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In the Markets – Week-Ending April 8

by Peter J. Creedon

Newsletter: In the Markets – Week-Ending April 8
Crystal Brook Advisors
We Make Financial Planning Crystal Clear™

United States: Total job openings fell slightly in February, but the pickup in total hiring to a new cycle high is a clear positive signal for the U.S. labor market. Meanwhile, the mix of turnover continues to improve.(1)

Europe: European regulators pressed the region’s banks for details of their offshore business dealings, as two senior bankers resigned over allegations arising from the Panama document leak.

Asia: Yen surge turns 105 per dollar into next intervention flashpoint. A bipartisan parliament committee identified at least $4.2 billion of unauthorized or unverified transactions at 1Malaysia Development Bhd.(2)

Monday 04/04

• With prospects for only scant gains in first quarter equipment spending, today’s report on the factory sector indicates an increased risk that equipment outlays will decline again in the first quarter .(3)
• Oil futures ended lower, dragged down by skepticism that a global agreement to freeze output levels would be reached later this month.(4)

Tuesday 04/05

• Export growth appears to have been weaker than import growth at the beginning of the year. Consequently, net exports likely exerted a significant drag on overall GDP growth in Q1.(5)
• After three straight months of signaling a slower pace of expansion, the ISM non-manufacturing index improved to 54.5 in March. The prices component jumped 3.6 points but still remains below 50.(6)

Wednesday 04/06

• Even as nominal sales and profits growth among corporations has trended lower in recent quarters, interest coverage ratios have generally remained at manageable levels despite edging downward.(7)
• The U.S. oil benchmark scored its biggest one-day jump in three weeks after weekly government data showed a large and unexpected fall in U.S. crude inventories and an increase in demand by refineries.(8)

Thursday 04/07

• Gold prices finished sharply higher Thursday, coinciding with a meltdown for the U.S. dollar against the yen, and fresh signals that the Federal Reserve is taking a cautious approach to future interest-rate hikes.(9)
• Consumer credit increased for the 54th consecutive month on the back of gains in both revolving and non-revolving credit. Moving forward, the pace of gains in consumer credit should ease further.(10)

Friday 04/08

• Gold ends higher, rings up biggest weekly gain in 3 weeks.(11)
• Oil posts 8% weekly gain on signs of fading U.S. output.(12)


Market Close
U.S. stocks finished Friday’s session slightly higher as a slump in the consumer-discretionary sector shaved energy gains resulting from a rally in oil. The Dow Jones Industrial Average DJIA, +0.20% closed up 35.00 points, or 0.2%, at 17,576.96, after being up 153 points earlier in the session. The S&P 500 Index SPX, +0.28% gained 4.77 points, or 0.2%, to close at 2,046.68. Just before the closing bell, the Nasdaq Composite Index COMP, +0.05% swung to a slight gain of 2.32 points to close at 4,850.69.(13)

Contributor: Felipe Vargas-Zúñiga

(1) Source: U.S. Department of Labor and Wells Fargo Securities, LLC
(2) Source: Bloomberg
(3) Source: U.S. Dept. of Commerce, U.S. Dept. of Labor and Wells Fargo Securities, LLC
(4) Source: Morningstar
(5) Source: U.S. Department of Commerce and Wells Fargo Securities, LLC
(6) Source: U.S. Department of Labor, Institute for Supply Management and Wells Fargo Securities, LLC
(7) Source: U.S. Department of Commerce and Wells Fargo Securities, LLC
(8) Source: MarketWatch
(9) Source: MarketWatch
(10) Source: Federal Reserve Board, U.S. Department of Commerce and Wells Fargo Securities, LLC
(11) Source: Marketwatch
(12) Source: Marketwatch
(13) Source: Marketwatch

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