TRADING WEEK ENDING April 28, 2017

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 Amazon.com 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
The performance results in this presentation have been complied by Tolleson Wealth Management (“TWM”). Past performance is no guarantee of future results. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. All investments involve risk, including the loss of principal. This information discusses general market activity, industry or sector trends, or other broad-based economic market or political conditions and should not be construed as research or investment advice. Certain information contained herein concerning economic trends and performance is based on or derived from information provided by independent third-party sources. Opinions expressed are current opinions as of the original publication date appearing in this material only. Any opinions expressed are subject to change without notice and TWM is under no obligation to update the information contained herein. TWM disclaims responsibility for the accuracy or completeness of this report although reasonable care has been taken to assure the accuracy of the data contained herein. This material has been prepared and is distributed solely for informational purposes only and is not a solicitation or an offer to buy a security or instrument or to participate in any trading strategy. This report may not be reproduced, distributed or transmitted, in whole or part, by any means, without written permission from TWM. If you have any questions regarding this presentation, please contact your TWM representative.

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.