Bartlett Market Week
Market Week: January 4, 2010
The Markets
Corks weren't the only things that popped in advance of the new year; a relatively flat week ended with domestic equities getting dumped. However, the major domestic indexes still ended up for the year, and the S&P 500 had its best year since 2003.
Note: Market indexes listed are unmanaged and are not available for direct investment.
Last Week's Headlines
- After several months of increases, October home prices were unchanged from the previous month; only 7 of the 20 cities measured by the S&P/Case-Shiller index saw a monthly gain. Nationwide, the average home price is now roughly where it was in Fall 2003. Though home prices were down 7.3% from October 2008, year-over-year comparisons have continued to improve over recent months, meaning the rate of decline is less dramatic. Several cities have now had 5-7 months of positive returns, while Las Vegas had its 38th consecutive monthly loss (prices there are now down 55.4% from their August 2006 peak).
- Consumer confidence, which gauges attitudes about buying and the short-term future, rose in December; the Conference Board's index now stands at 52.9%. However, the measure of consumers' assessment of their present situation declined and is at a 26-year low.
- Fannie Mae and Freddie Mac benefitted from a Treasury announcement on Christmas Eve that the $200 billion cap on the amount of financial support available to each is being lifted, enabling the government to cover any losses over the next three years. However, Treasury purchases of the two companies' mortgage-backed securities, now at roughly $220 billion, will end as of Thursday as scheduled.
Eye on the Week Ahead
Here's hoping both a new year and a new decade will begin with a better unemployment figure for the second month in a row, though a better number also could renew speculation about whether good economic news might hasten future interest rate hikes. With a data-heavy week in store, traders back at their desks will begin to reposition their portfolios for the new year, and retailers will be assessing the impact of after-Christmas shopping.
Key data releases: Construction spending, manufacturing (1/4); factory orders, pending home sales (1/5); services, FOMC minutes (1/6); unemployment, nonfarm payroll, consumer credit (1/8).
Data source: Includes data provided by Brounes & Associates. 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. Past performance is no guarantee of future results.
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