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Last Week Review: The S&P 500 advanced by 1.6% this week and is up more than 6% from its February lows. This strong performance wasn't particularly surprising as the market has been volatile to start 2016. Consider this: of the 38 trading days on record this year, 27 have registered intraday moves of more than 1.5%. That means that 71% of all trading days this year have seen intraday moves of 1.5%. To put this into perspective, 2014 only saw 24 days with intraday swings of more than 1.5%, that's only 10% of the time. Weekly performance is likely to remain volatile, reflecting the balance of risks and opportunities in the current environment and the ebb and flow in investor sentiment that accompanies incoming economic data. This highlights the opportunity to upgrade quality within large-cap equity investments, in our opinion. Companies with sustainable competitive advantages, solid financial positions, and the capacity for above-average dividend growth are particularly well positioned within the large-cap asset class, in our view.
Last Week Review: The S&P 500 advanced by 1.6% this week and is up more than 6% from its February lows. This strong performance wasn't particularly surprising as the market has been volatile to start 2016. Consider this: of the 38 trading days on record this year, 27 have registered intraday moves of more than 1.5%. That means that 71% of all trading days this year have seen intraday moves of 1.5%. To put this into perspective, 2014 only saw 24 days with intraday swings of more than 1.5%, that's only 10% of the time. Weekly performance is likely to remain volatile, reflecting the balance of risks and opportunities in the current environment and the ebb and flow in investor sentiment that accompanies incoming economic data. This highlights the opportunity to upgrade quality within large-cap equity investments, in our opinion. Companies with sustainable competitive advantages, solid financial positions, and the capacity for above-average dividend growth are particularly well positioned within the large-cap asset class, in our view.
Major indexes were higher on the week, with all
S&P sectors except utilities posting gains. The Dow Jones Industrial
Average gained 248 points to end the week at 16,640, up 1.5%. The S&P 500
gained 30 points to end at 1,948. Bond prices were marginally higher on the
week, with the U.S. 10-year Treasury bond yield up 0.01% to end at 1.76%.
How the market finished last week, the S&P 500 up
1.6%, the Nasdaq up 1.9%, and the Dow up 1.5%.
This
Week: Next week's economic data will feature PMI
reports, vehicle sales, and February's jobs report, the latter of which will be
closely watched as the Federal Reserve will use it as a key data point to
determine the direction of future monetary policy.
A
rare calm week could be but a temporary lull in what remains a challenging
economic and investing climate.
As
you can see below, there were more negative changes than positive changes, and
there are some indicators that are pointing to another pickup in volatility.
Next week is also a very big week for economic reports, which can also cause
market volatility. The consensus of the indicators for next week point to more Volatile
than this past week.
Economic
Calendar: ISM Mfg Index (3/1), EIA Petroleum Status Report (3/2) International
Trade (3/4), Employment Report (3/4)
Some of the major earnings announcements on deck: AMBA,
MIDD, ROST, COST.
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