The Dow reached its seventh consecutive week of gains as it nears 20000. As it stood at the close of last week, the Dow was about 66 points away from that milestone. During a slow week of trading leading up to the holidays, each of the indexes listed here closed on the positive side except for the Global Dow, which lost about 6 points (0.23%). For the first time in several weeks, the yield on 10-year Treasuries narrowed as bond prices kicked up a bit. Continue reading
Monthly Archives: December 2016
The fallout from the increase in the federal funds rate saw bond yields rise, with the yield on 10-year Treasuries hitting a 2-year high. Bond prices tend to fall (and yields rise) when interest rates increase. Lender rates from financial institutions are also expected to climb, pushing consumer loans (e.g., credit card rates) higher. Interest rates on bank deposits may not rise as quickly, however. Equities closed last week with little change in value from the week before. Of the indexes listed here, only the Dow posted a gain, marking the sixth consecutive week of gains for that index. The remaining indexes fell marginally, except for the Russell 2000, which dropped 1.71%. Continue reading
Following a week of tepid movement in the major stock market indexes, equities picked up the pace last week, reaching new record highs. Growth in financial company and bank stocks led the way as both the large-cap Dow and S&P 500 rose over 3.0%. Some analysts suggest that financial stocks could climb further next week if the Fed raises interest rates as anticipated. The small-cap Russell 2000 surged once again last week, jumping almost 6.0% over its prior week’s value. As money pours into equities, long-term bond prices continue to fall. The yield on 10-year Treasuries climbed 8.0 basis points, marking the third consecutive week of rising yields. Continue reading
Robust gains that marked the last few weeks turned to modest declines last week. Gains in energy shares following OPEC’s announcement to cap production weren’t enough to totally offset a regression in small-cap and technology stocks. Both the Russell 2000 and the Nasdaq dropped over 2.0%, while the Dow maintained its value, but little more.
The price of crude oil (WTI) increased by last week’s end, closing at $51.96 per barrel, up from the prior week’s price of $45.96 per barrel. The increase follows OPEC’s agreement to cap petroleum output. Crude oil prices are expected to reach $60 per barrel in the near term. Continue reading