TRADING WEEK ENDING March 3, 2017

The Week's U.S. Economic Calendar

Select Positive Data Reports

  • Personal Income
    • (0.4% versus survey of 0.3% and prior of 0.3%)
  • ISM Manufacturing
    • (57.7 versus survey of 56.2 and prior of 56.0)
 

Select Negative Data Reports

  • GDP Price Index
    • (2.0% versus survey of 2.1% and prior of 2.1%)
  • Wholesale Inventories MoM
    • (-0.1% versus survey of +0.4% and prior of +1.0%)

 

Market Comments

  • Large cap U.S. stocks (S&P 500) advanced +0.7% led by gains in financial and energy stocks. Small cap equities (Russell 2000) remained flat for the week.
  • Seven of eleven sectors were higher, led by Financials (+2.1%), Energy (+1.5%), and Healthcare (+1.4%). Telecom (-1.1%) and Real Estate (-0.7%) were the largest detractors for the week.
  • Developed international equities (MSCI EAFE) advanced +0.5% for the week, led by gains in Spain, France and Switzerland. Emerging market equities (MSCI EM) fell -0.7%, their first weekly decline in five, as negative performance in Russia, Brazil and China dragged on overall performance.
  • Yield oriented equities posted negative returns as REITs declined -0.7% and utilities fell modestly –0.2%. MLPs finished the week up +1.1%. The 10-Year Treasury declined sharply on the week, down -1.5% as rates rose 16 basis points to 2.49%. High yield bonds advanced modestly, posting a +0.3% gain.

In The News

  • President Donald Trump addressed a joint session of Congress on Tuesday night with a speech that focused on national security, tax and regulatory reform, and health care. The President gave few specifics during the hour-long speech, but offered guidelines for Congress to repeal and replace the Affordable Care Act, rebuild the nation’s roads and bridges, and find an elusive compromise for an overhaul of the nation’s immigration laws.
  • Harvard University’s $36 billion endowment is preparing to close its hallmark internal hedge funds and invest nearly all its capital with outside money managers, representing the largest overhaul of the world’s largest endowment in decades.
  • Snap Inc., the parent company of the popular disappearing-message app Snapchat, priced its initial public offering above expectations Wednesday, valuing the six year old company at $24 billion. Investors clamored for a piece of the fast growing messaging company, making it the biggest U.S. technology IPO since Alibaba made its debut in 2014.

Performance Data as of March 3, 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.