U.S.
Stock Market
Week Ended June 10, 2011
Stocks
suffered their sixth consecutive week of losses as investors worried that the
global economy may be slowing. The losses caused the technology-oriented Nasdaq
and small-cap Russell 2000 indexes to move back into negative territory for the
year. Relatively few economic reports appeared during the week, but the data
that emerged offered only minimal comfort to those concerned with last week's
poor jobs figures. In particular, weekly jobless claims ticked slightly higher,
continuing a multi-week trend of job losses in excess of 400,000. On Thursday,
the Commerce Department reported that the U.S. trade deficit had come in
modestly lower than expected for April, although that followed on the heels of
news that Europe's two largest economies, France and Germany, had seen a sharp
drop in export volumes for the month. Meanwhile, Moody's rattled investors'
nerves somewhat by suggesting that the U.K. might lose its AAA credit rating
despite having undertaken a sweeping austerity program. On Friday, news that
China's export growth had slowed helped drive another steep decline, as did a
substantial drop in oil prices, which weighed on energy shares. Federal Reserve
Chairman Ben Bernanke may have helped set the negative tone for the week by
acknowledging a "loss of momentum" in the job market. "Until we
see a sustained period of stronger job creation," he warned in a speech
before a banking conference on Tuesday, "we cannot consider the recovery
to be truly established."
|
U.S. Stocks1 |
|||
|
Index2 |
Friday's Close |
Week's Change |
% Change |
|
DJIA |
11951.91 |
-199.50 |
3.23% |
|
S&P 500 |
1270.98 |
-29.18 |
1.06% |
|
NASDAQ Composite |
2643.73 |
-89.05 |
-0.34% |
|
S&P MidCap 400 |
931.94 |
-29.31 |
2.72% |
|
Russell 2000 |
779.00 |
-28.93 |
-0.80% |
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 10, 2011
Federal
Reserve Chairman Ben Bernanke offered a relatively downbeat view of the U.S.
economy, acknowledging that it is growing at a slower rate than expected,
although he thought it would pick up during the second half of the year.
"Although it is moving in the right direction, the economy is still
producing at levels well below its potential," he said. He added that it
was facing headwinds from higher energy and food costs, which are tempering
consumer spending and also from the effects of the disaster in Japan. As a
result, Bernanke expects the Fed's accommodative monetary policies to remain in
place until we see a sustained period of stronger job creation and a lower
unemployment rate. His remarks underscored the likelihood that historically low
interest rates will be with us through the foreseeable future. For the first
time this year, the economy slowed in several U.S. regions during the spring;
Dallas was the only area to experience accelerating growth, since the region
benefits from higher oil prices. The unwelcome news drove Treasury yields lower
again, with the 10-year note falling further below the 3% mark.
|
U.S. Treasury Yields1 |
||
|
Maturity |
June 10, 2011 |
June 3, 2011 |
|
2-Year |
0.40% |
0.43% |
|
10-Year |
2.97% |
2.99% |
|
30-Year |
4.18% |
4.23% |
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 10,
2011.
___________
International Stocks
Foreign stock markets closed lower for
the week ending June 03, 2011 with the broad international measure, the MSCI
EAFE Index (Europe, Australasia, and Far East), losing -0.1%.
|
|
||
|
Region/Country |
Week's Return |
% Change Year-to-Date |
|
EAFE |
-0.10% |
5.02% |
|
Europe ex-U.K. |
1.18% |
12.31% |
|
Denmark |
2.42% |
8.86% |
|
France |
0.98% |
14.02% |
|
Germany |
1.51% |
11.58% |
|
Italy |
2.07% |
14.79% |
|
Netherlands |
0.80% |
8.01% |
|
Spain |
2.61% |
15.90% |
|
Sweden |
0.01% |
10.95% |
|
Switzerland |
0.94% |
14.14% |
|
United Kingdom |
-1.73% |
5.95% |
|
Japan |
-0.57% |
-7.82% |
|
AC Far East ex-Japan |
0.70% |
4.05% |
|
Hong Kong |
0.46% |
0.70% |
|
Korea |
0.34% |
8.89% |
|
Malaysia |
1.49% |
6.37% |
|
Singapore |
0.61% |
2.66% |
|
Taiwan |
3.42% |
2.27% |
|
Thailand |
-1.53% |
4.12% |
|
EM Latin America |
0.29% |
-1.85% |
|
Brazil |
1.02% |
-1.30% |
|
Mexico |
-2.52% |
-3.90% |
|
Argentina |
-3.08% |
-15.21% |
|
EM (Emerging Markets) |
0.77% |
1.55% |
|
Hungary |
3.54% |
25.71% |
|
India |
1.57% |
-10.52% |
|
Israel |
2.50% |
-4.52% |
|
Russia |
-0.13% |
7.74% |
|
Turkey |
3.59% |
-7.11% |
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 1.17%.
|
|
||
|
Region/Country |
Week's Return |
% Change Year-to-Date |
|
Developed Markets |
1.17% |
5.39% |
|
Europe |
|
|
|
Denmark |
2.21% |
8.84% |
|
France |
1.97% |
8.87% |
|
Germany |
1.79% |
8.33% |
|
Italy |
2.95% |
11.74% |
|
Spain |
2.82% |
12.18% |
|
Sweden |
1.05% |
12.66% |
|
United Kingdom |
-0.52% |
7.13% |
|
Japan |
0.59% |
1.23% |
|
Emerging Markets |
0.77% |
4.00% |
|
Argentina |
0.68% |
-1.22% |
|
Brazil |
0.45% |
4.83% |
|
Bulgaria |
0.32% |
3.44% |
|
Russia |
0.94% |
4.83% |
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 |
80.530 |
-0.55% |
-0.17% |
|
Euro |
1.45671 |
-2.15% |
-6.29% |
|
British pound |
1.63631 |
0.61% |
-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.