Market Recap Week ending 3.29.19
-Darren Leavitt, CFA
Markets had nice gains last week as investors seemed to shrug off the most recent concerns over global growth. The S&P 500 gained 1.2% on the week, gaining just over 13% for the first quarter. The Dow added 1.7%, the NASDAQ increased 1.1%, and the Russell 2000 outperformed with a gain of 2.3%. Treasury yields came off their lows in the second half of the week but still posted nice gains for the week with the 2-year and 10-year yields both off 5 basis points and closing with yields of 2.27% and 2.41%, respectively. Gold lost about $10 for the week and closed at 1298/oz. Oil gained just over a dollar on the week and closed at just over $60/barrel. There were no changes to our models last week.
Trade negotiations between the US and China ramped up again last week as US officials met with their counterparts in China last week. The rhetoric was constructive, and talks will continue this week in Washington. On the other side of the pond, three votes on Brexit were once again shot down. A number of indicative votes on different proposals yielded nothing other than a clear view that all side were still far apart on a resolution.
Economic data in the US was kind of a mixed bag last week. The final reading of the Michigan Index on Consumer sentiment for March was a bit better at 98.4 versus the expectation of 97.8. However, the Consumer Confidence data came in at 124.1 versus the consensus of 132 and the lower than the February figure of 131.4. Personal income and spending both missed the market coming in at 0.2% and 0.1%, respectively versus an expectation of 0.3% for both indicators. New Home sales for February increased by 4.9% or 667k units versus expectations of 618k units. Housing starts and building permit figures missed their marks. Finally, the 3rd estimate of fourth-quarter GDP was revised lower to 2.2% versus expectations of 2.6%.
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