December 23 – December 27 Week in review

It was another one for the record books for the major market averages last week. In holiday-shortened trading the S&P 500 gained 0.6%, the Dow Jones Industrial Average 0.7% and the Nasdaq Composite 0.9%, reaching the 9000 level for the first time. The S&P MidCap 400, down 0.1%, and the small-cap Russell 2000, down 0.2%, struggled to keep pace.

Despite increasing calls for a pullback last week, positive investor sentiment and a bullish trend remained firmly in place. News items that may have helped support a continued positive market outlook were reports that a Phase One trade deal is close to being signed, China lowering import tariff rates on about 850 commodity products, and the weekly jobless claims report continuing to depict a tight labor market.

Amazon was a big winner last week, rising 4.7%, after the company said it had another record-breaking holiday season. A separate report from MasterCard SpendingPulse indicated that total retail sales, excluding autos, increased 3.4% year over year from November 1st through December 24th while online sales rose 18.8% during the same period.

Not surprisingly the S&P 500 consumer discretionary sector was last week's best-performing sector. The information technology sector followed suit led by the continued strength in Apple, while the defensive oriented utilities sector was the lone sector that finished lower.

Last week also included some key terminations and resignations. Dennis Muilenburg was forced out as Boeing’s CEO and consequently resigned as a Board member. He was replaced as CEO by current Board member David Calhoun. Uber co-founder Travis Kalanick resigned from the Board of Directors effective December 31st and sold his remaining shares in the company so he can focus his finances and energy on his latest venture.

U.S. Treasuries ended the week on a higher note, pushing yields lower across the curve. The 2 year Treasury note yield declined five basis points to 1.58%, and the 10 year yield declined five basis points to 1.87%.

In other markets the U.S. Dollar Index fell 0.7% to 97.03 and WTI crude rose 2.3%, or $1.36, to $61.74 a barrel.

December 30 – January 3 Economic Calendar

  • Monday
  • Durable Goods International Trade in Goods
    8:30 AM ET
  • Retail Inventories [Advance]
    8:30 AM ET
  • Wholesale Inventories [Advance]
    8:30 AM ET
  • Pending Home Sales Index
    10:00 AM ET
  • Dallas Fed Mfg Survey
    10:30 AM ET
  • Tuesday
  • S&P Corelogic Case-Shiller HPI
    9:00 AM ET
  • FHFA House Price Index
    9:00 AM ET
  • Chicago PMI
    9:45 AM ET
  • Consumer Confidence
    10:00 AM ET
  • Wednesday
  • Thursday
  • Jobless Claims
    8:30 AM ET
  • PMI Manufacturing Index
    9:45 AM ET
  • FOMC Minutes
    2:00 PM ET
  • Fed Balance Sheet
    4:30 PM ET
  • Money Supply
    4:30 PM ET
    • Friday
    • Motor Vehicle Sales 
    • ISM Mfg Index
      10:00 AM ET
    • Construction Spending
      10:00 AM ET
    • EIA Natural Gas Report
      10:30 AM ET
    • EIA Petroleum Status Report
      11:00 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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