TRADING WEEK ENDING March 10, 2017

The Week's U.S. Economic Calendar

Select Positive Data Reports

  • Change in Nonfarm Payrolls
    • (235k versus survey of 200k and prior of 227k)
  • Durable Goods Orders
    • (+2.0% versus survey of +1.0% and prior of +1.8%)
 

Select Negative Data Reports

  • Initial Jobless Claims
    • (243k versus survey of 238k and prior of 223k)
  • Wholesale Trade Sales MoM
    • (-0.1% versus survey of +0.5% and prior of +2.6%)

 

Market Comments

  • Large cap U.S. stocks (S&P 500) declined -0.4% as markets paused in anticipation of the Federal Reserve meeting next week. Small cap equities (Russell 2000) were down -2.0%.
  • Nine of eleven sectors were down for the week, led by Real Estate (-3.6%), Energy (-2.6%), and Materials (-1.2%). Healthcare (+0.2%) and Information Technology (+0.6%) we the only advancing sectors for the week.
  • Developed international equities (MSCI EAFE) advanced +0.4% for the week, led by gains in France and Japan Emerging market equities (MSCI EM) fell -0.5%, their second consecutive weekly decline, as negative performance in Brazil and Taiwan dragged on overall performance.
  • Yield oriented equities posted negative returns as REITs declined -3.6% and Utilities fell -1.1%. MLPs finished the week down -3.0%. The 10-Year Treasury declined on the week, down -0.7% as rates rose 9 basis points to 2.58%. High yield bonds fell sharply, posting a -1.2% weekly loss. Investment grade bonds were down -0.9%.

In The News

  • The European Central Bank (ECB) left interest rates unchanged while continuing its €60 billion monthly bond buying program. The ECB’s continued easing underscores the divergence in monetary policies between Europe and the U.S. where imminent tightening is expected.
  • The pace of job creation remained robust in February as nonfarm payrolls exceeded expectations by gaining 235k. In addition, the unemployment rate ticked down to 4.7% as both pave the way for the Federal Reserve to move rates higher.
  • U.S. household net worth climbed to a record $92.8 trillion in the fourth quarter of 2016 as stocks surged late in the year and a steady climb in home prices added more than $2 trillion of wealth to household balance sheets.
  • Park Geun-hye, South Korea’s first female President, became the first leader to be removed from office by impeachment over accusations that she helped a friend win bribes from Samsung and other South Korean conglomerates. Riots in Seoul turned to violence as two protesters were killed.

Performance Data as of March 10, 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.