Week Ended September 24,
2010
Stocks recorded their
fourth consecutive week of gains and ended higher despite a midweek slump. The
large-cap indexes reached their highest levels in four months on Monday.
Investors appeared to be encouraged by another prominent merger in the
technology sector. Enthusiasm over the S&P 500 reaching a closely watched
support level may also have boosted sentiment among technical traders who
believe stock prices follow predictable patterns. The major indexes turned
lower on Wednesday, however. Investors appeared to ruminate over the Federal
Reserve's announcement on Tuesday that the central bank would "provide
additional accommodation if needed to support the economic recovery"—a
sign that policymakers remained concerned about recent weakness in economic
data. Stocks fell again on Thursday in response to a rise in weekly jobless
claims, but the indexes' decline may have been limited by new data showing a
healthy increase in sales of existing homes, along with a rise in a gauge of
future economic activity. Stocks ended the week on a strong note. Investors
celebrated a report from the Commerce Department showing a rebound in
nontransportation durable goods spending in August, along with an upward
revision in figures for July.
|
U.S.
Stocks1 |
|||
|
Index2 |
Friday's Close |
Week's Change |
% Change |
|
DJIA |
10860.26 |
252.41 |
4.14% |
|
S&P
500 |
1148.67 |
23.08 |
3.01% |
|
NASDAQ
Composite |
2381.22 |
65.61 |
4.94% |
|
S&P
MidCap 400 |
796.29 |
15.48 |
9.58% |
|
Russell
2000 |
669.74 |
17.28 |
5.63% |
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 24,
2010
U.S. Treasury yields ended
lower on the week, pushing prices higher. Tuesday's meeting of the Federal Open
Market Committee (FOMC) seemed to be a major catalyst for the increased demand
for Treasuries as yields fell sharply following the FOMC's announcement. In its
statement, the Committee reiterated that recent data indicate a slowing
economic recovery. Consumer spending, the largest component of the domestic
economy, has increased but remains constrained by tight lending standards and
weak labor and housing markets. Business spending also continues to rise,
albeit at a slower pace in recent months. The statement did not indicate
concern about deflation, but it noted that the inflation rate is currently
below the level the Fed deems necessary to meet its dual mandate of price
stability and maximum employment. Without providing specifics, the Committee
said it "is prepared to provide additional accommodation if needed"
to help stimulate the economy and gradually achieve its inflation target.
Buyers of government bonds were encouraged by the combination of a cautious
economic growth outlook, low inflation, and the implication for additional Fed
purchases of Treasury securities. However, sellers emerged on Friday following
a better-than-expected Commerce Department report on orders for manufactured
goods.
|
U.S.
Treasury Yields1 |
||
|
Maturity |
September 24, 2010 |
September 17, 2010 |
|
2-Year |
0.44% |
0.46% |
|
10-Year |
2.61% |
2.74% |
|
30-Year |
3.79% |
3.91% |
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 24, 2010.
___________
Week Ended September 17,
2010
International
Stocks
Foreign stock markets closed higher for the week ending
September 17, 2010 with the broad international measure, the MSCI EAFE Index
(Europe, Australasia, and Far East), gaining 1.62%.
|
|
||
|
Region/Country |
Week's Return |
% Change Year-to-Date |
|
EAFE |
1.62% |
-1.25% |
|
Europe ex-U.K. |
1.78% |
-5.43% |
|
Denmark |
1.39% |
16.24% |
|
France |
2.44% |
-9.23% |
|
Germany |
2.54% |
-4.86% |
|
Italy |
0.79% |
-16.51% |
|
Netherlands |
2.19% |
-4.64% |
|
Spain |
1.40% |
-17.03% |
|
Sweden |
3.50% |
18.71% |
|
Switzerland |
-0.05% |
2.82% |
|
United
Kingdom |
1.75% |
1.05% |
|
Japan |
0.46% |
2.31% |
|
AC
Far East ex-Japan |
2.91% |
8.48% |
|
Hong Kong |
3.45% |
12.20% |
|
Korea |
2.01% |
8.84% |
|
Malaysia |
2.44% |
28.89% |
|
Singapore |
1.78% |
11.94% |
|
Taiwan |
4.16% |
2.15% |
|
Thailand |
-0.34% |
34.17% |
|
EM
Latin America |
1.04% |
3.19% |
|
Brazil |
0.72% |
-2.31% |
|
Mexico |
2.28% |
5.36% |
|
Argentina |
1.48% |
28.57% |
|
EM
(Emerging Markets) |
2.33% |
6.90% |
|
Hungary |
4.07% |
-7.82% |
|
India |
5.56% |
13.67% |
|
Israel |
1.37% |
-4.33% |
|
Russia |
-1.75% |
-0.45% |
|
Turkey |
5.95% |
23.71% |
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
0.33%.
|
|
||
|
Region/Country |
Week's Return |
% Change Year-to-Date |
|
Developed
Markets |
0.33% |
3.84% |
|
Europe |
|
|
|
Denmark |
2.13% |
0.80% |
|
France |
1.94% |
-1.95% |
|
Germany |
2.21% |
-1.55% |
|
Italy |
2.00% |
-6.19% |
|
Spain |
2.16% |
-8.01% |
|
Sweden |
2.36% |
7.42% |
|
United
Kingdom |
1.58% |
4.31% |
|
Japan |
-1.43% |
11.17% |
|
Emerging
Markets |
0.41% |
12.23% |
|
Argentina |
5.75% |
19.15% |
|
Brazil |
1.32% |
12.45% |
|
Bulgaria |
0.14% |
5.83% |
|
Russia |
0.01% |
9.45% |
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 |
85.855 |
1.87% |
-8.43% |
|
Euro |
1.30461 |
-2.51% |
9.07% |
|
British
pound |
1.56351 |
-1.63% |
3.18% |
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.