TRADING WEEK ENDING March 17, 2017

The Week's U.S. Economic Calendar

Select Positive Data Reports

  • Housing Starts
    • (1288k versus survey of 1264k and prior of 1246k)
  • University of Michigan Consumer Sentiment Survey
    • (97.6 versus survey of 97.0 and prior of  96.3)
 

Select Negative Data Reports

  • Building Permits
    • (1213k versus survey of 1268k and prior of 1285k)

 

Market Comments

  • Large cap U.S. stocks (S&P 500) advanced +0.3% as midweek gains fueled by the Federal Reserve led the index to its seventh weekly gain in the last eight. Small cap equities (Russell 2000) were up +2.0%.
  • Nine of eleven sectors were up for the week, led by Real Estate (+1.9%) and Utilities (+1.3%). Financials (-0.9%) and Healthcare (-0.7%) were the only detractors for the week.
  • Developed international equities (MSCI EAFE) advanced +2.1% for the week, led by gains in Spain and the U.K. Emerging market equities (MSCI EM) were up +4.3%, as strong gains in South Korea and India boosted overall performance.
  • Yield oriented equities posted solid returns as REITs advanced+1.9% and Utilities gained +1.3%. MLPs finished the week down -0.9%. The 10-Year Treasury gained +0.8% on the week, as rates fell 8 basis points to 2.50%. High yield bonds rose modestly, posting a +0.2% weekly gain. Investment grade bonds were down +0.6%.

In The News

  • The Federal Reserve raised its benchmark lending rate a quarter point from 0.75% to 1.00% on Wednesday and projects two more increases this year. Minneapolis Fed President Neel Kashkari voted against the decision to hike rates, making him the only contrary vote on the committee.
  • A federal judge in Hawaii issued a nationwide temporary restraining order Wednesday that bars implementation of President Donald Trump’s revised executive order on immigration and refugees, a significant legal blow to the president’s renewed bid to restrict U.S. entry for people from six Muslim-majority countries.
  • Scotland’s First Minister Nicola Sturgeon said Monday she plans to seek a second referendum on Scottish independence within two years, casting doubt on the nation’s future in the U.K.
  • A late-winter storm in the U.S. shut down schools, canceled thousands of flights and led officials to declare states of emergency in several East Coast cities on Tuesday.

Performance Data as of March 17, 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.