The Week's U.S. Economic Calendar

Select Positive Data Reports

  • New Home Sales
    • (621k versus survey of 548k and prior of 592k)
  • FHA House Price Index MoM
    • (+0.8% versus survey of +0.4% and prior of +0.0%)

Select Negative Data Reports

  • Personal Consumption
    • (+0.3% versus survey of +0.9% and prior of +3.5%)
  • GDP Annualized QoQ
    • (+0.7% versus survey of +1.0% and prior of +2.1%)

Market Comments

  • Large cap U.S. stocks (S&P 500) rallied for the second consecutive week, up +1.5% as companies reported the strongest quarterly earnings growth in six years. Small cap equities (Russell 2000) kept pace with large caps, advancing +1.5%.
  • Eight of eleven sectors were positive for the week, led by Information Technology (+2.6%), Healthcare (+2.4%) and Consumer Discretionary (+2.1%). Conversely, Real Estate (-2.0%) and Telecom (-1.5%) were the largest detracting sectors for the week.
  • Developed international equities (MSCI EAFE) outpaced the U.S., advancing +3.1%, bolstered by large gains in France and Germany. Emerging market equities (MSCI EM) rose +1.7% led by gains from South Korea and Taiwan.
  • Yield oriented equities experienced mixed returns on the week as MLPs rose +0.3%, while REITs fell sharply, down -2.0%. The total return for the 10-Year Treasury was down   -0.4% as investors participated in a risk-on environment. High yield bonds continued to rally, advancing +0.7%.

In The News

  • The Trump administration announced Monday that they are planning to impose a 20% tariff on imports of Canadian softwood lumber to the U.S. of about $5 billion a year, effective retroactively. The trade dispute centers on Canadian provinces that have been allegedly allowing loggers to cut trees down at improperly subsidized costs and sell them at lower prices.
  • The White House rolled out its principals for a tax overhaul on Wednesday. The proposals include a 15% corporate tax rate, lower individual rates, a bigger standard deduction to benefit middle-income households and the repeal of the estate and alternative minimum taxes.
  • U.S. gross domestic product grew at a 0.7% annual rate in the first quarter of 2017, according to reports released by the Commerce Department on Friday, as consumers reined in spending despite a surge in stock prices.
  • Tech giants and Google parent Alphabet Inc. reported booming quarterly profit, up 41% and 29%, respectively.

Performance Data as of April 28, 2017

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General Performance Information
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Index Disclosure
The returns and volatility of the indices displayed may be materially different than the client’s account, and a client’s holdings may differ significantly from the securities that comprise the indices. The indices are disclosed to allow for comparisons to well-known and widely recognized indices, and may or may not be appropriate for performance comparisons. An investor cannot invest directly in the index.