U.S.
Stock Market
Week Ended June 3, 2011
Worries
about the labor market resulted in a fifth consecutive week of losses for the
large-cap indexes. Traders returned from the long weekend on Tuesday in a
bullish mood, encouraged by news that Germany had agreed on a new bailout
package for Greece. Positive sentiment evaporated on Wednesday, however,
leading the S&P 500 to its largest daily decline since last summer.
Investors reacted primarily to a report from the independent payroll processing
firm ADP, which indicated that private payrolls had expanded by only 38,000 in
May—well below ADP's count of 178,000 in
the previous month. Fears of a significant slowdown in hiring were borne out by
the official report from the Labor Department, released on Friday, which showed
that payrolls had increased by only 54,000 in May, the worst showing in several
months. The unemployment rate also ticked upward, from 9.0% to 9.1%. Stocks
took another turn lower to end the week, although losses may have been limited
by a better-than-expected reading on a gauge of service sector activity from
the Institute for Supply Management (ISM). The good news broke a string of disappointing
economic reports, including a large pullback in the ISM's manufacturing gauge,
released at the start of the week.
|
U.S. Stocks1 |
|||
|
Index2 |
Friday's Close |
Week's Change |
% Change |
|
DJIA |
12151.41 |
-290.17 |
4.96% |
|
S&P 500 |
1300.16 |
-30.94 |
3.38% |
|
NASDAQ Composite |
2732.78 |
-64.08 |
3.01% |
|
S&P MidCap 400 |
961.25 |
-28.94 |
5.95% |
|
Russell 2000 |
807.93 |
-28.20 |
2.89% |
This chart is for illustrative purposes only and does not
represent the performance of any specific security. Past performance cannot
guarantee future results.
1Source of data Reuters, obtained through Yahoo! Finance Closing
data as of 4:10 p.m. ET.
2The Dow Jones Industrial Average and the Standard & Poor's 500
Stock Index of blue chip stocks, the Standard & Poor's MidCap 400 Index,
and the Russell 2000 Index are unmanaged indexes representing various segments
by market capitalization of the U.S. equity markets. The Nasdaq Composite is an
unmanaged index representing the companies traded on the Nasdaq stock market
and the National Market System.
____________
Week
Ended June 3, 2011
Sluggish
economic data sent a chill through the financial markets during the week. The
U.S. manufacturing sector registered its largest one-month decline in 27 years
as companies cut back on production. Previously, domestic manufacturing had
been a major driving force in the economic recovery following the recent
recession. In addition, private-sector hiring was also weaker than expected, as
U.S. companies added only 54,000 new jobs in May and the unemployment rate rose
from 9.0% in April to 9.1%. The tepid news sent investors scrambling into the
relatively safe haven of Treasury bonds, pushing the yield on the 10-year note
below 3% for the first time this year (prices and yields move counter to each
other). Yields on other maturities also declined. The rating agency Moody's
sounded an alarm on U.S. Treasury obligations, warning that it might downgrade
the government's top credit rating in July if the White House and the
legislators fail to reach an agreement on cutting the deficit and raising the
debt ceiling.
|
U.S. Treasury Yields1 |
||
|
Maturity |
June 3, 2011 |
May 27, 2011 |
|
2-Year |
0.43% |
0.48% |
|
10-Year |
2.99% |
3.07% |
|
30-Year |
4.23% |
4.24% |
This
table is for illustrative purposes only. Past performance cannot guarantee
future results.
1Source of data: Bloomberg.com, as of 4 p.m. ET Friday, June 3,
2011.
___________
International Stocks
Foreign stock markets closed higher for
the week ending May 27, 2011 with the broad international measure, the MSCI
EAFE Index (Europe, Australasia, and Far East), gaining 0.49%.
|
|
||
|
Region/Country |
Week's Return |
% Change Year-to-Date |
|
EAFE |
0.49% |
5.13% |
|
Europe ex-U.K. |
0.38% |
11.00% |
|
Denmark |
-1.38% |
6.28% |
|
France |
0.27% |
12.91% |
|
Germany |
-0.57% |
9.92% |
|
Italy |
0.61% |
12.45% |
|
Netherlands |
-0.10% |
7.15% |
|
Spain |
1.09% |
12.95% |
|
Sweden |
-0.26% |
10.94% |
|
Switzerland |
2.05% |
13.08% |
|
United Kingdom |
1.53% |
7.82% |
|
Japan |
0.47% |
-7.30% |
|
AC Far East ex-Japan |
-0.58% |
3.32% |
|
Hong Kong |
-1.08% |
0.24% |
|
Korea |
-0.27% |
8.52% |
|
Malaysia |
-0.10% |
4.80% |
|
Singapore |
-0.84% |
2.03% |
|
Taiwan |
-0.76% |
-1.12% |
|
Thailand |
-0.58% |
5.74% |
|
EM Latin America |
2.89% |
-2.14% |
|
Brazil |
3.40% |
-2.29% |
|
Mexico |
1.96% |
-1.41% |
|
Argentina |
-0.21% |
-12.52% |
|
EM (Emerging Markets) |
0.68% |
0.77% |
|
Hungary |
3.17% |
21.41% |
|
India |
-0.44% |
-11.90% |
|
Israel |
-2.66% |
-6.86% |
|
Russia |
2.54% |
7.88% |
|
Turkey |
-2.49% |
-10.33% |
International Bond Markets
International bond markets in developed
countries were higher this week, with the J.P. Morgan Global Government Bond
Less U.S. Index gaining 1.26%.
|
|
||
|
Region/Country |
Week's Return |
% Change Year-to-Date |
|
Developed Markets |
1.26% |
4.17% |
|
Europe |
|
|
|
Denmark |
1.90% |
6.49% |
|
France |
1.52% |
6.77% |
|
Germany |
1.41% |
6.43% |
|
Italy |
1.02% |
8.54% |
|
Spain |
1.75% |
9.11% |
|
Sweden |
1.93% |
11.50% |
|
United Kingdom |
2.36% |
7.69% |
|
Japan |
0.99% |
0.63% |
|
Emerging Markets |
-0.31% |
3.21% |
|
Argentina |
-0.91% |
-1.89% |
|
Brazil |
-0.33% |
4.37% |
|
Bulgaria |
0.24% |
3.11% |
|
Russia |
-0.01% |
3.85% |
International Currency Markets
On the currency front, the U.S. dollar
was weaker against the major currencies for the week.
|
|
|||
|
Currency |
Close |
Week's Return |
% Change |
|
Japanese yen |
80.970 |
-0.83% |
-0.17% |
|
Euro |
1.4261 |
-0.76% |
-6.29% |
|
British pound |
1.64641 |
-1.66% |
-5.16% |
1U.S. dollars per national currency unit.
Sources: Foreign stock markets and
currency sections are from Rimes Technologies, using MSCI data. International
bond markets are from J.P. Morgan.
Note: All returns are in U.S. dollars.
All bond indices are J.P. Morgan. All stock indices are Morgan Stanley Capital
International (MSCI).
|
Equity Indices |
|
|
EAFE: |
MSCI Europe, Australasia, and Far East Index |
|
Europe Ex-U.K.: |
MSCI Europe ex-U.K. Index |
|
Far East Ex-Japan: |
MSCI AC Far East ex-Japan Index |
|
Latin America: |
MSCI Emerging Markets Latin America Index |
|
Emerging Markets: |
MSCI Emerging Markets Index |
|
Bond Indices |
|
|
Developed Markets: |
J.P. Morgan Global Government Bond Less U.S. Index |
|
Emerging Markets: |
J.P. Morgan Emerging Markets Bond Index Plus |
All charts are for illustrative purposes only and do not represent the
performance of any specific security. Past performance cannot guarantee
future results.