Click Here to view today’s Global Momentum Guide WEEKLY SECTOR MOVERS The MSCI EAFE Index climbed 0.89 percent last week. The Dow Jones Industrial Average declined 0.13 percent, the […]
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Equities gave up the Santa Claus rally in the last day of trading. The Dow Jones Industrial Average was the best performing index this week with a 0.14-percent decline. The Nasdaq fell 0.81 percent after slower-than-expected iPhone sales. Apple (AAPL) is by far the largest component in the Nasdaq. The Nasdaq finished the year with a gain of 28.24 percent, however, leading index performance. The Dow Industrials and S&P 500 both rallied more than 20 percent (including dividends), while the Russell 2000 increased 14.40 percent.
Technology led 2017’s sector performance by a wide margin. SPDR Technology (XLK) advanced 33.90 percent on the year. Healthcare, industrials, financials, and consumer discretionary clustered together with returns ranging from 22 to 24 percent. Materials outperformed the market with a gain of 24.01 percent. Utilities and consumer staples saw solid returns of 11.90 and 12.98 percent. iShares U.S. Telecommunications (IYT) fell 11.86 percent and SPDR Energy (XLE) slipped 1.06 percent.
Global X Argentina (ARGT) returned more than 50 percent in 2017, iShares MSCI Hong Kong (EWH) and Turkey (TUR) returned nearly 40 percent. International shares peaked around May for developed markets and September for emerging markets. iShares MSCI Emerging Markets (EEM) climbed 37.00 percent in 2017 and iShares MSCI EAFE (EFA) rose 24.90 percent. Since the start of June, however, SPDR S&P 500 (SPY) has outperformed EFA by 3 percentage points.
The U.S. Dollar Index lost a little more than 1 percent in the final four trading days. The euro cracked $1.20 after flash German inflation for December came in higher than anticipated. The 10-year Treasury yield finished at 2.41 percent. It spent most of the year between 2.2 and 2.5 percent. West Texas Intermediate crude closed above $60, a level it hasn’t sustained since 2015. Gold rallied past $1300 and copper rallied past $3.30 before dipping on the last day of trading.
Economic data was light this week. Consumer confidence cooled in December, according to the Conference Board’s survey. Despite the small dip this month, 2017 was the best year for consumer confidence since 2000. The Atlanta Federal Reserve’s GDP Now Model ended the year with a fourth-quarter growth forecast of 2.8 percent, in line with the economist consensus.
The economy grew at its fastest pace since 2015 this year, with unemployment falling near two-decade lows and initial claims falling to 44-year lows. New home sales accelerated into the close of the year. After spending most of 2016 and 2017 around an average annualized pace of 550,000, sales climbed to 733,000 in November.
The December Issue of the ETF Investor Guide is AVAILABLE NOW! Links to the December Data Files have been posted below. Market Perspective: Stocks Conclude Another Successful Year Investors priced […]
Click Here to view today’s Global Momentum Guide WEEKLY SECTOR MOVERS The MSCI EAFE Index increased 1.23 percent last week, the Russell 2000 Index 0.82 percent, the Dow Jones […]
Traders drove up tax-sensitive shares early in the week and sold as the tax reform bill became law on Friday. Nevertheless, the Russell 2000 and Dow Jones Industrials Average gained 0.82 and 0.42 percent for the week. The S&P 500 and NASDAQ both gained 0.30 percent this week.
Several companies responded to tax cuts with bonus and reinvestment announcements. AT&T (T), Comcast (CMCSA), and Fifth Third (FITB) promised $1,000-dollar bonuses to employees, Wells Fargo (WFC) hiked its minimum wage to $15 an hour, and Boeing (BA) announced a $300 million training and facilities investment. All five companies outperformed the S&P 500 Index this week.
The 10-year yield jumped to its highest level since March and briefly touched 2.5 percent, battering SPDR Utilities (XLU) to a 4.69-percent decline. Floating-rate and high-yield bond funds were insulated from the move. PowerShares Senior Loan Portfolio (BKLN) and iShares High Yield Corporate Bond (BYG) climbed, while treasury and investment-grade bond funds, including corporate bond funds, declined.
Housing data was strong this week. The NAHB Homebuilders confidence survey hit its highest level since 1999. Building permits for November missed expectations, but still rose 3.1 percent from year-ago levels. November housing starts and existing sales both beat forecasts. New home sales crushed expectations of 658,000, hitting an annualized pace of 733,000. iShares U.S. Home Construction (ITB) increased 1.89 percent.
Third-quarter GDP was revised to 3.2 percent, down 0.1 percent. This was the final estimate. The savings rate fell to 2.9 percent in November, the lowest in a decade. Consumer spending rose 0.6 percent. Core inflation was subdued at 0.2 percent, but that was double the forecast. Consumer confidence dipped slightly according to the University of Michigan survey. As has been the case all year, there was a wide gap between Republicans and Independents, and Democrats, in their outlook for the economy. Jobless claims were higher than expected at 245,000, but remain near four-decade lows.
FedEx (FDX) beat earnings expectations this week, sending shares to a new all-time high. Management hiked guidance and believe the tax reform bill will save the company $1.5 billion. It also pushed the Dow Transports to a new record high. iShares Dow Transports (IYT) gained 2.82 percent for the week.
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