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Last week most equity markets advanced modestly as the S&P 500, the DJIA, and the NASDAQ were up .06%, .02%, and .16%, respectively. The utility and telecom sectors were the worst performers for the week as investors took profits in the two sectors which have been the best performers YTD. Interest rates rose slightly for the week with the yield on the 10 year U.S. Treasury going from 1.51% to 1.58%. International stocks were mixed, the EAFE declined by .58% but emerging markets rose .08%.

This week is a quiet one on the earnings and the economic front with reports on durable goods , existing home sales, and the second revision to the 2nd quarter GDP number. The second quarter earnings season is basically wrapped up and earnings for the S&P 500 index are expected to fall 2.1% compared to a year ago. This would mark the fourth quarterly earnings drop in a row. Much of the drop is due to the energy sector and lower oil prices, however, 5 of the 10 sectors in the S&P 500 will post declines as companies have struggled to increase sales in the face of slow global growth. The big news this week may be Fed chair Janet Yellen’s speech from the meeting in Jackson Hole as investors hope to get a reading on when the Fed will raise interest rates.

“I learned that courage was not the absence of fear, but the triumph over it.  The brave man is not he who does not feel afraid, but he who conquers that fear.” – Nelson Mandela

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