Weekly Market Wrap: Stocks finished higher last week with high trading volumes and volatility as the Fed indicated that it may start raising rates in March and 4th quarter GDP (first estimate) beat expectations.
For The Week
• The S&P 500 rose 0.77% to 4,431.85
• Oil added 1.97% to $86.82
• Gold lost 2.23% to $1,789.20
• The US dollar gained 2.21% at $97.26 other major world currencies.
2022 Year-To Date for the major indexes:
• The S&P Index -7.07%
• The Dow Jones Index -4.44%
• The NASDAQ Index -11.98%
• The Russell 2000 Small cap Index -12.33%
• EAFE International Index -5.02%
• 10 Year Treasury Yield is 1.77%, higher for the week and higher for the year
• 30 Year Treasury Yield is 2.08%, higher for the week and higher for the year
• WTI Crude Oil Index +15.44%
• Bloomberg Gold Index -2.29%
• The Dollar Index +1.75% against other major world currencies
Monday the S&P 500 rose 12 points on very heavy volume with no major data reported.
Tuesday stocks dropped 54 points on heavy volume as consumer confidence fell but beat while both FHFA and Shiller home prices rose.
Wednesday the S&P 500 lost 7 points on very heavy volume as mortgage applications fell, new home sales rose and beat expectations and the Federal Reserve left rates unchanged but set the table for rate hike beginning as soon as March.
Thursday stocks dropped another 23 points on very heavy volume as jobless claims fell and matched but remain slightly elevated, continuing claims were higher, durable goods orders fell a little more than expected, pending home fell more than expected while 4th quarter GDP, first estimate was higher than expected at 6.9%.
Friday the S&P 500 rebounded 105 points on heavy volume as employment costs rose a little less than expected, PCE prices rose and matched, personal income rose a little less than estimated, personal spending fell and matched while consumer sentiment fell and missed expectations.
Mortgage rates continued higher last week. The national averages as reported by Bankrate.com indicate a 15-year rate of 3.09% and a 30-year rate of 3.74%. These rates are as of 1/31/2022 and may include points.
What to watch for on the economic calendar this week:
Monday –Midwest Manufacturing
Tuesday – ISM Manufacturing / Construction Spending
Wednesday – Mortgage Applications / ADP Employment
Thursday – Jobless Claims / Factory Orders / ISM Non-Manufacturing / Worker Productivity / Unit Labor Costs
Friday – January Jobs Report
Ronald J. VanSurksum, CFP® Advanced Asset Management, LLC
January 31, 2022