The Week On Wall Street
Stocks ended last week higher as volatility
slowed, completing their best quarter since 2009. A Friday tweet from Secretary
of the Treasury Steven Mnuchin encouraged investors, referring to
“constructive” discussions in the ongoing U.S.-China trade negotiations.1
The S&P 500 gained 1.27% for the week. The Dow Industrials and Nasdaq Composite both exceeded that advance: the Dow rose 1.60%; the Nasdaq, 1.42%.2-4
Foreign shares went the other way. The MSCI EAFE index following international stocks retreated 0.91%.5
2019 Could Be A Big Year For IPOs
One of the ride-share pioneers, Lyft, closed
on its initial public offering (IPO) on Friday, and a glance at the IPO
calendar shows that as many as 226 companies could soon go public, with Uber
and Airbnb possibly among them.6
This IPO wave may be a signal of a market top, or it may point to a comeback for risk appetite, which could be healthy for the overall market.
Should some big-name IPOs stumble, it may deter others from moving ahead, which may influence the market psychology. Conversely, an enthusiastic reception may help support further market advances.
[Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities.]
Good News For The Housing Market
The Fed’s dovish tone has also influenced home
loan rates. Freddie Mac’s latest Primary Mortgage Market Survey shows an
average interest rate of just 4.06% on a 30-year, fixed rate mortgage, compared
with 4.28% a week earlier and 4.95% in December.7
This news is especially significant given the recent pickup in existing home sales. They jumped 11.8% in February, the biggest monthly gain in more than three years.8
[A 30-year, fixed rate mortgage is a conventional home loan meeting the lending requirements of Fannie Mae and Freddie Mac, but it is not a mortgage guaranteed or insured by any government agency. Private mortgage insurance, or PMI, is required for any conventional loan with less than a 20% down payment.]
The federal income tax filing deadline is Monday, April 15. However, residents of Maine and Massachusetts have until Wednesday, April 17 to file their 2018 tax return. April 15 is Patriots’ Day, and April 16 is Emancipation Day.9
The Week Ahead: Key Economic Data
Monday: February retail sales.
Wednesday: ADP’s snapshot of March private sector hiring.
Friday: The Department of Labor’s March jobs report
The Week Ahead: Companies Reporting Earnings
Tuesday: GameStop (GME), Walgreens Boots Alliance (WBA)
Thursday: Constellation Brands (STZ)
|Market Index||Close 3/29||Week||YTD|
|10 Year Note||2.41||-0.03||-0.28|
Sources: wsj.com, treasury.gov - 3/29/19 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. Weekly and year-to-date market index returns are expressed as percentages. 10-year Treasury note yield = projected return on investment, expressed as a percentage, on the U.S. government’s 10-year bond. Weekly and year-to-date 10-year Treasury note yield differences are expressed in basis points.