Clint Sorenson, CFA, CMT
WealthShield
Economic Activity
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The ECRI Weekly Leading index dropped 1.1 this week and is down -1.26% year over year.
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ISM Manufacturing dropped to 52.1 from 52.8 previously.
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ISM Non-manufacturing picked up to 56.9 from 55.5.
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Non-farm payrolls grew by only 75k from 224k in the previous month.
Equity Markets
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Broad markets had a good week. The Dow was the leader, gaining 4.85% (DIA).
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The VIX closed the week down -12.83% at 16.30.
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We mentioned a sellable bounce could materialize. We are in that bounce. Markets are no longer oversold.
Factors
- High Beta and momentum were the top performing factors last week, up 5.13% and 5.11% respectively. Dividend growth was also up 4.98%, showing strong relative strength.
Sectors
- Materials gained over 9% last week. Semiconductors had a good week as well, finishing up 5.98%.
Intermarket
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Lumber gained 0.68% against Gold last week.
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Copper declined -3.06% against Gold last week.
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High Yield bonds (JNK) gained 1.72% against Treasuries (TLT)
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Stocks gained against bonds and gold last week (VT:IEF = 3.23%) (VT:GLD = 1.07%).
Fixed Income, Commodities, Currencies
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The 10 year yield was down 5 basis points to 2.09%
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Precious metals were up 2.73% for the week.
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Industrial metals were down -1.32%.
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Emerging market bonds rallied 1.88% (EMB).
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The Euro gained 1.50% against the dollar and 1.21% against the Yen.
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