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

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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.