Week Ended September 3,
2010
Stocks enjoyed their best week
in nearly two months and rebounded from a three-week losing streak. The week
started out on a down note, as investors bid stocks lower on Monday. A
disappointing report on personal income gains appeared to weigh on sentiment
during what proved to be the lowest-volume trading day of the year. On
Wednesday, however, the market reversed course and shot higher in response to a
welcome reversal in the tone of economic data. The Institute for Supply
Management reported a pickup in manufacturing activity in August, which
surprised many experts given a recent string of slowdowns in regional
manufacturing surveys. Investors were also encouraged by a similar acceleration
in Chinese factory activity. On Friday, stocks received another large boost
from the monthly payrolls report. The Labor Department reported that
unemployment had ticked higher in August, while total payrolls had contracted
by 54,000, largely due to the loss of more temporary Census positions. However,
private sector payrolls had expanded by 67,000 jobs, more than generally
expected. Payroll data from previous months were also revised upward. Further
merger and acquisition activity provided stocks an additional lift during the
week.
|
U.S. Stocks1 |
|||
|
Index2 |
Friday's Close |
Week's Change |
% Change |
|
DJIA |
10447.93 |
297.28 |
0.19% |
|
S&P
500 |
1104.51 |
39.92 |
-0.95% |
|
NASDAQ
Composite |
2233.75 |
80.12 |
-1.56% |
|
S&P
MidCap 400 |
766.52 |
32.22 |
5.48% |
|
Russell
2000 |
643.24 |
26.16 |
1.45% |
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 September 3,
2010
During their last meeting
in August, Federal Reserve officials indicated that the economy might need
additional stimulus measures designed to lower interest rates on a range of
consumer loans. If necessary, these measures would go beyond the modest
program, which was recently announced, of investing proceeds from the Fed's
mortgage portfolio in Treasury securities. The minutes of the meeting did not
specify precisely what new steps might be taken. However, the minutes do
underline the Fed's concern about the weakness of the economic rebound. The
latest figures show that U.S. unemployment in August rose to 9.6% from 9.5% in
July. Payrolls contracted by 54,000 during the month, due mainly to the loss of
temporary Census positions. Private sector payrolls increased by 67,000,
however, more than generally anticipated. Longer-term Treasury yields rose
during the week, reflecting the better-than-expected economic data.
|
U.S. Treasury Yields1 |
||
|
Maturity |
September 3, 2010 |
August 27, 2010 |
|
2-Year |
0.51% |
0.56% |
|
10-Year |
2.71% |
2.65% |
|
30-Year |
3.79% |
3.70% |
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, September 3, 2010.
___________
Week Ended August 27, 2010
International
Stocks
Foreign stock markets closed lower for the week ending August
27, 2010 with the broad international measure, the MSCI EAFE Index (Europe,
Australasia, and Far East), losing -0.18%.
|
|
||
|
Region/Country |
Week's Return |
% Change Year-to-Date |
|
EAFE |
-0.18% |
-7.50% |
|
Europe ex-U.K. |
-0.02% |
-11.99% |
|
Denmark |
-0.59% |
8.46% |
|
France |
-0.09% |
-16.77% |
|
Germany |
-0.61% |
-11.45% |
|
Italy |
0.31% |
-21.11% |
|
Netherlands |
-0.21% |
-11.17% |
|
Spain |
0.77% |
-22.38% |
|
Sweden |
0.50% |
6.65% |
|
Switzerland |
0.70% |
-1.82% |
|
United
Kingdom |
-0.09% |
-5.64% |
|
Japan |
-0.50% |
-0.85% |
|
AC
Far East ex-Japan |
-1.97% |
0.77% |
|
Hong Kong |
-0.56% |
3.16% |
|
Korea |
-3.48% |
0.45% |
|
Malaysia |
0.78% |
21.32% |
|
Singapore |
0.48% |
5.12% |
|
Taiwan |
-2.36% |
-4.49% |
|
Thailand |
-0.20% |
25.96% |
|
EM
Latin America |
-0.97% |
-1.58% |
|
Brazil |
-0.97% |
-6.27% |
|
Mexico |
-3.58% |
-0.31% |
|
Argentina |
-6.06% |
20.23% |
|
EM
(Emerging Markets) |
-1.79% |
-0.10% |
|
Hungary |
-2.89% |
-15.89% |
|
India |
-3.14% |
2.23% |
|
Israel |
-1.71% |
-9.72% |
|
Russia |
-0.93% |
-3.23% |
|
Turkey |
0.78% |
12.95% |
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
0.53%.
|
|
||
|
Region/Country |
Week's Return |
% Change Year-to-Date |
|
Developed
Markets |
0.53% |
4.12% |
|
Europe |
|
|
|
Denmark |
1.32% |
0.29% |
|
France |
0.87% |
-2.61% |
|
Germany |
0.96% |
-2.39% |
|
Italy |
0.29% |
-7.67% |
|
Spain |
0.14% |
-9.45% |
|
Sweden |
1.58% |
5.02% |
|
United
Kingdom |
0.92% |
5.36% |
|
Japan |
0.35% |
12.89% |
|
Emerging
Markets |
-1.27% |
12.43% |
|
Argentina |
-6.34% |
9.72% |
|
Brazil |
-1.74% |
11.70% |
|
Bulgaria |
0.12% |
4.95% |
|
Russia |
-0.74% |
9.11% |
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 |
84.980 |
-0.89% |
-9.55% |
|
Euro |
1.27191 |
-0.26% |
11.35% |
|
British
pound |
1.54741 |
0.22% |
4.18% |
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.