Financial Market Update
Welcome to the StrategicPoint Financial Market Update — a market and economic overview of what occurred last week and what’s up for this week. Please find our market commentary and most recent Blog posts in our StrategicPoint of View®.
As the Group of Seven (G7) summit kicked off last Friday, and tensions seemed to escalate between the United States and its trade partners, stocks closed the week on a positive note. All of the indexes tracked here rose more than 1%, with the domestic large caps of the Dow faring especially well. Year-to-date, the Global Dow remained in negative territory, while the Nasdaq and Russell 2000 boasted solid gains.
The price of crude oil (WTI) dipped slightly last week, closing at $65.56 per barrel, down from the prior week’s closing price of $65.72 per barrel. The price of gold (COMEX) rose to $1,303.50 by early Friday evening, up from the prior week’s price of $1,298.00. The national average retail regular gasoline price fell to $2.940 per gallon on June 4, 2018, $0.022 lower than the prior week’s price but $0.526 more than a year ago.
S&P 500: 2779 (up 1.62% for the week and up 3.94% for the year)
NASDAQ: 7645 (up 1.21% for the week and up 10.75% for the year)
Dow: 25316 (up 2.77% for the week and up 2.42% for the year)
US Treasury 10yr: 2.93% (from 2.90% last week)
Crude Oil (July): $65.74 (from $65.81 last week)
Gold(August): $1,302.70 (from $1,299.30 last week)
USD/Euro: $1.177 (from $1.1658 last week)
Last Week’s Headlines
• Business expanded in the non-manufacturing, or services, sector in May, according to the latest Non-Manufacturing ISM® Report On Business®. Not only did business activity grow in May, but new orders, employment, and prices also advanced over their April returns. Not surprisingly, new export orders retracted notably in May.
• According to the Job Openings and Labor Turnover Summary for April, there were 6.7 million job openings at the end of the month — an increase of about 65,000 openings over March. Notable increases in job openings occurred in manufacturing; professional and business services; and leisure and hospitality. Several areas saw job openings decrease in April from March, including federal, state, and local government; education and health services; and financial activities. The number of hires and separations grew in April compared to March.
• The goods and services trade deficit was $46.2 billion in April, down $1.0 billion from March. April exports were $211.2 billion, $0.6 billion more than March exports. April imports were $257.4 billion, $0.4 billion less than March imports. Year-to-date, the goods and services deficit increased $20.8 billion, or 11.5%, from the same period in 2017. Exports increased $62.0 billion, or 8.1%. Imports increased $82.8 billion, or 8.7%.
• In the week ended June 2, there were 222,000 initial claims for unemployment insurance, a decrease of 1,000 from the previous week’s level, which was revised up by 2,000. The advance insured unemployment rate remained at 1.2%. The advance number of those receiving unemployment insurance benefits during the week ended May 26 was 1,741,000, an increase of 21,000 from the prior week’s level, which was revised down by 6,000.
An interesting week lies ahead on both the economic and geopolitical fronts. President Trump is scheduled to meet with North Korean leader Kim Jong Un on the 12th in Singapore. The United States hopes to negotiate an end to North Korea’s nuclear weapons program in exchange for relief from economic sanctions. In other upcoming news, the Federal Open Market Committee meets this week. Many analysts predict an interest rate hike is in the offing.
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*Past performance is not indicative of future results. Indices are unmanaged and you cannot directly invest in them. The Nasdaq Composite Index measures all NASDAQ U.S. and non-U.S. based common stocks listed on the Nasdaq Stock Market. The S&P 500 index is based on the average performance of 500 industrial stocks monitored by Standard and Poor’s. The data referred to above was taken from sources believed to be reliable. StrategicPoint Investment Advisors has not verified such data and no representation or warranty, expressed or implied, is made by StrategicPoint Investment Advisors.
Data sources: News items are based on reports from multiple commonly available international news sources (i.e. wire services) and are independently verified when necessary with secondary sources such as government agencies, corporate press releases, or trade organizations. Market data: Based on data reported in WSJ Market Data Center (indexes); U.S. Treasury (Treasury yields); U.S. Energy Information Administration/Bloomberg.com Market Data (oil spot price, WTI Cushing, OK); www.goldprice.org (spot gold/silver); Oanda/FX Street (currency exchange rates). All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Past performance is no guarantee of future results. All investing involves risk, including the potential loss of principal, and there can be no guarantee that any investing strategy will be successful.
The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange. The Russell 2000 is a market-cap weighted index composed of 2,000 U.S. small-cap common stocks. The Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide. Market indices listed are unmanaged and are not available for direct investment.
The information contained in this report is not intended as investment, tax or legal advice. StrategicPoint Investment Advisors assumes no responsibility for any action or inaction resulting from the contents herein.
Parts of this report were prepared by Broadridge Investor Communication Solutions, Inc.
Copyright 2018. Part of this content contributed by Forefield, Inc.