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Weekly Capital Market Updates

EWM Weekly Capital Market Highlights for Week Ended 6/14/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • Equity markets generally were up around the world, as central bank policies continue to be easy in the face of slowing growth and global trade wars. The S&P 500 Index hit a record high after the Fed;s hint of future rate cuts.
  • Emerging markets led the way, rising more than 4% this week, as investors’ risk appetite returned following the accommodative signals from the Fed and the ECB,
  • Volatility fell this week and the CBOE Market Volatility Index (VIX) was down more than 7%.
  • The US dollar was down slightly for the week.
  • Commodity prices were up during the week, led by a surge in oil prices.
  • Treasury yields declined across all maturities, with the yield on the 10-year US Treasury Note falling to its lowest level in two-and-a-half years. The yield curve continued to be inverted.

Click here to download the complete weekly report: EWMWeeklyReview 6.21.19

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

EWM Weekly Capital Market Highlights for Week Ended 6/14/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • Stocks were flat for the week. Domestic equities, as measured by the S&P 500 Index, declined marginally and were essentially unchanged from the week before. Small cap stocks experience similar performance.
  • The yield on the 10-year US Treasury Note was unchanged. Yields on 10-year bonds ended the week where they started, at 2.08%. The yield curve for Treasurys remains inverted at the short end, with yields for 3-month and 6-month bills being above longer maturities out to 10 years.
  • Geopolitical concerns rise. Two oil tankers were attacked in the Persian Gulf this week, increasing tensions in the region.
  • China’s economy slows. For the month of May, China reported the slowest growth in its industrial output in 17 years.

Click here to download the complete weekly report: EWMWeeklyReview 6.14.19

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

EWM Weekly Capital Market Highlights for Week Ended 6/7/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • Stocks rallied, with the Dow breaking a six-week losing streak. This was the longest weekly losing streak since June 2011. Domestic equities outpaced international stocks, and emerging markets stocks trailed developed equities. Growth and value traded mostly in line, with both styles experiencing strong weekly gains.
  • The yield on the 10-year Treasury Note was lower, trading below 2.10% for the first time since 2017, and fell to 2.06% on Friday, from 2.14% the prior week.
  • World Bank lowers its outlook for global growth. The World Bank released a research report Tuesday, cutting its forecast to 2.60% for 2019 global growth, down from 2.90% previously, citing a slowdown in trade growth to the weakest level since the financial crisis.
  • ADP Employment Change reading at a three-year low. The monthly jobs report came in well below forecast, at just 27,000 jobs in May, the fewest number created since March 2010, and down from a revised 271,000 in April.

Click here to download the complete weekly report: EWMWeeklyReview 6.7.19

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

EWM Weekly Capital Market Highlights for Week Ended 5/31/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • Among equities, large caps trailed small caps slightly; growth stocks outperformed value stocks; international stocks beat US stocks; and developed markets underperformed emerging markets.
  • 10-year Treasury yield fell. The yield on the 10-year US Treasury Note slid to 2.17%, as a portion of the yield curve remains inverted, with the 3-month yield sitting at 2.34%.
  • Commodity indices overall had mixed returns for the week. Crude oil prices plunged towards the end of the week, with Brent Crude hovering around $65.
  • Dollar rose. The dollar jumped and the dollar index (DXY) closed at a level close to previous highs posted a month ago.
  • Among major economic data, jobless claims moved slightly higher, and mortgage applications are down 1.00% for the week.

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

EWM Weekly Capital Market Highlights for Week Ended 5/24/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • The yield on the 10-year US Treasury Note dropped to its lowest level since 2017, as the trade war has nervous investors seeking cover in safe havens. It fell below the yield on the 1-year for the second time this year, a warning sign of recession.
  • Oil prices were on track for their most significant weekly loss this year, with Brent crude oil set for a decline of more than 5%, although it recovered almost 1% in early trading on Friday.
  • Gold benefited from heightened trade tensions, rising above $1,280 per ounce, up 0.5% for the Week. The dollar moved lower on Friday, away from its two-year high, after weak manufacturing data and potential economic fallout from a trade war with China increased expectations for an interest-rate cut this year.
  • Within equities, all of the various market capitalizations and styles posted negative results for the week. Large cap held up the best, while small cap had the largest decline; value outperformed growth in most market capitalizations except for small cap value, which trailed the most; international slightly outperformed domestic stocks, and developed markets outperformed emerging markets.

Click here to download the complete weekly report: EWMWeeklyReview 5.28.19

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

EWM Weekly Capital Market Highlights for Week Ended 5/17/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • Risk assets faced selling pressure for the second straight week, as investors continued to digest the current state of global trade wars. Although markets experienced deep losses on Monday, the remainder of the week was spent regaining some of the loss in value. Large cap stocks outperformed small cap; developed stocks outperformed emerging markets equities; and growth and value were evenly split.
  • The yield on the 10-year US Treasury was lower, trading below 2.40% from 2.46% the prior week, as investors moved to safer assets.
  • Walmart (WMT) will raise prices on some products as a result of tariffs on Chinese goods. The company also announced it will offer next-day shipping in a move to compete with Amazon (AMZN).
  • Bitcoin surged higher, reclaiming 7,000 and then 8,000 price levels earlier in the week, before selling off on Friday. Although the cryptocurrency has spent much of 2019 hovering near 4,000, it has surged higher in recent weeks.
  • Uber (UBER) faced challenges in its first full week of trading, falling as low as $36.08, or -19.80% from its IPO price of $45, on Monday, before recovering to $43 by Thursday’s close.
  • Initial jobless claims fell 16,000 to 212,000, their lowest level in a month.

Click here to download the complete weekly report: EWMWeeklyReview 5.20.19

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

EWM Weekly Capital Market Highlights for Week Ended 5/10/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • Global equity markets fell last week on talk of an escalation of the US’s trade war with China. Japan suffered the smallest drop of the week, down roughly 2.50% European stocks were down nearly 3.00%, while US equities were down more than 3.20% on the week.
  • Treasury yields were lower. Yields on five- and ten-year issues were down roughly nine basis points on the week, driven largely by the same trade issues. The US investment grade fixed income indices were some of the few winners for the week.
  • The US Dollar Index was down slightly last week. After an up and down start to the week, the trade-weighted index sold off sharply on Thursday and Friday.
  • Crude oil rallied nearly $2 a barrel on Monday, but proceeded to trade sideways for the remainder of the week. Growing tensions between the US and Iran over its nuclear program could disrupt production and push prices higher in the coming weeks.

Click here to download the complete weekly report: EWMWeeklyReview 5.13.19

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

EWM Weekly Capital Market Highlights for Week Ended 5/3/2019

By Financial Markets & Economy, Weekly Capital Market Updates
  • In equities, the S&P 500 arrested its two day slide after Friday’s better-than-expected jobs data. European shares ticked higher on Friday, as the Stoxx-600 Index recovered from its midweek slide, aided by gains in banks and Adidas stock. Equity indices in the Asia-Pacific region ended the week on a mixed note, while markets in China and Japan remained closed. Oil declined for the second straight week, as stockpiles in the US rose to their highest levels since 2017.
  • The yield on the 10-Year US Treasury Note rebounded to the 2.50% level after the Fed said that the inflation decline is transient. However, the yield rose after Friday’s strong jobs data.
  • The Dollar Spot Index gained in the wake of the Fed keeping rates unchanged and better jobs data
  • Beyond Meat (BYND), the vegan unicorn, became the latest unprofitable, disruptive company to go public. Its share price soared 163%, closing in at $65.75, marking the best first day percentage gain for an IPO this year in the US.
  • Among major economic data, the ISM manufacturing index for April fell to 52.80% from 55.30% in March. The April reading is the lowest since October 2016.

Click here to download the complete weekly report: EWMWeeklyReview 5.06.19

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

EWM Weekly Capital Market Highlights for Week Ended 4/29/19

By Financial Markets & Economy, Weekly Capital Market Updates
  • Among equities, large caps trailed small caps; growth stocks beat value stocks; international stocks underperformed US stocks; and developed markets outperformed emerging markets.
  • Treasury yields fell. The yield on the 10-year US Treasury Note slid back to 2.50% from 2.56% at the beginning of the week.
  • Commodity indices declined. Crude oil prices plunged towards the end of the week after rising early in the week.
  • Dollar rose. The dollar jumped and the dollar index (DXY) hit a 52-week high during the week.
  • Among major economic data, Q1 2019 GDP rose 3.2%; new home sales jumped, initial jobless claims rebounded; and durable goods orders surged.

Click here to download the complete weekly report: EWMWeeklyReview 4.29.19

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

EWM Weekly Capital Market Highlights for Week Ended 4/12/19

By Financial Markets & Economy, Weekly Capital Market Updates
  • Domestic equities were slightly negative through Thursday, but Friday turned the market positive for the week. International equities were mostly flat as well, with emerging market stocks outperforming their developed market counterparts.
  • Treasury yields were were flat through the end of the day Thursday.
  • The US dollar weakened during the week, dropping to its lowest level in two weeks. The weakness was driven by strength in the Euro and economic news that boosted demand for riskier assets.
  • Commodities were up for the week, driven by increases in oil and gold prices.

Click here to download the complete weekly report: EWMWeeklyReview 4.15.19

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