index jumped 12 points on moderate volume with no major data reported.

Tuesday the index gained 4 points on moderate volume as the PMI Manufacturing Flash rose more than expected and new home sales fell and missed expectations.

Wednesday the index added 6 points on moderately-light volume as mortgage applications rose led by refinances, FHFA home prices rose a little more than expected, existing home sales fell and missed estimates while the FOMC meeting resulted in no change in interest rates and will continue to slowly unwind their balance sheet.  Overseas China’s credit rating was downgraded.

Thursday the S&P 500 rose 11 points on moderate volume as jobless claims rose but less than expected.

Friday the index added 1 point on light volume as durable goods orders fell but beat expectations, 1Q GDP was revised higher to 1.2% and beat expectations, 1Q profits rose 12% and consumer sentiment fell and missed estimates.

 

Takeaways from this week:

  • Stocks moved back to all-time highs as political tensions eased and the focus was back on the US economy.
  • Treasury yields were little changed this week and remained near lows for 2017.
  • World stocks ended slightly lower but continued to lead with US tech stocks in 2017.

 

Mortgage rates were slightly lower on the week.  The national averages as reported by Bankrate.com indicate a 15-year rate of 3.05% and a 30-year rate of 3.81%. These rates are as of 5/29/2017 and may include points.

 

What to watch for on the economic calendar this week:


Monday – Markets closed

Tuesday – Personal Income and Outlays / Shiller Home Prices / Consumer Confidence

Wednesday – Mortgage Applications / Pending Home Sales / Motor Vehicle Sales

Thursday – Weekly Jobless Claims / ADP Employment / Productivity and Costs / PMI Manufacturing / ISM Manufacturing / Construction Spending

Friday – May Employment Situation

 

 

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

May 29, 2017