Presented by Rich Tegge
General market news
- Treasury yields increased marginally, with the 10-year yield opening this Monday morning at 1.58 percent and the 30-year at 2.30 percent. Last week saw minimal volatility in rates compared with the beginning of the month.
- Led by a 2-percent gain in the technology sector, the S&P 500 Index moved up 0.64 percent over the course of the week. The strong showing by the IT segment boosted the technology-oriented Nasdaq Composite Index by 1.41 percent.
- The big economic news last week was the mostly positive housing and manufacturing data for June. Other stories included jobless claims and crude oil inventories coming in just below their May numbers, at 253,000 and –2.3 million barrels, respectively.
| Equity Index | Week-to-Date | Month-to-Date | Year-to-Date | 12-Month |
| S&P 500 | 0.64% | 3.74% | 7.72% | 5.17% |
| Nasdaq Composite | 1.41% | 5.36% | 2.61% | –0.04% |
| DJIA | 0.35% | 3.71% | 8.18% | 6.84% |
| MSCI EAFE | 0.42% | 3.06% | –1.11% | –8.39% |
| MSCI Emerging Markets | 0.47% | 4.77% | 11.60% | –3.77% |
| Russell 2000 | 0.64% | 5.35% | 7.67% | –2.14% |
Source: Bloomberg
| Fixed Income Index | Month-to-Date | Year-to-Date | 12-Month |
| U.S. Broad Market | 0.16% | 5.48% | 5.95% |
| U.S. Treasury | –0.25% | 5.10% | 5.75% |
| U.S. Mortgages | –0.04% | 3.06% | 4.02% |
| Municipal Bond | –0.21% | 4.12% | 6.92% |
Source: Morningstar Direct
WHAT TO LOOK FORWARD TO
This week will be busy on the economic front, with the Federal Open Market Committee meeting taking center stage on Wednesday; the Fed is expected to keep rates unchanged
We will also see data on Consumer Confidence and housing, with releases of New and Pending Home Sales
The first estimate of second-quarter Gross Domestic Product is expected to come in at 2.6 percent.
Rich Tegge is a financial advisor located at Wealth Strategy Group 300 S. Front Street Ste C, Marquette MI 49855. He offers securities and advisory services as an Investment Adviser Representative of Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. He can be reached at 906-228-3696 or at rtegge@wsginvest.com.
Authored by the Investment Research team at Commonwealth Financial Network. © 2016 Commonwealth Financial Network ®
Disclosures: Certain sections of this commentary contain forward-looking statements that are based on our reasonable expectations, estimates, projections, and assumptions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. All indices are unmanaged and are not available for direct investment by the public. Past performance is not indicative of future results. The S&P 500 is based on the average performance of the 500 industrial stocks monitored by Standard & Poor’s. The Nasdaq Composite Index measures the performance of all issues listed in the Nasdaq Stock Market, except for rights, warrants, units, and convertible debentures. The Dow Jones Industrial Average is computed by summing the prices of the stocks of 30 large companies and then dividing that total by an adjusted value, one which has been adjusted over the years to account for the effects of stock splits on the prices of the 30 companies. Dividends are reinvested to reflect the actual performance of the underlying securities. The MSCI EAFE Index is a float-adjusted market capitalization index designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI Emerging Markets Index is a market capitalization-weighted index composed of companies representative of the market structure of 26 emerging market countries in Europe, Latin America, and the Pacific Basin. The Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000® Index. The Barclays Capital Aggregate Bond Index is an unmanaged market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities with maturities of at least one year. The U.S. Treasury Index is based on the auctions of U.S. Treasury bills, or on the U.S. Treasury’s daily yield curve. The Barclays Capital Mortgage-Backed Securities (MBS) Index is an unmanaged market value-weighted index of 15- and 30-year fixed-rate securities backed by mortgage pools of the Government National Mortgage Association (GNMA), Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (FHLMC), and balloon mortgages with fixed-rate coupons. The Barclays Capital Municipal Bond Index includes investment-grade, tax-exempt, and fixed-rate bonds with long-term maturities (greater than 2 years) selected from issues larger than $50 million.