Investment Commentary –March 6th, 2018

Year to Date Market Indices as of Market Close March 6th, 2018
Dow 24,884 (0.67%)
S&P 2,728 (2.04%)
NASDAQ 7,372 (6.79%)
Gold $1,335 (1.92%)
OIL $62.47 (3.96%)
US 10Y Treasury 2.882 (47.16%)
Barclay Bond Aggregate (-2.21%)

Stocks end slightly higher as trade uncertainty persists

U.S. stock indexes closed slightly higher on Tuesday, with the tech-heavy Nasdaq leading the pack. The S&P 500 SPX, +0.26% added 7 points, or 0.3%, to 2,728. The Nasdaq Composite Index COMP, +0.56% advanced 41 points, or 0.6%, to 7,372. The Dow Jones Industrial Average DJIA, +0.04% picked up 9 points to 24,884. Equities struggled for direction throughout the day as investors questioned whether the White House would implement the steel and aluminum import tariffs discussed on Thursday. House Speaker Paul Ryan and other congressional Republicans have attempted to convince President Donald Trump to water down his tariff plans.

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Choppy February

Stocks fell sharply at the opening of the month, sending the market into a correction on February 8. They later regained some of their losses, but the S&P 500 fell 3.9% for the month, and there were 12 trading days with moves of at least 1% up or down—the most since January 2016.

Policy worries

Statements from Federal Reserve Chairman Jerome Powell and President Donald Trump triggered at least some of the week’s market sell-off. Powell’s congressional testimony raised alarm about the pace of interest-rate increases, while the president’s threat to impose tariffs on steel and aluminum imports stoked global trade tensions.

Upcoming events:

ADP National Employment Report, ADP
U.S. Federal Reserve

Monthly jobs and unemployment, U.S. Bureau of Labor Statistics

Other Notable Indices (YTD)
Russell 2000 (small caps) 0.85
EAFE International -1.65
EAFE Emerging Markets 1.52
Shiller Cape Annuity Index 3.25

The views presented are not intended to be relied on as a forecast, research or investment advice and are the opinions of the sources cited and are subject to change based on subsequent developments. They are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investments.