Week Ended August 20, 2010
The large-cap stock indexes fell for the second
consecutive week, but the smaller-cap indexes and the technology-oriented
Nasdaq managed minor gains. Stocks moved solidly higher on Tuesday as investors
welcomed news of a major takeover offer in the mining industry alongside news
of surprisingly good earnings at retail giant Wal-Mart. Investors were also
encouraged by reports of rises in wholesale prices and industrial production in
July—positive
economic data that stood in contrast to a recent string of reports showing a
slowdown in the economic recovery. Those worrisome signals reappeared on
Thursday, however, when the Labor Department reported a rise in weekly jobless
claims to 500,000, the highest level since last fall. A surprising and
significant decline in a gauge of a regional manufacturing activity also
weighed on sentiment and overshadowed news of a major merger in the technology
sector. Stocks fell further on Friday in response to a decline in the euro, but
hopes for further merger activity appeared to help limit losses as the trading
week came to a close.
|
U.S. Stocks1 |
|||
|
Index2 |
Friday's
Close |
Week's
Change |
% Change |
|
DJIA |
10213.62 |
-89.53 |
-2.06% |
|
S&P 500 |
1071.69 |
-7.56 |
-3.89% |
|
NASDAQ Composite |
2179.76 |
6.28 |
-3.94% |
|
S&P MidCap 400 |
736.52 |
1.93 |
1.35% |
|
Russell 2000 |
610.67 |
0.82 |
-3.69% |
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 20, 2010
Treasury yields continued to slide last week against the
backdrop of weak economic data. For the first time since November 2009, initial
claims for unemployment benefits rose above 500,000 during the week ended
August 14, 2010, according to the Labor Department. It was the fourth weekly
increase in unemployment claims during the past five weeks. Large corporations
continued to trim payroll expenses, and small businesses have been cutting
staff because of the lack of consumer demand for their products and services.
The news dampened hopes for an imminent improvement in the nation's job market.
If that were not bad enough, the Federal Reserve of Philadelphia announced that
manufacturing activity in the Mid-Atlantic region dropped in August. The only
positive news was that corporate profits have been healthy, partly reflecting
the lower labor costs, and mergers and acquisitions have been picking up, which
is an indication that companies are willing to spend their capital to broaden their
business franchises. So far, the U.S. economic upturn has come at the expense
of the labor market, which shows no immediate signs of improving.
|
U.S. Treasury Yields1 |
||
|
Maturity |
August 20,
2010 |
August 13,
2010 |
|
2-Year |
0.50% |
0.53% |
|
10-Year |
2.61% |
2.68% |
|
30-Year |
3.66% |
3.86% |
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 20, 2010.
___________
Week Ended August 13, 2010
·
International Currency Markets
Foreign stock markets closed lower for the week ending
August 13, 2010 with the broad international measure, the MSCI EAFE Index
(Europe, Australasia, and Far East), losing -4.72%.
|
|
||
|
Region/Country |
Week's
Return |
% Change
Year-to-Date |
|
EAFE |
-4.72% |
-6.17% |
|
Europe ex-U.K. |
-5.85% |
-10.24% |
|
Denmark |
-4.84% |
13.73% |
|
France |
-6.60% |
-14.37% |
|
Germany |
-6.43% |
-8.89% |
|
Italy |
-6.40% |
-18.46% |
|
Netherlands |
-5.97% |
-9.00% |
|
Spain |
-7.44% |
-20.92% |
|
Sweden |
-7.82% |
7.42% |
|
Switzerland |
-2.27% |
-2.62% |
|
United Kingdom |
-3.35% |
-3.75% |
|
Japan |
-4.85% |
-0.93% |
|
AC Far East ex-Japan |
-2.45% |
1.94% |
|
Hong Kong |
-0.85% |
4.81% |
|
Korea |
-4.01% |
2.41% |
|
Malaysia |
-0.75% |
16.23% |
|
Singapore |
-2.84% |
4.80% |
|
Taiwan |
-1.22% |
-2.40% |
|
Thailand |
-1.56% |
19.76% |
|
EM Latin America |
-2.86% |
-1.45% |
|
Brazil |
-3.44% |
-6.03% |
|
Mexico |
-2.75% |
2.82% |
|
Argentina |
-0.36% |
23.65% |
|
EM (Emerging Markets) |
-2.91% |
0.90% |
|
Hungary |
-8.36% |
-13.12% |
|
India |
-1.28% |
3.76% |
|
Israel |
-0.55% |
-9.41% |
|
Russia |
-4.80% |
-1.64% |
|
Turkey |
-4.23% |
11.25% |
International bond markets in developed countries were
lower this week, with the J.P. Morgan Global Government Bond Less U.S. Index
losing -2.27%.
|
|
||
|
Region/Country |
Week's
Return |
% Change
Year-to-Date |
|
Developed Markets |
-2.27% |
2.86% |
|
Europe |
|
|
|
Denmark |
-3.32% |
-1.77% |
|
France |
-3.60% |
-3.91% |
|
Germany |
-3.36% |
-3.77% |
|
Italy |
-4.50% |
-8.13% |
|
Spain |
-5.10% |
-9.98% |
|
Sweden |
-3.98% |
2.61% |
|
United Kingdom |
-1.86% |
3.58% |
|
Japan |
-0.93% |
11.34% |
|
Emerging Markets |
0.70% |
12.06% |
|
Argentina |
1.64% |
17.65% |
|
Brazil |
1.67% |
12.20% |
|
Bulgaria |
-0.08% |
4.46% |
|
Russia |
0.21% |
8.51% |
On the currency front, the U.S. dollar was stronger
against the major currencies for the week. Currency Close Week's
Return % Change Japanese yen 86.350 1.40% -7.81% Euro 1.27611 3.99% 11.06% British pound 1.55861 2.42% 3.49% 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
(August 13, 2010)
(U.S. $)
Year-to-Date (U.S. $)
All charts are for illustrative purposes only and do not represent the
performance of any specific security. Past
performance cannot guarantee future results.