TRADING WEEK ENDING July 21, 2017

The Week's U.S. Economic Calendar

Select Positive Data Reports

  • Housing Starts
    • (1215k versus survey of 1160k and prior of 1092k)
  • Initial Jobless Claims
    • (233k versus survey of 245k and prior of 247k)
 

Select Negative Data Reports

  • Continuing Claims
    • (1977k versus survey of 1949k and prior of 1945k)

Market Comments

  • Large cap U.S. stocks (S&P 500) posted gains for the week (+0.6%) after strong corporate quarterly earnings drove major stock indices to all time highs. Small cap equities (Russell 2000) performed in sync with their large-cap counterparts, returning +0.5% for the week.
  • Seven of the eleven sectors were positive for the week, highlighted by Utilities (+2.6%) and Healthcare (+1.1%), which benefited from falling interest rates.
  • Developed international equities (MSCI EAFE) advanced +0.5%, led by strong returns in Japan. Emerging market equities (MSCI EM) advanced +1.3% on the back of strong returns from South Korea and China.
  • Yield oriented equities posted mixed returns on the week with MLPs generating nominal returns of -1.9%, while the aforementioned Utilities and Real Estate were up +2.6% and +0.8%, respectively. The 10-Year Treasury posted a weekly return of +0.8%, as long-end rates fell from 2.32% to 2.23%. High yield bonds continued their rally, up +0.6%.

In The News

  • Foreign buyers and recent immigrants purchased $153 billion of residential property in the U.S. in the year ended in March, nearly a 50% jump from a year earlier, according to a National Association of Realtors report released Tuesday. The surge in foreign demand for U.S. homes has been driven largely by Canadians avoiding the overheated real-estate markets in cities such as Vancouver.
  • The U.S. Treasury Department on Thursday imposed a $2 million fine on Exxon Mobil Corporation for what it called a “reckless disregard” of U.S. sanctions on Russia while Secretary of State Rex Tillerson was the oil giant’s chief executive. The $2 million fine, the Treasury said, was the maximum amount it could levy against the company.
  • Senate GOP leaders gave up their effort to dismantle and simultaneously replace much of the Affordable Care Act, after the defections of two more Republican senators left the party short of the votes needed to pass President Trump’s top legislative priority of his first seven months in office.

Performance Data as of July 21, 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.