Providing fee-only,
comprehensive investment
and wealth management services

  Market Alert  

Weekly Commentary

ND&S Weekly Market Commentary (3.18.19) – Markets Continue March Higher

Equity markets roared back last week after suffering their worst week of 2019. For the week, the DJIA increased 1.10%, despite pressure on shares of Boeing after the tragic loss of 157 lives in another Boeing 737 Max 8 crash in Ethiopia, prompting countries to respond by grounding the new series of planes around the world. The broader-based S&P 500 jumped 2.95% and the tech-heavy NASDAQ increased 3.81%. International markets also experienced a strong week with the MSCI EAFE increasing 2.81% and emerging markets closing higher by 2.67%. Mixed economic data for the week pushed yields lower on US Treasuries. The yield of the 10yr Treasury closed at 2.59%, down from 2.62% the week prior. Gold prices rebounded to about $1,300oz. while WTI crude pushed above $58 a barrel.

The week began with Monday’s release of both retail sales and food-services which increased 0.2% in January, beating estimates. However, December’s estimate was revised lower showing a 1.6% decline. On Tuesday, the consumer price index (CPI) was released showing an increase of 0.2% in February, matching expectations. Over 12 months, the CPI increased 1.5% giving the Fed plenty of reason to proceed with caution ahead of this week’s FOMC meeting. On Thursday, data was released showing that new home sales in January decreased 6.9% m/m coming in below estimates. On Friday, industrial production ticked up 0.1% in February missing expectations for a 0.4% increase.

The British Parliament undertook a series of votes last week to clear the path toward a “Brexit” deal, which is scheduled to happen on March 29th. Lawmakers rejected the latest agreement potentially setting the stage for a withdrawal without an agreement. The political theater will continue this week with a third vote on the withdrawal agreement, this ahead of the European summit later in the week. Eurozone industrial production rose a stronger-than-expected 1.4%. Manufacturing activity tends to be more sensitive to the economic cycle than services.

Investors will be looking ahead to this week’s meeting of Federal Reserve policy makers. The FOMC is expected to leave rates unchanged when they conclude their two-day meeting on Wednesday. Most expectations are for the Fed to hike rates once in 2019 and once more in 2020, while maintaining their “wait and see” stance adopted in January.

Don’t forget to watch March Madness … a nice diversion from the day-to-day noise of the markets and headline news!

“It’s not how big you are, it’s how big you play.”John Wooden

Latest Financial News

Today's Markets

Market Quotes by TradingView