Market Dashboard

Last update: 1/22/2019

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Last week's featured headlines and data

Domestic

  • For the week ending January 18, the S&P 500® index rose 2.87% to 2,670.71; the S&P 500 TR rose 2.90%. The S&P TR’s total return year to date, including price change plus dividends, was 6.63%. The Dow Jones Industrial Average (Total Return) rose 3.01%.
  • Stocks seesawed amid government shutdown chaos for much of the week, before surging Friday on reports that the US was willing to cut tariffs on Chinese imports. It was the S&P 500’s fourth consecutive weekly gain, with investors appearing to regain confidence after a wobbly December.
  • On Saturday, President Trump floated a proposal to reopen the federal government. The president proposed temporary protections for certain young, undocumented migrants in exchange for funding for his border wall. Democrats appeared unlikely to agree to the proposal. Meantime, the White House ordered thousands of furloughed federal employees back to work without pay.
  • Senators questioned William Barr, President Trump’s pick for attorney general, with Democratic senators focusing on whether Barr would defend the Special Counsel’s investigation. Barr, who served under President George H.W. Bush, said he would not fire Robert Mueller without cause.
  • A federal judge rejected a proposal by the Census Bureau to include a question about citizenship in the 2020 questionnaire. The judge accused Commerce Secretary Wilbur Ross of “a veritable smorgasbord” of violations of the Administrative Procedure Act.

International

  • British Prime Minister Theresa May’s Brexit plan was defeated in the House of Commons by a vote of 432 to 202—one of the most stinging rebukes for a British leader since the 1920s. The vote leaves Britain without an exit plan from the European Union. However, May survived an ensuing non-confidence vote called by the Labour party.
  • Authorities in Beijing promised to prop up China’s ailing economy in 2019 with a package of tax cuts and more accommodative monetary policy. Investors generally reacted positively to the announcement.
  • US authorities are moving closer to indicting Chinese tech giant Huawei Technologies Co. for stealing trade secrets from American partner companies. US officials fear Beijing could be using its products for spying. Huawei executives have repeatedly denied the allegations.
  • China has asked some state-run firms to avoid business trips to the US and advised them to take extra precautions to protect their devices if they need to travel, according to people familiar with the request.

Fixed income

  • The yield on the benchmark 10-year Treasury rose to 2.79% on strong economic data and reports of a potential trade agreement between US and China.
  • Analysts are increasingly bullish about the high-yield bond market. Wells Fargo increased its high-yield return projections from 6-7% to 9.9% for the upcoming year, citing attractive yields, improving issuer fundamentals, and a slight uptick in issuance.
  • The effects of Brexit are affecting the UK bond market, with long-term yields coming down as investors seek refuge in longer-dated bonds. The UK yield curve is the flattest it has been since 2016.

Other news

  • Sears Holdings was granted a reprieve after owner and hedge fund magnate Eddie Lampert convinced creditors to give him another shot at keeping the retailer afloat. However, unsecured creditors have threatened to sue Lampert for decisions he made as CEO.
  • San Francisco-based utility PG&E may need to file for Chapter 11 bankruptcy following a tidal wave of lawsuits blaming the company for last year’s California forest fires.
  • Shares in Tesla Inc. fell more than 5% after Chief Executive Officer Elon Musk said the “road ahead will be very difficult” in a blog post. Musk also announced a 7% reduction in Tesla’s full-time workforce and warned about the effects of phasing out of electric-car tax credits at the end of this year.
  • Netflix announced the biggest price hike in its history, with subscription prices going up by 13– 18%, meaning the most popular plan cost will now cost roughly $155 per year. The company's stock price soared on the news, reflecting investors’ belief that subscriptions won’t suffer as a result of the higher rates. gle employees staged a walkout over sexual misconduct in the workplace.
 

Trailing returns

Trailing index returns for week ending January 18, 2019

S&P 500 sector performance

S&P 500 sector performance for week ending January 18, 2019

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Russell Style Indexes

Russell Style Indexes for week ending January 18, 2019

Fixed income rates

Fixed income rates for week ending January 18, 2019

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The week ahead

  • US markets were closed in observance of Martin Luther King Jr. Day.
  • ­China reported fourth-quarter and full-year 2018 GDP.
 
  • The National Association of Realtors reports existing-home sales data for December.
  • ­Redbook is released.
  • ­Capital One and others report quarterly earnings.
  • The Bank of Japan announces its monetary-policy decision.
  • ­The Federal Housing Finance Agency reports its House Price Index for November.
  • ­The Richmond Fed Manufacturing Index released.
  • ­MBA mortgage applications are reported.
  • ­Ford Motor Co. and others report quarterly earnings.
 

 

  • European Central Bank (ECB) President Mario Draghi holds a press conference after the ECB’s monetary-policy announcement.
  • ­The Conference Board releases its Leading Economic Index for December.
  • ­Manufacturing Purchasing Managers’ Index for January is reported.
  • ­The EIA Petroleum Status Report is released.
  • ­The EIA Natural Gas Storage Report is released.
  • ­Jobless claims are reported.
  • ­Western Digital and others report quarterly earnings.
 
 
  • Durable goods orders are reported.
  • ­New home sales are reported.
  • ­The Baker Hughes Rig Count is reported.
  • ­Colgate-Palmolive and others report quarterly earnings.

Index Benchmarks

Weekly and monthly style performance charts use Russell 1000, Russell Mid Cap, and Russell 2000 style indexes to represent large cap, mid cap, and small cap respectively.

BarCap Municipal TR USD: Listed for municipal-bond funds. This index serves as a benchmark for long-term, investment-grade, tax-exempt municipal bonds. The returns we publish for the index are total returns, which include reinvestment of dividends.

BarCap US Agg Bond TR USD: Composed of the BarCap Government/Credit Index, the Mortgage-Backed Securities Index, and the Asset-Backed Securities Index. The returns we publish for the index are total returns, which include reinvestment of dividends.

Barclays Capital U.S. Corporate High-Yield Bond Index: The U.S. Corporate High-Yield Index covers the USD-denominated, non-investment grade, fixed-rate, taxable corporate bond market. Securities are classified as high-yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+/BB+ or below. The index excludes emerging markets debt. The index was created in 1986, with index history backfilled to January 1, 1983. The U.S. Corporate High-Yield Index is part of the U.S. Universal and Global High-Yield Indexes.

Barclays Capital U.S. 7–10 Year Treasury: The index measures the performance of U.S. Treasury securities that have a remaining maturity of at least seven years and less than 10 years.

Bloomberg Gold Subindex: Formerly known as Dow Jones-UBS Gold Subindex (DJUBSGC), the index is a commodity group subindex of the Bloomberg CI composed of futures contracts on Gold. It reflects the return of underlying commodity futures price movements only and is quoted in USD.

Bloomberg WTI Crude Oil Subindex: Formerly known as Dow Jones-UBS WTI Crude Oil Subindex Total Return (DJUBCLTR), the index is a single commodity subindex of the Bloomberg CI composed of futures contracts on crude oil. It reflects the return of underlying commodity futures price movements only and is quoted in USD. 

Citigroup World Government Bond Index (Citigroup WGBI) is a market capitalization weighted index consisting of the government bond markets. Country eligibility is determined based on market capitalization and investability criteria. All issues have a remaining maturity of at least one year.

Dow Jones Industrial Average: Computed by summing the prices of the stocks of 30 companies and then dividing that total by an adjusted value—one which has been adjusted over the years to account for the effects of stock splits on the prices of the 30 companies. Dividends are reinvested to reflect the actual performance of the underlying securities.

DJ UBS Sub Crude Oil TR USD: Indexes in the DJ-UBSCIsm family are calculated on both an excess return and total return basis. The excess return indexes reflect the return of underlying commodity futures price movements only, whereas the total return indexes reflect the return on fully collateralized futures positions. 19 commodities are included in the DJ-UBSCIsm, representing the following commodity sectors: energy, precious metals, industrial metals, livestock, and agriculture.

DJ UBS Sub Gold TR USD: Indexes in the DJ-UBSCIsm family are calculated on both an excess return and total return basis. The excess return indexes reflect the return of underlying commodity futures price movements only, whereas the total return indexes reflect the return on fully collateralized futures positions. 19 commodities are included in the DJ-UBSCIsm, representing the following commodity sectors: energy, precious metals, industrial metals, livestock, and agriculture.

J.P.Morgan Emerging Markets Bond Index Global (EMBI Global) tracks total returns for traded external debt instruments in the emerging markets, and is an expanded version of the JPMorgan EMBI+. As with the EMBI+, the EMBI Global includes U.S.dollar-denominated Brady bonds, loans, and eurobonds with an outstanding face value of at least $500 million. It covers more of the eligible instruments than the EMBI+ by relaxing somewhat the strict EMBI+ limits on secondary market trading liquidity.

MSCI EAFE (Europe, Australasia, Far East) Index: A free float-adjusted market-capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The MSCI EAFE Index consists of the following 21 developed market country indexes: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. For more information, visit the MSCI website.

MSCI EMF (Emerging Markets Free) Index: A free float-adjusted market-capitalization index that is designed to measure equity market performance of emerging markets. The MSCI Emerging Markets Index consists of the following 23 emerging market country indexes: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates. For more information, visit the MSCI web site.

Russell 1000: Consists of the 1000 largest companies within the Russell 3000 index. Also known as the Market-Oriented Index, because it represents the group of stocks from which most active money managers choose. The returns we publish for the index are total returns, which include reinvestment of dividends. Frank Russell Company reports its indexes as one-month total returns.

Russell 1000 Growth: Market-capitalization weighted index of those firms in the Russell 1000 with higher price-to-book ratios and higher forecasted growth values. The Russell 1000 includes the largest 1000 firms in the Russell 3000, which represents approximately 98% of the investable US equity market.

Russell 1000 Value: Market-capitalization weighted index of those firms in the Russell 1000 with lower price-to-book ratios and lower forecasted growth values. The Russell 1000 includes the largest 1000 firms in the Russell 3000, which represents approximately 98% of the investable US equity market.

Russell 2000: Consists of the smallest 2000 companies in the Russell 3000 Index, representing approximately 7% of the Russell 3000 total market capitalization. The returns we publish for the index are total returns, which include reinvestment of dividends.

Russell 2000 Growth: Market-weighted total return index that measures the performance of companies within the Russell 2000 Index having higher price-to-book ratios and higher forecasted growth values. The Russell 2000 Index includes the 2000 firms from the Russell 3000 Index with the smallest market capitalizations. The Russell 3000 Index represents 98% of the of the investable US equity market.

Russell 2000 Value: Market-weighted total return index that measures the performance of companies within the Russell 2000 Index having lower price-to-book ratios and lower forecasted growth values. The Russell 2000 Index includes the 2000 firms from the Russell 3000 Index with the smallest market capitalizations. The Russell 3000 Index represents 98% of the of the investable US equity market.

Russell Midcap: Measures the performance of the 800 smallest companies in the Russell 1000 Index, which represent approximately 25% of the total market capitalization of the Russell 1000 Index. As of the latest reconstitution, the average market capitalization was approximately $4.0 billion; the median market capitalization was approximately $2.9 billion. The largest company in the index had an approximate market capitalization of $12 billion.

Russell Midcap Growth: Market-weighted total return index that measures the performance of companies within the Russell Midcap Index having higher price-to-book ratios and higher forecasted growth values. The Russell Midcap Index includes firms 201 through 1000, based on market capitalization, from the Russell 3000 Index. The Russell 3000 Index represents 98% of the of the investable U.S. equity market.

Russell Midcap Value: Market-weighted total return index that measures the performance of companies within the Russell Midcap Index having lower price-to-book ratios and lower forecasted growth values. The Russell Midcap Index includes firms 201 through 1000, based on market capitalization, from the Russell 3000 Index. The Russell 3000 Index represents 98% of the of the investable U.S. equity market.

NASDAQ: Measures the performance of all issues listed in the NASDAQ Stock Market, except for rights, warrants, units, and convertible debentures. Morningstar reports the NASDAQ Composite as a price return.

S&P 500: A market capitalization-weighted index of 500 widely held stocks often used as a proxy for the stock market. It measures the movement of the largest issues. Standard and Poor's chooses the member companies for the 500 based on market size, liquidity and industry group representation. Included are the stocks of industrial, financial, utility, and transportation companies. Since mid-1989, this composition has been more flexible and the number of issues in each sector has varied. The returns presented for the S&P 500 are total returns, including the reinvestment of dividends each month.

The S&P 500 Consumer Discretionary sector comprises those companies included in the S&P 500 that are classified as members of the consumer discretionary sector.

The S&P 500 Consumer Staples sector comprises those companies included in the S&P 500 that are classified as members of the consumer staples sector.

The S&P 500 Energy sector comprises those companies included in the S&P 500 that are classified as members of the energy sector.

The S&P 500 Financials sector comprises those companies included in the S&P 500 that are classified as members of the financial sector.

The S&P 500 Health Care sector comprises those companies included in the S&P 500 that are classified as members of the health care sector.

The S&P 500 Industrials Sector comprises those companies included in the S&P 500 that are classified as members of the industrials sector.

The S&P 500 Information Technology Sector comprises those companies included in the S&P 500 that are classified as members of the information technology sector.

The S&P 500 Materials Sector comprises those companies included in the S&P 500 that are classified as members of the materials sector.

The S&P 500 Telecommunications Services Sector comprises those companies included in the S&P 500 that are classified as members of the telecommunications services sector.

The S&P 500 Utilities Sector comprises those companies included in the S&P 500 that are classified as members of the utilities sector.