The Week's U.S. Economic Calendar
- 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%)
- 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%)
- 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%.
- 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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