Can the Market
breakout to new record highs?
Markets closed
out a solid week, boosted by a diplomatic solution in Syria and hopes that a
big tapering move by the Fed may be avoided. For the week, the S&P 500
gained 1.98%, the Dow rose 3.04%, and the Nasdaq grew 1.70%.[i]
Tensions over Syria have decreased significantly as the U.S. and Russia
agreed on a proposal to eliminate Syria
Economic data
was a mixed bag last week. Consumer sentiment dropped sharply to a five-month
low in September as higher interest rates took a bite out of confidence.
Americans are worried that rising rates will put a damper on the housing market
and cool economic growth. Respondents were also apprehensive about the Fed’s
fiscal policy and the effect it will have on the job market.[iii] Although
demand for big-ticket items expanded, retail sales rose less than expected in
August as Americans cut back on purchases of clothing, sports equipment, and
other items. Retail sales grew only 0.2% instead of the 0.4% that economists
had expected. This report captured part of the back-to-school shopping season,
the second largest of the year, and shows that third quarter economic growth
may be slowing down.[iv] On the other hand, the
fact that Americans are still making major purchases of automobiles
and appliances suggests that there is still hope for the all-important holiday
shopping season.
Months of
anticipation will finally come to a head this week at the Fed FOMC meeting on
Tuesday and Wednesday. The Fed will make its formal announcement on Wednesday
afternoon and Fed Chairman Ben Bernanke will give additional details in his
follow-up speech. The Fed has telegraphed its intentions to taper, but
investors have convinced themselves that we’re looking at “tapering light,”
i.e. a cut of $10 billion or so in Treasury purchases and this is already
priced into the market. Recent economic data has been mixed, leading analysts
to believe that any tapering will be modest in scope. However, stocks are
already close to historic highs and volatility is currently low, meaning that
any surprises could spook markets into a selloff. As always, we’ll continue to
monitor the situation and keep you informed.
ECONOMIC CALENDAR:
Monday: Empire State
Tuesday: Consumer Price Index, Treasury
International Capital, Housing Market Index
Wednesday: Housing Starts, EIA Petroleum Status
Report, FOMC Meeting Announcement, FOMC Forecasts, Chairman Press Conference
Thursday: Jobless Claims, Existing Home Sales, Philadelphia
HEADLINES:
Oil prices fall on Syria
Fewer homes enter foreclosure in August. The number of houses entering
foreclosure proceedings fell to the lowest level in eight years in August, down
44% from the year before. The national slowdown in foreclosures reflects an
improving housing market, steady job growth, and fewer defaulted loans.[viii]
“You must do the things
you think you cannot do.”
- Eleanor Roosevelt
Share
the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!
Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!
If
you would like to opt-out of future emails, please reply to this email with
UNSUBSCRIBE in the subject line.
i.e.
Securities offered through Aurora Capital” Member
FINRA/SIPC.
Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
Diversification
does not guarantee profit nor is it guaranteed to protect assets
The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30
significant stocks traded on the New York Stock Exchange and the NASDAQ. The
DJIA was invented by Charles Dow back in 1896.
The Nasdaq Composite is an index of the common stocks and similar
securities listed on the NASDAQ stock market and is considered a broad
indicator of the performance of stocks of technology companies and growth
companies.
The MSCI EAFE Index was created by Morgan Stanley Capital
International (MSCI) that serves as a benchmark of the performance
in major international equity markets as represented by 21 major MSCI
indexes from Europe, Australia
and Southeast Asia .
The S&P/Case-Shiller Home Price Indices are the leading measures
of U.S.
The
10-year Treasury Note represents debt owed by the United States Treasury to the
public. Since the U.S. Government is seen as a risk-free borrower, investors
use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google
Finance is the source for any reference to the performance of an index between
two specific periods.
Opinions
expressed are subject to change without notice and are not intended as
investment advice or to predict future performance.
Past
performance does not guarantee future results.
You
cannot invest directly in an index.
Consult
your financial professional before making any investment decision.
Fixed
income investments are subject to various risks including changes in interest
rates, credit quality, inflation risk, market valuations, prepayments,
corporate events, tax ramifications and other factors.
. All information is believed to be from
reliable sources; however, we make no representation as to its completeness or
accuracy. Please consult your financial advisor for further information.
By clicking on these links, you will leave
our server, as they are located on another server. We have not independently
verified the information available through this link. The link is provided to
you as a matter of interest. Please click on the links below to leave and
proceed to the selected site.
