Week Ended July 30, 2010
The major indexes were mixed for the week. The markets got
off to a good start on Monday, helped by news that new home sales had jumped by
nearly 24% in June, well above the modest rise many had forecast. A favorable
report on shipping volumes from FedEx also boosted sentiment. Less welcome
economic data later in the week reversed the gains, however. On Wednesday, the
Commerce Department reported a decline in June durable goods orders, and the
Federal Reserve's "beige book" summary of regional economic activity
indicated that the recovery was slowing in some parts of the country. On
Friday, the Commerce Department's advance estimate of gross domestic product
(GDP) in the second quarter confirmed that growth had decelerated. Markets
initially fell sharply in response to news that GDP had risen at an annual rate
of 2.4% in the second quarter, well below its 3.7% pace earlier in the year.
Stocks reversed their losses and ended flat for the final trading day of the
week, however, as investors appeared to take heart in a report showing
increased factory activity in the Chicago region in July, along with a small
uptick in a consumer sentiment gauge from earlier in the month.
|
U.S. Stocks1 |
|||
|
Index2 |
Friday's
Close |
Week's
Change |
% Change |
|
DJIA |
10465.94 |
41.32 |
0.36% |
|
S&P 500 |
1101.60 |
-1.06 |
-1.21% |
|
NASDAQ Composite |
2254.70 |
-14.77 |
-0.64% |
|
S&P MidCap 400 |
760.27 |
-3.24 |
4.62% |
|
Russell 2000 |
651.80 |
1.30 |
2.80% |
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 July 30, 2010
U.S. Treasuries rallied as yields, which move opposite to
bond prices, ended the week lower. The yield on the two-year note hit an
all-time low. Despite positive earnings reports from many major U.S. companies,
which would normally favor stocks over low-risk bonds, traders focused on signs
of a slowing economic recovery. Consumer confidence continues to be weak. On
Tuesday, the Conference Board reported that its index fell several points in
July, coming in slightly lower than market expectations. The week ended with
the Commerce Department's release of its advance estimate of second-quarter
gross domestic product (GDP). The measure of total output indicated that the
economy grew at a rate of 2.4%, lower than the upwardly revised 3.7% pace in
the first quarter. Strong growth in housing and business investment offset a
tepid advance in consumer spending, the largest component of U.S. economic
activity. A widening trade deficit was a major factor in the lower growth rate,
although some analysts regarded the surge in imports relative to exports as a
somewhat encouraging sign of strong demand. The GDP price index, a measure of
prices paid by U.S. residents, rose modestly on an annualized basis, helping to
dispel fears about deflation.
|
U.S. Treasury Yields1 |
||
|
Maturity |
July 30,
2010 |
July 23,
2010 |
|
2-Year |
0.55% |
0.58% |
|
10-Year |
2.90% |
2.99% |
|
30-Year |
3.97% |
4.01% |
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 30, 2010.
___________
Week Ended July 23, 2010
·
International Currency Markets
Foreign stock markets closed higher for the week ending
July 23, 2010 with the broad international measure, the MSCI EAFE Index
(Europe, Australasia, and Far East), gaining 1.49%.
|
|
||
|
Region/Country |
Week's
Return |
% Change
Year-to-Date |
|
EAFE |
1.49% |
-6.09% |
|
Europe ex-U.K. |
1.44% |
-9.35% |
|
Denmark |
-0.69% |
13.51% |
|
France |
2.00% |
-13.78% |
|
Germany |
1.05% |
-7.38% |
|
Italy |
1.28% |
-18.25% |
|
Netherlands |
2.11% |
-4.65% |
|
Spain |
2.78% |
-20.17% |
|
Sweden |
1.59% |
11.47% |
|
Switzerland |
0.04% |
-3.71% |
|
United Kingdom |
3.40% |
-4.66% |
|
Japan |
-0.84% |
-0.99% |
|
AC Far East ex-Japan |
2.29% |
0.80% |
|
Hong Kong |
2.45% |
0.93% |
|
Korea |
1.81% |
1.91% |
|
Malaysia |
0.95% |
13.41% |
|
Singapore |
0.24% |
4.24% |
|
Taiwan |
1.54% |
-5.40% |
|
Thailand |
1.95% |
15.83% |
|
EM Latin America |
6.40% |
-0.98% |
|
Brazil |
7.41% |
-5.39% |
|
Mexico |
4.16% |
4.32% |
|
Argentina |
7.43% |
13.39% |
|
EM (Emerging Markets) |
3.48% |
0.74% |
|
Hungary |
-5.60% |
-15.11% |
|
India |
0.45% |
3.48% |
|
Israel |
-0.21% |
-5.61% |
|
Russia |
4.57% |
-0.58% |
|
Turkey |
4.09% |
13.02% |
International bond markets in developed countries were
lower this week, with the J.P. Morgan Global Government Bond Less U.S. Index
losing -0.83%.
|
|
||
|
Region/Country |
Week's
Return |
% Change
Year-to-Date |
|
Developed Markets |
-0.83% |
1.15% |
|
Europe |
|
|
|
Denmark |
-1.35% |
-3.18% |
|
France |
-1.25% |
-5.17% |
|
Germany |
-1.35% |
-4.93% |
|
Italy |
-0.41% |
-8.94% |
|
Spain |
-0.29% |
-10.52% |
|
Sweden |
-0.75% |
1.85% |
|
United Kingdom |
-0.61% |
0.30% |
|
Japan |
-0.91% |
9.26% |
|
Emerging Markets |
1.47% |
8.93% |
|
Argentina |
3.05% |
8.57% |
|
Brazil |
0.92% |
8.80% |
|
Bulgaria |
0.36% |
2.72% |
|
Russia |
1.00% |
5.65% |
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 |
87.290 |
1.00% |
-6.65% |
|
Euro |
1.28181 |
1.03% |
10.66% |
|
British pound |
1.54041 |
-0.38% |
4.61% |
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.