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In the Markets – Week-Ending May 20

by Peter J. Creedon

Newsletter: In the Markets – Week-Ending May 20
Crystal Brook Advisors
We Make Financial Planning Crystal Clear

United States: Housing start rose 6.6 percent in April to a 1.17 million-unit seasonally adjusted annualized rate.(1) The prices Americans pay for goods and services saw the fastest increase in April in more than three years.(2)

Europe: The European Union will consider extending economic sanctions against Russia for its takeover of Crimea and intervention in eastern Ukraine in 2014.(3)

Asia: EgyptAir flight MS804 crashed with 56 passengers and 10 crew on board. All passengers feared dead.(4) Japanese GDP increased at a 1.7 percent annualized rate in the first quarter.(5)

Monday 05/16

• Oil futures rallied more than 3% after Goldman Sachs said that the market is now in a supply shortfall.(6)
• Tesla Motors Inc. said it would investigate reports that foreign subcontractors at its Silicon Valley auto plant were paid as little as $5 an hour.(7)

Tuesday 05/17

• Led by higher energy prices, headline CPI increased a stronger-than-expected 0.4 percent in April.(8)
• The U.S. benchmarks are traversing the May range against a bullish-leaning technical backdrop.(9)

Wednesday 05/18

• Bayer AG has approached Monsanto Co. about a takeover that would fuse two of the world’s largest suppliers of crop seeds and pesticides, the companies said.(10)
• Goldman Sachs Asset Management is considering the sale of its Australian equities and fixed income businesses.(11)

Thursday 05/19

• U.S. stocks recovered some of the early losses but ended lower on mounting fears that the Federal Reserve’s next interest-rate hike could come as early as June.(12)
• The number of Americans who applied for unemployment benefits in mid-May fell by 16,000 to 278,000.(13)

Friday 05/20

 

Market Close
U.S. stocks closed higher Friday as fears of a June Federal Reserve rate-hike eased following a Thursday selloff. The Dow Jones Industrial Average DJIA, +0.38% rose 65.54 points, or 0.4%, to close at 17,500.94, but was down 0.2% for the week for a fourth straight week of losses. The S&P 500 Index SPX, +0.60% climbed 12.28 points, or 0.6%, to close at 2,052.32, snapping a three-week losing streak for a 0.3% gain. The Nasdaq Composite Index COMP, +1.21% surged 57.03 points, or 1.2%, to finish at 4,769.56, snapping a four-week losing streak to rise 1.1% on a weekly basis.(14)

Contributor: Felipe Vargas-Zúñiga

Sources:
(1) Source: U.S. Department of Commerce, NAHB and Wells Fargo Securities, LLC
(2) Source: MarketWatch
(3) Source: Bloomberg
(4) Source: Telegraph
(5) Source: IHS Global Insight and Wells Fargo Securities, LLC
(6) Source: MarketWatch
(7) Source: MarketWatch
(8) Source: U.S. Department of Labor and Wells Fargo Securities, LLC
(9) Source: MarketWatch
(10) Source: MorningStar
(11) Source: Yahoo Finance
(12) Source: MorningStar
(13) Source: MarketWatch
(14) Source: MarketWatch