EWM Weekly Capital Market Highlights For Week Ended 2/8/2019

By | Financial Markets & Economy, Weekly Capital Market Updates
  • Equities faced selling pressure Thursday and Friday on news that President Trump will not meet with Chinese President Xi prior to the March 1 deadline. Markets appear to be in a holding period as investors await further news on a US/China trade deal, Brexit, and a bipartisan resolution to prevent another government shutdown.
  • The yield on the 10-year U.S. Treasury Note increased to 2.73% on Tuesday before declining below 2.65% on Thursday and Friday.
  • British Prime Minister Theresa May was in Brussels for meetings with other EU leaders to avoid a hard Brexit, which is 50 days out.
  • Bill Gross announced his retirement this week. The investor once known as the “Bond King” co-founded PIMCO in 1971 and managed client assets for more than forty years, most recently at Janus.
  • Among major economic data, initial jobless claims fell from a one-and-a-half -year high last week, decreasing by 19,000 to 234,000.

Click here to download the complete weekly report: EWMWeeklyReview02.11.2018

EWM Weekly Capital Market Highlights for Week Ended 2/1/2019

By | Financial Markets & Economy, Weekly Capital Market Updates
  • Global equity markets rose broadly this week. US markets were led by the tech-heavy NASDAQ on the tailwinds of positive earnings from a number of FAANG companies. International stocks were largely higher; however, they trailed emerging markets, which posted strong returns for the week, with Brazil contributing significantly, while Greece and India detracted marginally.
  • Treasury yields fell this week, primarily due to the Fed’s vowing “patience” in monetary policy. However, yields rose marginally on Friday morning, trimming the decline, after the December employment report showed stronger-than-expected US job gains and the yield on the 30-year U.S. Treasury bond rising back above 3%.
  • Commodities rose, with the Bloomberg Commodity Index finishing slightly higher after an overall positive week. Within the index, oil prices jumped along with the stock market on Friday, after the US monthly job report showed a surge in employment. Oil futures also headed higher, as US sanctions on Venezuela’s stateowned oil firm, PDVSA, raised the risk of tighter crude supplies.
  • The US dollar ended the week lower against a basket of major trade partners’ currencies. The Deutsche Bank Long US dollar index fell .73%, likely pressured by the Fed’s cautious US economic outlook, suggesting the central bank may be near the end of its tightening cycle.
  • In other economic news, the US gained 304,000 new jobs in January, the biggest increase in almost a year and marking 100 consecutive months of employment gains. The unemployment rate, while still historically low, drifted marginally higher to 4.00%, likely a byproduct of the combination of a higher labor force participation rate and the government shutdown.

Click here to download the complete weekly report: EWMWeeklyReview02.04.2018

EWM Weekly Capital Market Highlights for Week Ended 1/25/2019

By | Financial Markets & Economy, Weekly Capital Market Updates
  • Equity markets indices were generally down across the board. Domestic indices were not able to recoup Tuesday’s losses.
  • Volatility persists in the market. Even though the CBOE Volatility Index (VIX) was down during the week, it remains above its historical average.
  • Mortgage rates remained flat during the week, causing the stocks of home-building companies to rise.
  • Commodity prices rose despite the decline in oil prices.
  • Treasury yields ticked slightly higher, but uncertainty about ongoing trade negotiations and the government shutdown are cause for some concern.

Click here to download the complete weekly report: EWMWeeklyReview 1.28.19

EWM Weekly Capital Market Highlights for Week Ended 1/18/2019

By | Financial Markets & Economy, Weekly Capital Market Updates
  • Domestic equities traded higher, helped by an end-of-the-week boost. Large capitalization stocks outperformed smaller capitalization stocks, while growth generally outperformed value. International equities also ended higher, with Emerging Markets outperforming Developed stocks.
  • Treasury yields rallied after positive news on US/China trade. The yield on the US 10-year Treasury Note reached 2.79%, up from last week’s 2.70% close.
  • Oil prices increased supported by OPEC cuts in December, which showed their collective output fell by more than 751,000 barrels a day in the month. The West Texas Intermediate is approximately 3% higher than the previous week.
  • Tesla shares dropped as much as 9% during Friday trading, as CEO Elon Musk called for 7% job cuts, citing price competition as a headwind for future growth.
  • In other economic news, unemployment came in at 3.9%in December, and wages rose a solid 3.2% last year, all while the Federal Reserve’s preferred gauge of inflation, after removing food and energy, rose 1.9% as of November over the prior year.

Click here to download the complete weekly report: EWMWeeklyReview 1.22.19

EWM Weekly Capital Market highlights for Week Ended 1/11/2019

By | Financial Markets & Economy, Weekly Capital Market Updates
  • Asian stocks rallied to five-week highs on Friday, tracking positive sentiments from US-China trade talks, whereas European markets remained flat by the end of Thursday’s trading session, as automakers announced job cuts.
  • The yield on the 10-year Treasury Note traded higher during the week, reaching 2.74% on Thursday. The yield increased seven basis points in four trading days, and the yield on the 30-year Treasury bond increased by three basis points to 3.06%.
  • The US Dollar hit a three-month low in the middle of the week before stabilizing on Thursday
  • Oil prices traded considerably higher for the week until Thursday. West Texas Intermediate crude futures have risen nearly 25% since their December lows. Oil has risen for its tenth consecutive session, making it the longest rally since 2010.
  • Department store chain Macy’s shares fell more than 17% on Thursday. The sell-off was triggered after Macy’s cut its earning forecast for the year, following disappointing holiday sales. The dismal sales numbers also prompted a broader sell-off across the retail industry.
  • Among major economic data, the ISM Non-Manufacturing Index slipped to 57.6% in December from the 60.7% reading in November. Initial unemployment claims decreased by 17,000 to 216,000 for the week ending January 5.

Click here to download the complete weekly report: EWMWeeklyReview 1.14.19

EWM Weekly Capital Market highlights for Week Ended 1/4/2019

By | Financial Markets & Economy, Weekly Capital Market Updates
  • The holiday-shortened week was led by a sharp rally in Latin America, primarily Brazil and Argentina. US equities rebounded sharply on Friday’s strong jobs report to end the week nearly unchanged. European equities also rebounded to end the week generating modest gains (0.5-1.0%)
  • Treasury yields were lower, even after a strong rally on Friday. Yields on five- and ten-year issues were up roughly ten basis points on Friday in response to the jobs report, but still ended the week lower by five and ten basis points, respectively.
  • The US Dollar Index was down slightly this week. Thursday’s sharp equity market selloff took the trade-weighted dollar down with it. A brief rally on Friday in conjunction with the equity markets fizzled out.
  • Crude oil had its best week since the end of the third quarter, up roughly 6%. The advance was driven by lower-than-expected changes in US stockpiles and hopes for settlement of trade issues with China.
  • Among other economic data released this week: US manufacturing grew at the slowest pace in nearly two years, as indicated by the ISM Index falling to 54.1% from November’s reading of 59.3%.

Click here to download the complete weekly report: EWMWeeklyReview 1.7.19

EWM Weekly Capital Market highlights for Week Ended 12/28/2018

By | Financial Markets & Economy, Weekly Capital Market Updates
  • Among Equities, large caps underperformed small caps; growth stocks led value stocks; domestic stocks outperformed international stocks; and emerging markets outperformed developed markets.
  • Treasury yields trended downward during the week. The yield on the 10- Year Treasury Note fell roughly five basis points during the week and ended around 2.74%.
  • Commodity indices were mixed during the week. Crude oil and natural gas both declined marginally, and gold and silver prices steadily increased throughout the week.
  • The US dollar declined over the week. The Federal government shutdown and weaker economic indicators weighed on the currency.
  • Among economic data released this week, consumer confidence fell more than expected as consumers indicated increased unease over the outlook for economic growth in 2019. Jobless claims for the week ending December 22 declined faintly to 216,000, but still remained within consensus expectations.

Click here to download the complete weekly report: EWMWeeklyReview 12.28.18

EWM Weekly Capital Market Highlights for Week Ended 12/21/2018

By | Financial Markets & Economy, Weekly Capital Market Updates
  • Domestic equities traded mostly lower over the week, with the S&P 500 Index on track for its worst year since 2008. Value stocks outpaced growth stocks, but both were sold pretty heavily. International and emerging markets equities outpaced domestic stocks.
  • December selloff continues. With Christmas around the corner and no Santa Claus rally in sight, stocks continued to face selling pressure this week. The Dow Jones Industrial Average is on track for its worst December since 1931, and more than the half of the S&P 500 Index stocks have entered bear market territory, defined as a decline of greater than 20% from their high. Some of the largest stocks in bear territory include Amazon (AMZN), Apple (AAPL), Bank of America (BAC), Walmart (WMT), Exxon Mobil (XOM), and AT&T (ATT), among others.
  • The yield on the 10-Year Treasury Note traded lower on the week, reaching 2.75% on Thursday, its lowest level in nine months, and the yield on the 30-Year Treasury Bond traded below 3%.
  • Gold was higher, as investors flocked to the safe haven asset. Oil traded lower. Commodities as a whole were lower, but outpaced domestic equities.
  • Bitcoin marked the one-year anniversary of its all-time high near $20,000, and is down more than 80% since this week last year.
  • The Federal Reserve raised its benchmark rate. On Wednesday, the Federal Open Market Committee (FOMC) voted to increase the federal funds rate 25 basis points to 2.25%-2.50%, its fourth increase in 2018 and ninth since 2015. The Fed also cut its projection for 2019 rate hikes to two from three, but with a less dovish tone in its messaging.

Click here to download the complete weekly report: EWMWeeklyReview 12.21.18

EWM Weekly Capital Market Highlights for Week Ended 12/14/2018

By | Financial Markets & Economy, Weekly Capital Market Updates

US equities traded sideways most of the week, but succumbed to global growth worries on Friday to close the week in red. Emerging markets also lost ground for the week, affected by China’s economic data miss. The weaker-than-expected economic data pushed European stocks lower on Friday, but they still managed to log a small increase for the week.

Treasury yields ticked higher across the curve, with the yield on the 10-year note up four basis points. The yield curve continued to flatten. curve with the yield on the 10-year note up four basis points. The yield curve continued to flatten.

The dollar gained ground during the week, reflecting investor fears of an economic slowdown in China,and was further supported by weakness in the euro and pound.

Commodity prices fell on concerns of weaker demand and a stronger dollar. Energy continued to face weakness on fears of oversupply and slower demand coming from China. Gold also eased as the dollar rose.

US producer prices unexpectedly rose in November, as increases in the costs for services offset a sharp decline for energy products. The core Consumer Price Index, which excludes volatile food and energy costs, rose 0.2% from the prior month and 2.2% from a year earlier. Initial jobless claims dropped to 206,000, a decrease of 27,000 from the previous week’s revised level of 233,000.


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EWM Weekly Capital Market Highlights for Week Ended 12/07/2018

By | Financial Markets & Economy, Weekly Capital Market Updates

Domestic equities were down for the week, with small cap stocks falling the most. International equities ended the week in negative territory as well, with emerging markets stocks outperforming their developed counterparts.

Treasury yields were mixed through end of day Thursday, with longer-term yields falling more than ten basis points, whereas shorter yields rose, leading to a flatter yield curve.

The US dollar weakened during the week, as the yield on the 10-Year Treasury Note fell to three-month lows.

Commodities were up over all, on the back of a strong upward movement in the price of crude oil, after a surprising announcement that the Organization of the Petroleum Exporting Countries (OPEC) and its allies will cut production more than expected.

In other economic news, the Institute of Supply Management (ISM) has released the November Non-Manufacturing Purchasing Managers’ Index (PMI), and reported a headline composite number of 60.7, up .04 since last month. This represents continued growth, and at a slightly faster rate, in the non-manufacturing sector.

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