Week Ended August 6, 2010
Stocks ended mostly higher for
the week, although the small-cap Russell 2000 Index was flat. The major indexes
rallied to start the week, thanks in part to good news from European banks,
which raised hopes for U.S. bank profits. Energy shares also provided a boost,
as investors were heartened by a rise in crude prices brought about by a
decline in the U.S. dollar. Finally, investors were encouraged by a positive
reading on the Institute for Supply Management's gauge of manufacturing
activity, which was mirrored Thursday in a separate report on service sector
activity. Investor optimism evaporated Friday morning, however, when the Labor Department
reported that payrolls had declined again in July, while more jobs were lost in
June than previously estimated. Although the decrease in payrolls of 131,000
was due mainly to the loss of more short-term census positions, investors were
also discouraged that private employers created only 71,000 jobs, well below
the pace of March and April. Also worrisome was a small drop in temporary
employment, which typically indicates how the overall job market will fare in
the few months ahead. A rise in health care and consumer staples stocks helped
trim the day's losses, however.
|
U.S. Stocks1 |
|||
|
Index2 |
Friday's Close |
Week's Change |
% Change |
|
DJIA |
10653.56 |
187.62 |
2.16% |
|
S&P 500 |
1121.64 |
20.04 |
0.59% |
|
NASDAQ
Composite |
2288.47 |
33.77 |
0.85% |
|
S&P
MidCap 400 |
771.93 |
11.66 |
6.23% |
|
Russell 2000 |
650.46 |
-1.34 |
2.58% |
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 August 6, 2010
Interest rates continued to
fall last week amid signs of slowing economic growth. The average rate for
30-year fixed mortgages declined to 4.49%, the lowest level since Freddie Mac
started to track them in 1971. Before that, most mortgages lasted just 20 or 25
years. So far, the historically low housing loans have failed to spur much
activity in the housing market. The news on the labor front left much to be
desired. According to the Labor Department, initial jobless claims jumped to
479,000 from 460,000 the previous week. Private payrolls shrunk by 131,000
jobs, more than expected, and the nation's unemployment rate remained at 9.5%.
Without a pickup in hiring, it is unlikely that the economy will be able to
rebound beyond its sluggish growth rate. Treasury yields were mostly lower,
although the 30-year yield ended slightly higher than it did a week ago.
|
U.S.
Treasury Yields1 |
||
|
Maturity |
August 6, 2010 |
July 30, 2010 |
|
2-Year |
0.50% |
0.55% |
|
10-Year |
2.81% |
2.90% |
|
30-Year |
3.99% |
3.97% |
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, August 6, 2010.
___________
Week Ended July 30, 2010
International
Stocks
Foreign stock markets closed higher for the week ending July 30,
2010 with the broad international measure, the MSCI EAFE Index (Europe,
Australasia, and Far East), gaining 1.51%.
|
|
||
|
Region/Country |
Week's Return |
% Change Year-to-Date |
|
EAFE |
1.51% |
-4.67% |
|
Europe ex-U.K. |
1.75% |
-7.77% |
|
Denmark |
1.11% |
14.77% |
|
France |
2.42% |
-11.70% |
|
Germany |
1.18% |
-6.29% |
|
Italy |
3.84% |
-15.11% |
|
Netherlands |
0.33% |
-4.34% |
|
Spain |
3.16% |
-17.64% |
|
Sweden |
0.83% |
12.39% |
|
Switzerland |
0.84% |
-2.90% |
|
United
Kingdom |
0.74% |
-3.96% |
|
Japan |
1.83% |
0.82% |
|
AC Far
East ex-Japan |
1.11% |
1.92% |
|
Hong Kong |
1.13% |
2.07% |
|
Korea |
1.49% |
3.43% |
|
Malaysia |
1.75% |
15.40% |
|
Singapore |
2.26% |
6.60% |
|
Taiwan |
1.05% |
-4.41% |
|
Thailand |
2.02% |
18.17% |
|
EM
Latin America |
1.19% |
0.20% |
|
Brazil |
1.84% |
-3.65% |
|
Mexico |
-0.46% |
3.84% |
|
Argentina |
1.47% |
15.05% |
|
EM
(Emerging Markets) |
1.10% |
1.85% |
|
Hungary |
4.97% |
-10.89% |
|
India |
-0.22% |
3.25% |
|
Israel |
-5.82% |
-11.10% |
|
Russia |
1.27% |
0.68% |
|
Turkey |
2.41% |
15.75% |
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
1.49%.
|
|
||
|
Region/Country |
Week's Return |
% Change Year-to-Date |
|
Developed
Markets |
1.49% |
2.65% |
|
Europe |
|
|
|
Denmark |
1.70% |
-1.53% |
|
France |
1.82% |
-3.44% |
|
Germany |
1.65% |
-3.36% |
|
Italy |
2.26% |
-6.88% |
|
Spain |
2.72% |
-8.09% |
|
Sweden |
1.83% |
3.72% |
|
United
Kingdom |
2.19% |
2.49% |
|
Japan |
0.88% |
10.22% |
|
Emerging
Markets |
0.71% |
9.71% |
|
Argentina |
2.52% |
11.30% |
|
Brazil |
0.43% |
9.27% |
|
Bulgaria |
0.77% |
3.51% |
|
Russia |
0.65% |
6.35% |
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 |
86.660 |
-0.73% |
-7.43% |
|
Euro |
1.30281 |
-1.64% |
9.20% |
|
British
pound |
1.56611 |
-1.67% |
3.02% |
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.