December 2 - December 6 Week in Review

It was a mixed bag for the markets last week. The S&P 500 increased 0.2% and the Russell 2000 rose 0.6% in choppy trading. Meanwhile the Dow Jones Industrial Average, down 0.1%, and the Nasdaq Composite, also down 0.1%, were unable to recoup their losses from earlier in the week.

This week's sector leaders included the S&P 500 energy, consumer staples, health care, and financials sectors. The industrials, consumer discretionary, information technology, and real estate sectors finished lower.

Video 12.09.2019

Last week began with the S&P 500 dropping about 70 points, or 2.3%, in less than two sessions. The two primary catalysts were a weaker-than-expected ISM Manufacturing Index for November and President Trump suggesting that a trade deal with China might be better if it waited until after the 2020 election.

The news might have been good excuses to take some profits after a great month of November (and year), but an opportunistic mindset quickly took hold. Risk sentiment was first supported by reports that trade talks are nearing a deal and was later buoyed by a stronger-than-expected November employment report.

Nonfarm payrolls climbed 266,000, firmly beating expectations and coming in above the upwardly revised readings for October and September. The unemployment rate ticked down to 3.5%, and average hourly earnings increased 0.2%.

On Friday, China added to the upbeat trade mood after it said it began to exempt some U.S. agricultural purchases from tariffs. On a related note, tariffs on steel and aluminum imports from Argentina and Brazil were restored after the countries devalued their currencies, while $2.4 billion of French imports may be taxed up to 100% after France passed a digital tax law that allegedly targets U.S. tech companies.

U.S. Treasuries had some big swings but ultimately finished near their unchanged marks from the prior week. The 2 year yield increased two basis points to 1.63%, and the 10 year yield increased one basis point to 1.84%.

In other markets the U.S. Dollar Index fell 0.6% to 97.68. WTI crude climbed 7.3% to $59.20 a barrel, as OPEC agreed to cut oil production by 500,000 barrels per day during the first quarter of 2020.

December 9 – December 13 Economic Calendar

  • Monday
  •                             TD Ameritrade IMX
    12:30 PM ET

  • Tuesday
  • FOMC Meeting Begins 
  • NFIB Small Business Optimism Index
    6:00 AM ET
  • Productivity and Costs
    8:30 AM ET

  • Redbook
    8:55 AM ET

  • Wednesday
  • MBA Mortgage Applications
    7:00 AM ET
  • CPI
    8:30 AM ET
  • Atlanta Fed Business Inflation Expectations
    10:00 AM ET
  • Quarterly Services Survey
    10:00 AM ET
  • EIA Petroleum Status Report
    10:30 AM ET

  • FOMC Meeting Announcement
    2:00 PM ET
  • Treasury Budget
    2:00 PM ET
  • Fed Chair Press Conference
    2:30 PM ET
  • Thursday
  • Jobless Claims
    8:30 AM ET
  • PPI-FD
    8:30 AM ET
  • EIA Natural Gas Report
    10:30 AM ET
  • Fed Balance Sheet
    4:30 PM ET
  • Money Supply
    4:30 PM ET

    • Friday
    • Retail Sales
      8:30 AM ET
    • Import and Export Prices
      8:30 AM ET
    • Business Inventories
      10:00 AM ET
    •                      Baker-Hughes Rig Count
      1:00 PM ET





PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. This commentary is a matter of opinion and is for informational purposes only. It is not intended as investment advice and does not address or account for individual investor circumstances. Investment decisions should always be made based on the client's specific financial needs, goals and objectives, time horizon and risk tolerance. The statements contained herein are based solely upon the opinions of Telemus Capital, LLC. All opinions and views constitute our judgments as of the date of writing and are subject to change at any time without notice. Information was obtained from third party sources, which we believe to be reliable, but not guaranteed.

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