Market Week: April 10, 2023
Presented by William Prentice, AWMA®, CFP®, CIMA®
Key Dates/Data Releases
4/12: Consumer Price Index, Treasury statement
4/13: Producer Price Index
4/14: Industrial production, retail sales, import and export prices
THE MARKETS (as of market close April 7, 2023)
Last week, most financial markets closed for Good Friday, although bond markets were open until noon. Stocks ended last week with mixed results, with the Dow and the Global Dow adding value, while the Russell 2000, the Nasdaq, and the S&P 500 fell. Wall Street began the week with large caps advancing. However, stocks couldn't recover from midweek downturns, despite a strong finish last Thursday. For the most part, investors were apparently cautious ahead of the jobs report, which came out last Friday. Economic news was mixed, with a rise in the services sector offset by
another tumble in manufacturing. The number of jobless claims rose, while the number of job openings declined to their lowest level in nearly two years. Bond prices increased, driving yields lower. Crude oil prices advanced for the third straight week and are now back to where they began the year. Gold prices rose past $2,000.00 per ounce after advancing for the second week in a row. The dollar slipped lower.
Last Monday was a mixed bag for stocks, with the Dow (1.0%), the Global Dow (0.6%), and the S&P 500 (0.4%) advancing, while the Nasdaq (-0.3%) and the Russell 2000 (0.0%) were unable to gain ground. Bond prices jumped higher, dragging yields lower, with 10-year Treasury yields falling to 3.43%. Crude oil prices surged, climbing 6.4% to
hit $80.48 per barrel after OPEC+ announced an unexpected cut in production starting in May. The dollar dipped minimally, while gold prices rose to over $2,000.00 per ounce. The rise in oil prices helped drive the energy sector up by nearly 5.0%. Health care, materials, consumer staples, and communication services also advanced. Consumer discretionary, real estate, and utilities slid the furthest. Information technology lost less than 0.1%.
Stocks and bond yields tumbled lower last Tuesday, while the dollar fell to a two-month low. Crude oil prices were flat. Gold prices rose nearly 2.0%. The JOLTS report (see below) showed job openings fell to their lowest level in almost two years, an indication that employment and the economy may be slowing. Each of the benchmark indexes listed here lost value, with the small caps of the Russell 2000 losing 1.8%. The Nasdaq, the Dow, and the S&P 500 each declined nearly 0.6%. The Global Dow dipped 0.1%. Ten-year Treasury yields ended the session at 3.33% after falling 9.3 basis points.
Last Wednesday saw only the Dow advance in value among the benchmark indexes listed here. The remaining indexes fell for the third straight session, with the Nasdaq slipping 1.1%, followed by the Russell 2000 (-1.0%), the S&P 500 (-0.8%), and the Global Dow (-0.4%). Ten-year Treasury yields also fell for the third consecutive day, declining 5.0 basis points to 3.28%, the lowest rate so far this year. Crude oil prices dipped lower to $80.36 per barrel. The dollar advanced, while gold prices fell marginally.
Stocks rebounded last Thursday, as investors likely took advantage of some perceived value following losses during the previous two sessions. The Nasdaq gained 0.8%, followed by the S&P 500 (0.4%) and the Russell 2000 (0.1%). The Dow and the Global Dow ended the day flat. Ten-year Treasury yields also ended the session about where they started, closing the day at 3.28%. Crude oil prices slipped to $80.48 per barrel. The dollar eked out a minimal gain, while gold prices dipped 0.7% but remained above $2,000.00 per ounce.
EYE ON THE WEEK AHEAD
Inflation data for March is out this week with the release of several important reports. The Consumer Price Index, an inflation indicator that is familiar to most, is released this Wednesday. The CPI rose 0.4% in February, while core prices increased 0.5%. The Producer Price Index for March is also out this week. Prices at the producer level actually dipped
0.1% in February, although producer prices remain up 4.6% from a year earlier. The March figures on import and export prices are scheduled for release on Friday. Import prices fell 0.1% in February, while export prices rose 0.2%.
Data sources: Economic: Based on data from U.S. Bureau of Labor Statistics (unemployment, inflation); U.S. Department of Commerce (GDP, corporate profits, retail sales, housing); S&P/Case-Shiller 20-City Composite Index (home prices); Institute for Supply Management (manufacturing/services). Performance: Based on data reported in WSJ Market Data Center (indexes); U.S. Treasury (Treasury yields); U.S. Energy Information Administration/Bloomberg.com Market Data (oil spot price, WTI, Cushing, OK); www.goldprice.org (spot gold/silver); Oanda/FX Street (currency exchange rates). News items are based on reports from multiple commonly available international news sources (i.e., wire services) and are independently verified when necessary with secondary sources such as government agencies, corporate press releases, or trade organizations. All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Forecasts are based on current conditions, subject to change, and may not come to pass. U.S. Treasury securities are guaranteed by the federal government as to the timely payment of principal and interest. The principal value of Treasury securities and other bonds fluctuates with market conditions. Bonds are subject to inflation, interest-rate, and credit risks. As interest rates rise, bond prices typically fall. A bond sold or redeemed prior to maturity may be subject to loss. Past performance is no guarantee of future results. All investing involves risk, including the potential loss of principal, and there can be no guarantee that any investing strategy will be successful.
The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 largest, publicly traded companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange. The Russell 2000 is a market-cap weighted index composed of 2,000 U.S. small-cap common stocks. The Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide. The U.S. Dollar Index is a geometrically weighted index of the value of the U.S. dollar relative to six foreign currencies. Market indexes listed are unmanaged and are not available for direct investment.
Prepared by Broadridge Advisor Solutions. © 2023 Broadridge Financial Services, Inc.