Investment Commentary –March 7th, 2017
Market Indices as of Market Close March 7th, 2017
Dow 20,924 (5.88% YTD)
S&P 2,366 (5.76% YTD)
NASDAQ 5,833 (8.37% YTD)
Gold $1,215 (52 Week Low $1,127 High $1,387)
OIL $53.06 (52 Week Low $40.97 High $56.92)
US 10Y Treasury 2.351 (52 Week Low 1.32 High 2.64)
Barclay Bond Aggregate (0.23% YTD) Our new reporting index to include broad market bond performance
Wall Street dips as pharma, bank stocks retreat
U.S. stock prices dipped on Tuesday, as weakness in drug and financial shares put the S&P 500 and the Dow Jones Industrial Average on pace to register their first consecutive declines in more than a month. Pharmaceutical stocks came under pressure after President Donald Trump tweeted that he was working on a “new system” to reduce drug prices in the industry, without providing details. Trump also backed a draft bill unveiled by Republicans on Monday to repeal and replace the Obamacare healthcare law, but said the bill was open to negotiation.
LEADERS & LAGGARDS:
This past week’s leaders include Industrial goods, financials and technology. Laggards include utilities and healthcare.
Market moving headlines
JOBLESS CLAIMS FALL: The number of Americans filing for unemployment benefits fell to its lowest level since 1973. Jobless claims have remained under 300,000 for 104 consecutive weeks.
BOND PRICES DROP: Prices for U.S. government bonds dropped Wednesday as the market reacted to news about a potential Fed interest-rate hike in March.
RECORD EXPANSION: The economy has entered its 93rd consecutive month of growth, the third largest expansion in U.S. history, trailing only the tech boom of 1991—2001 and the boom of 1961—1969.
FACTORY GROWTH SURGES: Sales at U.S. factories climbed at the fastest rate in three years in February, with nearly every manufacturing segment reporting gains, thanks mainly to consumers, who are spending steadily.
BITCOIN TOPS GOLD: One bitcoin is now worth more than an ounce of gold. Bitcoin rose to $1,251.32 on Thursday, surpassing gold, which saw its value decline to $1,232.90.
EUROPEAN STOCKS FALL: European stock markets largely closed the week in the red, as investors were cautiously awaiting news on the Fed’s interest-rate hike plans. The European Central Bank will release its next policy update on Thursday.
THIS DAY IN FINANCIAL HISTORY: Reagan’s Millionaire Boom – March 8th, 1985
The IRS reported this day that the number of millionaires in the nation had doubled from 1980 as a result of Reagan’s fiscal policy.
On tap for the rest of the week:
Wednesday: ADP National Employment Report, ADP; labor productivity and costs, U.S. Bureau of Labor Statistics; wholesale inventories, U.S. Census Bureau
Thursday: U.S. import and export price indexes, U.S. Bureau of Labor Statistics
Friday: Monthly jobs and unemployment, U.S. Bureau of Labor Statistics; federal budget report, U.S. Department of the Treasury
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.