Weekly Market Update, December 22, 2014
Presented by Manning Wealth Management
General market news
- U.S. Treasuries opened higher Monday morning. The 10-year was at 2.17 percent and the 30-year at 2.77 percent. The largest move on a relative basis was on the short end of the curve, as the 2-year moved to 0.64 percent, with new supply coming this week.
- Equity markets bounced back last week, with both the Dow Jones Industrial Average and S&P 500 Index regaining all that they had lost during the previous week. The reversal was a result, in part, of the market’s positive reaction to the final FOMC meeting of the year and the expectation that monetary policies around the world would remain easy for the foreseeable future.
- With a lack of fundamental data, the market will continue to look to macroeconomic data and events to gauge the overall health of the U.S. economy.
Equity Index | Week-to-Date % | Month-to-Date % | Year-to-Date % | 12-Month % |
S&P 500 | 4.11% | 0.28% | 14.29% | 16.24% |
Nasdaq Composite | 3.49% | 0.50% | 15.51% | 17.59% |
DJIA | 3.64% | 0.01% | 9.93% | 12.34% |
MSCI EAFE | 0.87% | 3.11% | 3.86% | 0.69% |
MSCI Emerging Markets | 0.69% | 5.77% | 3.36% | 1.98% |
Russell 2000 | 4.90% | 2.02% | 4.05% | 5.68% |
Source: Bloomberg
Fixed Income Index | Month-to-Date % | Year-to-Date % | 12-Month % |
U.S. Broad Market | 0.09% | 5.87% | 5.45% |
U.S. Treasury | 0.00% | 4.95% | 4.52% |
U.S. Mortgages | 0.02% | 6.12% | 5.76% |
Municipal Bond | 0.25% | 8.83% | 8.79% |
Source: Bloomberg
What to look forward to
The bulk of important economic data will be released early in the week. We will see both Existing Home Sales, which are projected to decrease, and New Home Sales data.
The final estimate of third-quarter 2014 GDP is expected to come in higher than previously reported, at 4.3 percent.
We will also see data on Durable Goods Orders and gain insight into the consumer sector with the release of information on Personal Income and Outlays, which are expected to continue to grow.
Disclosures: Certain sections of this commentary contain forward-looking statements that are based on our reasonable expectations, estimates, projections, and assumptions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. All indices are unmanaged and are not available for direct investment by the public. Past performance is not indicative of future results. The S&P 500 is based on the average performance of the 500 industrial stocks monitored by Standard & Poor’s. The Nasdaq Composite Index measures the performance of all issues listed in the Nasdaq Stock Market, except for rights, warrants, units, and convertible debentures. The Dow Jones Industrial Average is computed by summing the prices of the stocks of 30 large companies and then dividing that total by an adjusted value, one which has been adjusted over the years to account for the effects of stock splits on the prices of the 30 companies. Dividends are reinvested to reflect the actual performance of the underlying securities. The MSCI EAFE Index is a float-adjusted market capitalization index designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI Emerging Markets Index is a market capitalization-weighted index composed of companies representative of the market structure of 26 emerging market countries in Europe, Latin America, and the Pacific Basin. The Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000® Index. The Barclays Capital Aggregate Bond Index is an unmanaged market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities with maturities of at least one year. The U.S. Treasury Index is based on the auctions of U.S. Treasury bills, or on the U.S. Treasury’s daily yield curve. The Barclays Capital Mortgage-Backed Securities (MBS) Index is an unmanaged market value-weighted index of 15- and 30-year fixed-rate securities backed by mortgage pools of the Government National Mortgage Association (GNMA), Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (FHLMC), and balloon mortgages with fixed-rate coupons. The Barclays Capital Municipal Bond Index includes investment-grade, tax-exempt, and fixed-rate bonds with long-term maturities (greater than 2 years) selected from issues larger than $50 million. The Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index measures the performance of intermediate (1- to 10-year) U.S. TIPS.
###
Manning Wealth Management is a financial advisor and consultant office located at 2550 5th Ave Suite 800 San Diego, CA 92103. They offer securities and advisory services as an Investment Adviser Representative of Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. They can be reached at 619-237-9977 or at www.manningwm.com
Authored by the Investment Research team at Commonwealth Financial Network.
© 2014 Commonwealth Financial Network®
