Week Ended July 23, 2010
Stocks ended higher despite
a midweek setback; smaller-cap indexes performed particularly well. Generally
positive earnings reports appeared to outweigh mainly negative economic data.
Stocks managed a good gain on Tuesday despite a report from the Commerce
Department that housing starts had fallen in June to their lowest level in
eight months, adding to a series of data showing renewed weakening in the
housing sector. On Wednesday, testimony from Fed Chairman Ben Bernanke that the
U.S. economic outlook was "unusually uncertain" wiped out the
previous day's gains. Sentiment improved on Thursday, however, due in part to
positive outlooks from major industrials firms, which suggested the world
economic recovery was on solid footing. The week ended on a high note, as
investors appeared to welcome clarity provided by release of the euro zone's
stress on the European banking system. Similar tests in the U.S. in the spring
of 2009 were credited by some with fortifying investors' faith in the financial
system, enabling many U.S. banks to raise private capital and bolster their
balance sheets.
|
U.S.
Stocks1 |
|||
|
Index2 |
Friday's Close |
Week's Change |
% Change |
|
DJIA |
10424.62 |
326.72 |
-0.03% |
|
S&P
500 |
1102.66 |
37.79 |
-1.12% |
|
NASDAQ
Composite |
2269.47 |
90.42 |
0.01% |
|
S&P
MidCap 400 |
763.51 |
36.55 |
5.07% |
|
Russell
2000 |
650.50 |
38.09 |
2.59% |
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 July 23, 2010
Federal Reserve Chairman
Ben Bernanke testified before Congress during the week and tried to alleviate
fears on Capitol Hill that the economic recovery is losing momentum. Consumers
have not resumed spending, corporations are hoarding cash rather than hiring
unemployed workers and expanding operations, and the housing market is still
stagnating despite historically low mortgage rates. Bernanke said that the Fed
stands ready to do its part to bolster the economy if the situation does not
improve. Interest rates remain at record lows, so there is not much the Fed can
do regarding interest rate policy to provide stimulus. Bernanke is not too
concerned that the economy will slip back into a recession, nor is he worried
about the prospect of deflation—generally falling prices—even
though inflation is virtually nonexistent. Still, the Fed chairman noted that
the outlook is "unusually uncertain" and stands ready to adopt new
measures if conditions call for them, including buying mortgages and government
debt and adopting programs to encourage more lending to businesses and
consumers. Treasury yields ended the week mostly higher.
|
U.S.
Treasury Yields1 |
||
|
Maturity |
July 23, 2010 |
July 16, 2010 |
|
2-Year |
0.58% |
0.58% |
|
10-Year |
2.99% |
2.93% |
|
30-Year |
4.01% |
3.95% |
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, July 23, 2010.
___________
Week Ended July 16, 2010
International
Stocks
Foreign stock markets closed higher for the week ending July 16,
2010 with the broad international measure, the MSCI EAFE Index (Europe,
Australasia, and Far East), gaining 1.22%.
|
|
||
|
Region/Country |
Week's Return |
% Change Year-to-Date |
|
EAFE |
1.22% |
-7.47% |
|
Europe ex-U.K. |
1.61% |
-10.64% |
|
Denmark |
3.43% |
14.30% |
|
France |
1.14% |
-15.47% |
|
Germany |
2.20% |
-8.35% |
|
Italy |
0.87% |
-19.29% |
|
Netherlands |
2.54% |
-6.62% |
|
Spain |
1.15% |
-22.33% |
|
Sweden |
3.13% |
9.72% |
|
Switzerland |
0.54% |
-3.75% |
|
United
Kingdom |
2.08% |
-7.80% |
|
Japan |
0.06% |
-0.16% |
|
AC
Far East ex-Japan |
-0.05% |
-1.45% |
|
Hong Kong |
-0.07% |
-1.48% |
|
Korea |
0.11% |
0.09% |
|
Malaysia |
0.56% |
12.34% |
|
Singapore |
1.92% |
3.99% |
|
Taiwan |
0.65% |
-6.83% |
|
Thailand |
0.10% |
13.61% |
|
EM
Latin America |
-2.18% |
-6.94% |
|
Brazil |
-3.13% |
-11.92% |
|
Mexico |
-1.39% |
0.15% |
|
Argentina |
-1.66% |
5.54% |
|
EM
(Emerging Markets) |
-0.23% |
-2.64% |
|
Hungary |
1.22% |
-10.08% |
|
India |
0.64% |
3.02% |
|
Israel |
2.96% |
-5.41% |
|
Russia |
2.12% |
-4.93% |
|
Turkey |
2.31% |
8.58% |
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
2.47%.
|
|
||
|
Region/Country |
Week's Return |
% Change Year-to-Date |
|
Developed
Markets |
2.47% |
2.00% |
|
Europe |
|
|
|
Denmark |
2.56% |
-1.86% |
|
France |
2.57% |
-3.97% |
|
Germany |
2.51% |
-3.62% |
|
Italy |
2.22% |
-8.56% |
|
Spain |
3.91% |
-10.26% |
|
Sweden |
2.27% |
2.62% |
|
United
Kingdom |
1.51% |
0.92% |
|
Japan |
2.87% |
10.27% |
|
Emerging
Markets |
1.01% |
7.36% |
|
Argentina |
1.39% |
5.35% |
|
Brazil |
1.14% |
7.81% |
|
Bulgaria |
0.58% |
2.35% |
|
Russia |
0.94% |
4.61% |
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 |
86.415 |
-2.40% |
-7.73% |
|
Euro |
1.29521 |
-2.52% |
9.73% |
|
British
pound |
1.53451 |
-1.56% |
4.98% |
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.