TRADING WEEK ENDING May 5, 2017

The Week's U.S. Economic Calendar

Select Positive Data Reports

  • Durable Goods Orders
    • (+0.9% versus survey of +0.7% and prior of +0.7%)
  • Unemployment Rate
    • (+4.4% versus survey of +4.6% and prior of +4.5%)

Select Negative Data Reports

  • Personal Income
    • (+0.2% versus survey of +0.3% and prior of +0.4%
  • ISM Manufacturing Index
    • (54.8 versus survey of 56.5 and prior of 57.2)

 

Market Comments

  • Large cap U.S. stocks (S&P 500) posted a modest gain of +0.7% for the week on positive corporate earnings results and a better-than-expected jobs report. Small cap equities (Russell 2000) lagged large caps, declining -0.2%.
  • Nine of eleven sectors were positive for the week, led by Information Technology (+1.4%), Financials (+1.3%) and Industrials (+0.9%). Conversely, Telecom (-1.2%) and Energy (-0.7%) were detracting sectors for the week.
  • Developed international equities (MSCI EAFE) outpaced the U.S., advancing +1.8%, led by large gains in France and the U.K. Emerging market equities (MSCI EM) remained flat (+0.1%) despite gains from South Korea and Brazil.
  • Yield oriented equities experienced mixed returns on the week as MLPs declined sharply, down -2.1%, while REITs advanced slightly, up +0.4%. The total return for the 10-Year Treasury fell -0.6% as investors participated in a risk-on environment driven by strong economic data releases. High yield bonds fell minimally, down -0.1%.

In The News

  • Fed officials voted unanimously to hold the overnight rate steady in a range between 0.75% and 1% after a two-day policy meeting in Washington on Wednesday.
  • Greece and its international creditors reached an agreement early on Tuesday on the austerity measures and economic overhauls the country must implement to keep its bailout program going, clearing the way for debt-relief talks.
  • Puerto Rico was placed under court protection on Wednesday in what amounts to the largest-ever U.S. municipal bankruptcy. Puerto Rico and its agencies owe $73 billion to creditors, dwarfing the previous record of ~$9 billion in bond debt owed by the city of Detroit in 2013.
  • Late lobbying and amendments allowed House Republicans to repeal most of President Barack Obama’s Affordable Care Act in a narrow 217-213 vote on Friday, handing President Donald Trump his first legislative victory. The House vote came more than a month after Speaker Paul Ryan was forced to withdraw the bill to avoid its collapse on the House floor.

Performance Data as of May 5, 2017

For important definitions included in this document, please click here

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.