Weekly Market Commentary, May 1, 2018

May 1, 2018  | By Robare & Jones

The Markets

After weeks of large swings each way, stocks and bonds barely budged last week. The S&P 500 was flat, and the global MSCI ACWI slipped 0.3 percent. The Bloomberg BarCap Aggregate Bond Index was also unchanged.

 

Data as of 04/27/2018 1-week YTD 1-Year 3-Year 5-Year 10-Year
Standard & Poor's 500 (Domestic Stocks) 0.0% -0.1% 11.8% 8.2% 10.9% 6.7%
Dow Jones Global ex-U.S. -0.5 -0.4 13.3 2.5 3.6 0.2
10-year Treasury Note (Yield Only) 3.0 NA 2.3 1.9 1.7 3.8
Gold (per ounce) -1.1 1.9 4.7 3.3 -2.1 4.0
Bloomberg Commodity Index -0.5 1.4 6.9 -4.1 -7.8 -8.4
DJ Equity All REIT Total Return Index 2.9 -5.9 -1.6 3.9 5.8 6.0

S&P 500, Gold, Bloomberg Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; the DJ Equity All REIT Total Return Index does include reinvested dividends and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods.

Sources: Yahoo! Finance, Barron’s, djindexes.com, London Bullion Market Association.

Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable.

Download Market Data Table

 

Economic News

 

 

Source: CNBC

First-quarter GDP (Gross Domestic Product) growth was moderate relative to 2017 at 2.3 percent but still beat expectations (1.8 percent). Growth was fueled by cheaper commodity prices and reduced corporate taxes.

The first quarter is typically slow as consumer spending growth stagnates after the holiday season. This quarter’s consumer spending growth was the lowest in five years even though jobs are plentiful. Initial jobless claims hit their lowest levels in the last 50 years. The strong jobs environment and recently passed fiscal stimulus give analysts reason to believe the sluggish consumer spending is temporary.

 

Fun Story of the Week

Amazon’s Headquarters Has Over 6,000 Dogs
Some workplaces participate in “Take Your Dog to Work Day” to make the office more enjoyable for employees. But, at Amazon, bring your dog to work day is every day. During a typical workday, approximately 6,000 dogs are present in Amazon headquarters. The dog who pioneered the dog-friendly corporate culture was Rufus, a Welsh corgi, who became such a beloved presence his colleagues used his paw to click the mouse and launch important projects. There’s even a building named after him!

 

Newsletter Sources

 

https://www.barrons.com/articles/BL-INCOMB-2495 (or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/04-30-18_Barrons-Pimcos_Gross-30-Yr_Bond_Bull_Market_Officially_Over-Footnote_1.pdf)

https://www.barrons.com/articles/stocks-could-rise-10-in-2016-according-to-market-strategists-1449899461 (or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/04-30-18_Barrons-Stock_Market_Outlook_2016-Footnote_2.pdf)

https://www.barrons.com/articles/outlook-2015-stick-with-the-bull-1418449329 (or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/04-30-18_Barrons-Outlook_2015-Stick_with_the_Bull-Footnote_3.pdf)

http://money.cnn.com/2015/12/16/news/economy/federal-reserve-interest-rate-hike/index.html

https://finance.yahoo.com/quote/^TNX/history?period1=1448949600&period2=1524891600&interval=1mo&filter=history&frequency=1mo (or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/04-30-18_Yahoo_Finance-CBOE_Interest_Rate-Footnote_5.pdf)

https://www.bloomberg.com/news/articles/2018-04-26/central-banks-take-it-easy-to-give-global-growth-a-second-look

https://www.barrons.com/articles/the-stock-market-thats-never-satisfied-1524875305 (or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/04-30-18_Barrons-The_Stock_Market_Thats_Never_Satisfied-Footnote_7.pdf)

https://www.sciencedaily.com/releases/2018/02/180206090650.htm

https://www.nytimes.com/2018/04/13/science/virosphere-evolution.html

https://www.popsci.com/our-viral-friends

https://www.brainyquote.com/quotes/johannes_kepler_144004?src=t_phenomena

 

https://www.cnbc.com/2018/04/27/first-reading-on-q1-2018-gdp.html