Market Dashboard

12/11/2017

Last week's featured headlines and data

Domestic

 

  • For the week ending December 8, the S&P 500® Index rose 0.39% to 2651.50. The S&P’s total return year to date, including price change plus dividends, was 20.72%. The Dow Jones Industrial Average rose 0.46%. The 10-year US Treasury yield rose to 2.38%.
  • The House and the Senate voted to reconcile their separate tax bills in a conference committee. The decision came after the discovery that the Senate had inadvertently included a corporate alternative minimum tax.
  • Congress passed a two-week spending bill to avoid a partial government shutdown.
  • The US Supreme Court allowed the Trump administration’s ban on travel from six mostly Muslim countries to take immediate effect.        

 

International

 

  • President Trump recognized Jerusalem as Israel’s capital, a major shift in a long-held US policy, and announced that the US embassy would relocate there from Tel Aviv.
  • Gilts dropped and the pound remained effectively unchanged after Brexit negotiations took the next step with an agreement that covers citizen rights, the divorce bill, and the promise of no hard Irish border.
  • The Brazilian Central Bank cut its benchmark rate by 50 basis points to 7% amid historically low inflation (+2.7% y/y) and a wide output gap.
  • The Australian dollar fell on Wednesday after a domestic GDP growth report missed expectations, largely due to a lower-than-expected increase in consumer spending. For the week, the AUD sold off by nearly 1.2% against the US dollar.       

 

Fixed income

 

  • US government bonds slipped Friday after the monthly jobs report showed ongoing strength in the labor market but tepid wage growth.
  • The yield on the benchmark 10-year US Treasury note ticked up to 2.383% on Friday from 2.374% on Thursday, capping two consecutive weeks of yield gains.  
  • Puerto Rico’s benchmark general-obligation bonds due in 2035 traded at a record-low average price of 21.8 cents on the dollar, perhaps affected by news that electric company Prepa and water utility company Prasa would run out of money in December.   

 

Other news

 

  • CVS Health agreed to pay $69 billion to buy Aetna, the third-largest US health insurer.
  • Optum, the pharmacy benefits and analytics unit of UnitedHealth Group, the country’s largest health insurer, announced a $4.9 billion deal for DaVita Medical Group, a leading independent medical group. 

Trailing returns

Trailing returns for the week ending December 11, 2017

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S&P 500 sector performance

S&P 500 performance for week ending December 11, 2017

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Russell Style Indexes

Russell Style Indexes for week ending December 11, 2017

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Fixed income rates

Fixed income rates for the week ending December 11, 2017

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The week ahead

 

Monday

  • The Labor Department releases its Job Openings and Labor Turnover Survey (JOLTS).
  • Cisco Systems hosts its annual shareholder meeting.
  • Casey’s General Stores and others post results. 

 

Tuesday

  • Alabama holds a special election for the Senate seat formerly held by US Attorney General Jeff Sessions.
  • The Central Bank of Argentina releases its monetary policy statement.
  • The National Federation of Independent Business (NFIB) releases its Small Business Optimism Index for November.
  • Bureau of Labor Statistics releases the November Producer Price Index.
  • Verifone Systems and others post results.

 

Wednesday

  • The Consumer Price Index for November is released.
  • The Federal Reserve Open Market Committee announces its interest rate decision.
  • The Mortgage Bankers Association (MBA) releases its mortgage applications report.
  • The Energy Information Administration (EIA) releases its Petroleum Status Report.
  • Nordson and others post results.

 

Thursday

  • The Bank of England, European Central Bank, and Swiss National Bank announce interest rate decisions.
  • The US Census Bureau releases retail sales data for November.
  • The European Council meets in Brussels through Dec. 15 to examine issues facing Europe, including the ongoing Brexit negotiations.
  • Import and export prices are reported.
  • Business inventory data are released.
  • Jobless claims are reported.
  • Costco Wholesale and others post results.

 

Friday

  • The Central Bank of Russia announces its interest rate decision.
  • Fitch reviews its credit ratings for Armenia, Ireland, and Portugal.
  • The New York Federal Reserve releases the Empire State Manufacturing Survey for December.
  • Industrial production data are released.
  • The Baker-Hughes Rig Count is reported.

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.

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 Crude Oil Subindex (a subindex of DJ UBS Commodity Index) is intended to reflect the crude oil segment of the commodities market. The index consists of futures contracts on crude oil only.

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.

DJ-UBS Gold SubindexSM is based on the gold component used in the DJ-UBS Commodity IndexSM. The subindex is priced off COMEX Gold futures contracts.

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.