December 11, 2017
Equities Climb to New Record Highs
December 11, 2017 – The S&P 500 Index extended gains for a third week, after a stronger-than-expected November jobs report on Friday provided relief to a host of uncertainties and struggles the markets experienced earlier in the week. Labor Department officials said the economy created 228,000 new jobs last month, topping economists’ consensus forecast for 195,000. The headline unemployment rate held steady at a 17-year low of 4.1%, while wage growth remained tepid, rising just 0.2% in November and up 2.5% year-over-year. Overall jobs data helped steepen the Treasury yield curve, led by a pick-up in long-end yields, and thus provided a positive sign for economic growth. Investor sentiment also brightened after U.K. and European Union officials struck a deal to unlock further Brexit talks and the U.S. Congress approved a two-week stop-gap spending measure to avert a government shutdown.
In other key economic data released last week, U.S. factory orders declined by 0.1% in October, which was better than expectations for a 0.4% pullback. Meanwhile, September factory orders were upwardly revised to 1.7% from 1.4% previously reported. The U.S. trade deficit widened 8.6% to a nine-month high in October as imports rose 1.6% to a record $244.6B, while exports were unchanged at $195.9B. The ISM’s non-manufacturing (service sectors) activity index fell to 57.4 from a twelve-year high of 60.1 in October. Worker productivity climbed by 3% during the third quarter, shy of forecasts for a 3.3% increase. Lastly, new claims for unemployment benefits unexpectedly declined last week, falling by 2,000 to 236,000, capping a third week of declines and the 144th consecutive week below 300,000 – a level consistent with a strong jobs market.
For the week, the S&P 500 gained 0.39%, the Dow Industrials rose 0.40% and, despite gains in technology companies, the NASDAQ Composite slipped 0.10%. The S&P 500 and Dow Industrials ended at new record highs. Small cap companies underperformed, with the Russell 2000 Index ending the week with a 0.97% loss. Seven of the 11 major sector groups posted gains last week, led by Financials (+1.52%), Industrials (+1.38%) and Consumer Staples (+0.68%). Technology (+0.08%) rose the least, while Utilities (-0.96%) and Real Estate (-0.95%) lagged the most among decliners. West Texas crude oil futures fell $1 per barrel last week, ending at $57.36, while a stronger U.S. dollar, up all five days last week, pressured gold and other metals lower. Gold fell 2.5% last week, ending at $1,248.50 and the U.S. Dollar Index climbed 1.09% to end at 93.901. Treasury prices eased, sending the yield on 10-year Treasury bonds up just 1.5 basis points to 2.377%.
What We’re Reading
These links to outside web sites are provided as a courtesy and are not under the control of Tower Square Investment Management LLC. For more details, please see the “Disclosures” section.
Week’s Economic Calendar
Monday, December 11: Job Openings (JOLTS);
Tuesday, December 12: Small Business Optimism, Producer Prices, FOMC Meeting begins;
Wednesday, Deecmber 13: Mortgage Activity, Consumer Prices, FOMC Policy Decisions (2 pm ET), Fed Chair Janet Yellen’s Press Conference (2:30 pm ET);
Thursday, Dececmber 14: Jobless Claims, Retail Sales, Import/Export Prices, Business Inventories;
Friday, December 15: Empire State Manufacturing Survey, Industrial Production.
Includes a broad overview of the week's economic and world updates with direct market insight with a market table, weekly economic calendar, points of view and words of wisdom.
weekly market update
January 5, 2016
Happy New Year. Your weekly Vantage Point is excellent. Thanks for including me.
Securities offered through First Allied Securities, Inc., a registered broker/dealer, Member: FINRA/SIPC. Advisory services offered through First Allied Advisory Services, Inc. and Premier Wealth Advisors, LLC, both registered investment advisers. Premier Wealth Advisors, LLC is not affiliated with First Allied Securities, Inc. or First Allied Advisory Services, Inc.
Copyright © 2015 Cetera Financial Group, Inc., RCS Capital Corporation's (NYSE:RCAP) retail investment advice platform.
All rights reserved.
200 N. Sepulveda Blvd, Ste 1200, El Segundo, CA 90245
This message is compiled by Tower Square Investment Management
No independent analysis has been performed and the material should not be construed as investment advice. Investment decisions should not be based on this material since the information contained here is a singular update, and prudent investment decisions require the analysis of a much broader collection of facts and context. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The opinions expressed are as of the date published and may change without notice. Any forward-looking statements are based on assumptions, may not materialize, and are subject to revision.
All economic and performance information is historical and not indicative of future results. The market indices discussed are unmanaged. Investors cannot directly invest in unmanaged indices. Please consult your financial advisor for more information.
The return and principal value of bonds fluctuate with changes in market conditions. If bonds are not held to maturity, they may be worth more or less than their original value. The yield on high yield bonds is due, in part, to the volatility and risk of the high securities market. High yield bonds are also known as "junk bonds".
Additional risks are associated with international investing, such as currency fluctuations, political and economic instability, and differences in accounting standards.
Affiliates and subsidiaries and/or officers and employees of Cetera Financial Group or Cetera firms may from time to time acquire, hold or sell a position in the securities mentioned herein.
While diversification may help reduce volatility and risk, it does not guarantee future performance.
DJIA is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq.
The S&P 500 is an index of 500 stocks chosen for market size, liquidity and industry grouping (among other factors) designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe.
The MSCI EAFE Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada.
The Barclays US Aggregate bond index is an unmanaged index composed of Barclays Credit government bond index, mortgage backed securities index, and asset backed securities index and is generally representative of the US Bond market.
CRB Index: A pricing index that measures changes in the price of 22 commodities that are believed to be among the first to react to changes in economic conditions.
The S&P GSCI Gold Index, a sub-index of the S&P GSCI, provides investors with a reliable and publicly available benchmark tracking the COMEX gold future.
The S&P GSCI Crude Oil Index is a sub-index of the S&P GSCI and provides investors with a publicly available benchmark for investment performance in the crude oil market.
The Caixin Flash China General Manufacturing Purchasing Managers' Index™ (PMI™) is published on a monthly basis ahead of final PMI data, making the Caixin PMI the earliest available indicator of manufacturing sector operating conditions in China. The estimate is typically based on approximately 85%-90% of total PMI survey responses each month and is designed to provide an accurate indication of the final PMI data.
Tower Square Investment Management is part of Cetera Financial Group, Inc. Cetera Financial Group, Inc. has a network of independent broker-dealers, investment advisers registered with the SEC, and general insurance agencies.
Tower Square Investment Management is wholly owned by Cetera Financial Group, Inc., which is wholly owned by Cetera Financial Holdings, Inc. Cetera Financial Holdings, Inc. is principally owned by RCS Capital Corporation (RCAP). For a more detailed description of RCS Capital, please visit www.rcscapital.com.
Tower Square Investment Management provides investment management and advisory services to a number of programs sponsored by affiliated and non-affiliated registered investment advisers. Please ask your investment adviser representative for the Form ADV Part 2A/Appendix 1 they are authorized to offer you.
Nothing in these materials should be construed as offering or disseminating specific investment, tax, or legal advice to any individual without the benefit of direct and specific consultation with an investment adviser representative authorized to offer Tower Square Investment Management services. Information contained herein shall not constitute an offer or a solicitation of any services.