TRADING WEEK ENDING August 11, 2017

The Week's U.S. Economic Calendar

Select Positive Data Reports

  • Wholesale Trade Sales MoM
    • (+0.7% versus survey of +0.0% and prior of –0.5%)
 

Select Negative Data Reports

  • Initial Jobless Claims
    • (244k versus survey of 240k and prior of 240k)

 

Market Comments

  • Large cap U.S. stocks (S&P 500) posted their second worst weekly loss of the year, down -1.4%, as geopolitical tensions spurred a risk-off trade environment. Small cap equities (Russell 2000) faired much worse than their large cap counterparts, falling -2.7%.
  • Ten of the eleven sectors were negative for the week, highlighted by Financials (-2.7%), Energy (-2.6%) and Materials (-2.0%). Consumer Staples (+0.1%) was the lone contributor.
  • Developed international equities (MSCI EAFE) lagged the U.S., falling -1.5%, as losses in the United Kingdom and France detracted from overall performance. Emerging market equities (MSCI EM) retreated -2.2% amid large declines in both South Korean and Chinese equities.
  • Yield oriented equities posted heavy losses on the week, with MLPs and REITs generating nominal returns of -4.2% and -1.9%, respectively, while Utilities fell a modest -0.2%. The 10-Year Treasury posted a weekly return of +0.7% as investors flight-to-quality drove down investment grade yields.

In The News

  • Americans are less likely to be laid off than at any point in at least 50 years, according to a report released by the U.S. Labor Department on Monday. For every 10,000 people in the workforce, 66 claimed new unemployment benefits in July, trending at the lowest point on record going back to 1967.
  • President Donald Trump bluntly warned North Korea against making any more nuclear threats to the U.S., saying the country “will be met with fire and fury like the world has never seen.” Mr. Trump’s stark comments reflect deep concern in the administration about the progress North Korea has made in recent months on its nuclear-weapons program.
  • Wednesday’s Labor Department report showed U.S. worker productivity picked up modestly in the second quarter but showed little sign of breaking out of the sluggish trend that has prevailed for more than a decade, holding back economic growth and living standards. Productivity growth has slowed markedly since the information technology-fueled boom of the late 1990’s and early 2000’s.

Performance Data as of August 11, 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.