Weekly Commentary

Main content

Monday, December 29, 2014

The post-FOMC comeback by the equity markets continued last week, sending the DJIA and S&P 500 back to new record highs in time for Christmas. Notably, the DJIA eclipsed 18,000 for the first time, having rallied more than 1,000 points in only five trading days. The dollar continued to strengthen against the euro and the yen, while yield on the benchmark ten-year U.S. Treasury moved higher

Monday, December 22, 2014

Though last week’s drubbing extended into the first few days of the new week, equity markets staged a furious comeback after the Fed on Wednesday reiterated it would take a patient approach to its rate hikes. Oil prices continued to decline but showed some stability near a five-year low around the mid-$50/barrel level. Yield on the benchmark ten-year Treasury approached 2% during the week before rebounding to finish around 2.17%.

Monday, December 15, 2014

U.S. stocks took their first weekly loss in two months as plummeting oil prices stoked fears of deflation in the global economy. The DJIA and S&P 500 recorded their worst weekly losses in more than two-and-a-half years; the Nasdaq also posted a loss. European and Asian bourses sustained losses similar to or worse than U.S. markets.

Monday, December 8, 2014

Equity markets continued their winning ways last week, as generally positive economic data flow was punctuated by a blockbuster jobs report on Friday. The DJIA and S&P 500 both closed at record highs, while yield on the benchmark ten-year Treasury moved higher to finish around 2.3%. Crude oil prices continued to struggle, ending the week at a five-year low.

Monday, December 1, 2014

Despite falling prices and the threat of oversupply from North American shale oil, OPEC decided not to curtail oil production following its latest meeting. Reacting to the news, WTI crude sold off sharply to end below $70/barrel; energy stocks, including solar and renewable-energy companies, tumbled. U.S. inflation expectations dropped on the news.

Monday, November 24, 2014

Another week, another round of new highs for equity markets; the S&P 500 is now up more than 10% off its mid-October lows. Domestic data flow continued to be supportive of risk assets, while a rate cut in China and heightened ECB rhetoric further buoyed sentiment.

Monday, November 17, 2014

Equity markets continued to recover from their September/October swoon, as the big three indexes posted a fourth consecutive weekly gain; the S&P established its 41st record high of the year. The down trend in oil persisted, as prices hit four-year lows during the week before bouncing back slightly on speculation of an OPEC production cut. The CBOE Volatility Index inched higher but remained well below its mid-October highs, while yield on the benchmark ten-year U.S. Treasury was little changed on the week.

Monday, November 10, 2014

Equity markets continued to recover from their September/October swoon, as earnings and economic data have investors turning back to equities. Both the S&P 500 and DJIA inched to new record highs; the S&P 500 is up more than 9% since it set a six-month low on October 15. Yield on the benchmark ten-year Treasury moved to a one-month high before retreating following the payrolls release.

Monday, November 3, 2014

The market snapback continued last week, as major domestic averages surged on continued strong earnings and economic data, with an unexpected boost from the Bank of Japan. Both the S&P 500 and DJIA finished the week and October at new all-time highs, while Nasdaq closed at a 14-year high. European and Asian markets were also frothy during the week.

Monday, October 27, 2014

Major U.S. averages snapped a four-week losing streak as strong earnings and economic data had investors shaking off concerns about an Ebola case in New York. The S&P 500 delivered its biggest weekly gain since early 2013, while the Nasdaq experienced its strongest week rally since late 2011. After dipping below 2% last week, the yield on the benchmark ten-year U.S. Treasury has rebounded to finish the week around 2.25%.


Footer content