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Financial Markets & Economy

EWM Weekly Capital Market Highlights for Week Ending 11/22/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • US equities traded down slightly on the week, following uncertainty in US-China trade talks as a result of tensions in Hong Kong.
  • The yield on the 10-year US Treasury Note declined from 1.83% at the start of the week to 1.77% at the end of the week.
  • The US dollar finished basically flat against a basket of currencies, sliding modestly from 97.99 to 97.91.
  • WTI crude hit its highest level in a month on November 22, trading at $58.68/barrel as of midday Friday.
  • October Federal Reserve minutes were more optimistic, citing easing, yet still elevated, geopolitical risks and trade tensions. Despite having cut the federal funds rate to a range of 1.5% – 1.75% at its late-October meeting, the central bank signaled a pause in rate cuts going forward.

Click here to download the complete weekly report: EWMWeeklyReview 11.25.19

Disclosure: Past performance is not necessarily indicative of future results.

EWM Weekly Capital Market Highlights for Week Ending 11/15/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • Stocks in the US were up slightly for the week. Large cap stocks outperformed their small cap counterparts. Meanwhile, value stocks under-performed growth stocks.
  • Short-dated Treasury yields (six months and shorter) fell slightly during the week, while longer-dated Treasury yields fell. Treasuries dated from five to 30 years fell around 10 basis points, leading to a flattening of the yield curve.
  • Developed markets stocks saw slight weakness during the week and under-performed US stocks. Growth stocks outperformed value stocks in developed markets. Emerging market stocks fell, declining by 2% during the week.
  • Volatility was up in markets, as measured by the VIX, which increased more than 7% during the week.
  • Commodity prices were largely lower for the week, led by crude oil, as OPEC indicated it was planning to maintain curbs on crude output throughout next year but would hold off on more aggressive cuts.

Click here to download the complete weekly report: EWMWeeklyReview 11.18.19

Disclosure: Past performance is not necessarily indicative of future results.

EWM Weekly Capital Market Highlights for Week Ending 11/8/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • Global equities traded higher this week, with developed markets posting modestly positive returns and international equities slightly edging out domestic stocks. Emerging markets led the way, up more than 2% on the week. Value outperformed growth across all regions.
  • The yield on the 10-Year U.S. Treasury Note pushed higher over the course of the week, beginning at 1.71% on Monday and finishing the week over 1.90% for the first time since late July.
  • The US dollar traded higher all week against a basket of currencies, riding the momentum of higher Treasury yields,  after depreciating for most of October.
  • Gold suffered its biggest weekly percentage decline in two-and-a-half years, giving up more 3% as deescalating trade tensions between the US and China have helped reinvigorate investors’ appetite for risk.
  • In other economic news, the Labor Department’s JOLTS report (which tracks monthly changes in job openings) fell 3.8% in September to 7.024 million. This is the lowest total since March of last year, and may indicate the trade war with China is beginning to takes its toll on the economy.

Click here to download the complete weekly report: EWMWeeklyReview 11.11.19

Disclosure: Past performance is not necessarily indicative of future results.

EWM Weekly Capital Market Highlights for Week Ending 11/1/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • Domestic equities rose for the week, with small cap stocks appreciating the most and growth stocks outpacing value. International equities and emerging markets stocks also ended the week in positive territory but failed to keep pace with their domestic counterparts.
  • Treasury yields across the curve were down through end-of-day Thursday, with shorter-term yields falling more than longer-term yields.
  • The US dollar weakened against a basket of major trade partners’ currencies during the week, as the Federal Reserve cut rates by 25 basis points.
  • Commodities declined for the week, as lower energy prices outweighed the upward move for gold.
  • In other economic news, US gross domestic product (GDP) grew at a rate of 1.90% for the third quarter on continued expenditures from the government and the consumer. Despite the contracting business investment, the US economy grew at a faster rate than most economists expected.

Click here to download the complete weekly report: EWMWeeklyReview 11.04.19

Disclosure: Past performance is not necessarily indicative of future results.

EWM Weekly Capital Market Highlights for Week Ending 10/25/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • US equities traded higher last week, with small caps up roughly 1.70% and large caps up 1.30%. The S&P 500 Index traded above its all-time closing high early in Friday’s trading. The emerging markets had a strong week as well, up more than 1.30%.
  • The yield on the 10-year US Treasury Note traded in a relatively narrow range this week. It reached a peak of 1.81% early Monday and a low of 1.74% on Wednesday before finishing the week at the upper end of the range.
  • The US dollar traded higher all week against a basket of currencies, reversing a downward trend that had been in place since late September.
  • Gold traded mostly sideways for the first part of the week before a rally on Thursday and Friday pushed prices up more than 1%. The precious metal has traded right around the $1,500 level since early August, after rallying roughly 15% from late-May levels.
  • Oil prices rallied more than $3 per barrel this week after the Energy Information Administration reported a surprise drop in US oil and oil product inventories on Wednesday. Prices have been rising slowly all month after falling from a three-month high in mid-September.

Click here to download the complete weekly report: EWMWeeklyReview 10.28.19

Disclosure: Past performance is not necessarily indicative of future results.

EWM Weekly Capital Market Highlights for Week Ending 10/18/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • US equities had moderate gains this week. The market sentiment was supported by decent earnings reports and news of a draft Brexit deal, but also was dampened by some weak economic data.
  • The yield on the 10-year US Treasury Note recovered from declines seen in the early part of the week and hovered around 1.75% for most of the week.
  • Gold prices rebounded from some of the small sell-off seen in the initial days of the week, as concerns about the preliminary Brexit deal’s approval by the British Parliament and weaker-than-expected US economic data drove the price upward.
  • Oil had a mixed week, as a greater-than-expected increase in the US’s stock pile amid a global slowdown drove the price down midweek. But news from the cease-fire pact in Syria and tentative Brexit deal enabled oil to regain some of the lost ground on Thursday.
  • Netflix Inc. reported revenue of $5.25 billion, up 31% from a year ago, and earnings per share of $1.47. The streaming giant also said that it had a net addition of 6.77 million paying subscribers in its third quarter. However, the company’s projections for fourth-quarter additions were lower than analysts’ expectations.

Click here to download the complete weekly report: EWMWeeklyReview 10.21.19

Disclosure: Past performance is not necessarily indicative of future results.

EWM Weekly Capital Market Highlights for Week Ending 10/11/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • US equities rallied at the end of a week of speculation on trade talks between the US and China, up between 1%-2%. Non-US equities also rose, with most major indices up 1%-2%.
  • The yield on the 10-year US Treasury Note jumped to more than 1.70% to close the week with hopes of progress in US/China trade talks. The 3-month/10-year Treasury curve was positive, a change from the inverted yield curve that historically has been a recession indicator.
  • The US dollar finished weaker against a basket of currencies, reflecting both rising expectations of a Fed rate cut later this month and optimism over a limited trade deal with China to close the week.
  • Gold fell about 2% on the week as of Friday’s trading.
  • Oil prices soared upon the news of an alleged missile attack on an Iranian tanker. Brent crude and WTI futures rose between 1.50%-2.00%.

Click here to download the complete weekly report: EWMWeeklyReview 10.14.19

Disclosure: Past performance is not necessarily indicative of future results.

EWM Weekly Capital Market Highlights for Week Ending 10/4/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • US equities began the week on a disappointing note on concerns of an economic slowdown, with all broad-level indices in negative territory. However, markets rebounded later in the week in anticipation of employment figures being released. Additionally, large caps outperformed small caps; growth outperformed value; domestic stocks outperformed international stocks; and emerging markets outperformed developed markets.
  • Flight to quality was evident in the fixed income markets earlier last week, as the yield on the 2-year U.S. Treasury Note, which is highly sensitive to the outlook for Fed policy, fell to 1.38%, its lowest level since 2017. The 10-year Treasury yield declined to 1.53%, while the 30-year Treasury yield tumbled to 2.05% in the aftermath of weak manufacturing data.
  • Oil prices declined throughout the week on news of an unexpected rise in US crude supplies and concerns about overall global demand. The weak economic data led to a rally in gold but hit a roadblock later in the week after optimistic employment figures were released.
  • US Dollar Index traded lower during the week, after scaling a 30-day high on October 1. Since then, it drifted down, as investors lowered their expectations for the Fed to cut rates after Friday’s job report.

Click here to download the complete weekly report: EWMWeeklyReview 10.7.19

Disclosure: Past performance is not necessarily indicative of future results.

EWM Weekly Capital Market Highlights for Week Ending 9/27/19

By Financial Markets & Economy, Weekly Capital Market Updates
  • US equities experienced some volatility throughout the week, with the S&P 500 Index breaking the 3,000 level on Tuesday but subsequently trending lower. On the domestic front, larger capitalization stocks outperformed small caps, while international developed markets outperformed emerging markets.
  • The yield on the 10-year U.S. Treasury Note decreased slightly over the course of the week, settling at a rate around 1.70%.
  • Commodities were generally lower in the week, with oil at the center of investors’ attention. The WTI slipped to its lowest level in a 10-week span as concerns for global demand persisted.
  • Consumer confidence rose in September relative to August levels, according to the University of Michigan’s Index for Consumer Sentiment.
  • The Personal Consumption Expenditures Price Index (PCE), a Federal Reserve (the Fed) favorite for measuring inflation, rose slightly on a monthly basis and was up 1.80% year over year for August. This reading is below the Fed’s 2% inflation target.

Click here to download the complete weekly report: EWMWeeklyReview 9.27.19

Disclosure: Past performance is not necessarily indicative of future results.

EWM Weekly Capital Market Highlights for Week Ending 9/20/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • Among equities, large caps outperformed small caps; value stocks led growth stocks; domestic stocks under performed international stocks; and emerging markets under performed developed markets.
  • Treasury yields trended downward during the week. The yield on the 10-Year U.S. Treasury Note fell roughly eight basis points during the week and ended around 1.76%.
  • Commodity indices were mixed during the week. Crude oil prices spiked early in the week but returned to prior-week levels by the week’s end. Natural gas prices marginally declined, while gold and silver prices held roughly flat throughout the week.
  • The US dollar increased over the week despite the Fed lowering interest rates. The resilient US economy and low inflation have bolstered the currency’s safe-haven status.
  • Among economic data released last week, August housing starts surged past expectations, with 1.4 million starts recorded after only 1.3 million were expected. Additionally, jobless claims for the week of September 14 came in lower than consensus estimates, indicating the job market remains robust.

Click here to download the complete weekly report: EWMWeeklyReview 9.20.19

Disclosure: Past performance is not necessarily indicative of future results.