- Domestic equity markets continue to move higher
- The Dow puts in its best weekly performance of the year
- Domestic bonds yields reverse and move higher
Events external to the capital markets continue to have negligible impact on the markets’ steady climb upward. All three major equity indices were up over 1% last week with the Dow Jones Industrial Average posting its best gain of the year (up 2%+). The markets’ ignored, for the most part, yet another North Korean missile launch, fallout from hurricane Irma, and politics in Washington.
The yield on the benchmark 10-year Treasury bond reversed and moved higher closing the week with a yield of 2.2%. The Federal Open Market Committee (FOMC) meets Tuesday and Wednesday, it is expected that rates will not be raised. It is expected that they will announce commencement of reducing the size of their balance sheet through bond sales. Janet Yellen will hold a news conference Wednesday afternoon after the close of their meeting.
We continue to receive conflicting inflation information as reflected in last week’s release of the Consumer Price Index which showed its largest gain since the beginning of the year. This data point in addition to relief over the impact of Irma may have placed upward pressure on rates – for the week. Within a larger context we continue to be in an environment of historically low interest rates which shows little signs of reversing anytime soon.
Capital market news flow should continue to be relatively little and market action muted until we commence Q4 earnings season in a few weeks.
Earnings releases continue to be light next week:
Tuesday – Adobe Systems, AutoZone, and Bed Bath & Beyond
Wednesday – General Mills
Friday - CarMax
Indices for the week and YTD are as follows:
S & P 500 up 1.37% for the week; YTD index return is 11.38%
NASDAQ Composite up 1.39% for the week; YTD index return is 19.77%
Dow Jones Industrial Average up 2.16% for the week; YTD index return is 12.56%
Benchmark 10-year Treasury bond yield stands at 2.20% - rising 14 basis points for the week
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Chris McGee heads Caldwell’s investment committee, which draws on a team of experienced in-house professionals and carefully chosen outside analysts to make decisions for client portfolios.
A Chartered Financial Analyst (CFA) and Chartered Alternative Investment Analyst(CAIA), McGee had previously been senior investment adviser and senior vice president at PNC Wealth Management in Sarasota for nearly a decade. Prior to that he was portfolio manager for five years with U.S. Trust (formerly Bank of America) in Sarasota. Before relocating here, he had served as vice president, capital management, for Wachovia Bank in Winston-Salem, North Carolina.
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About Caldwell Trust Company
Caldwell Trust Company is an independent trust company with offices in Venice and Sarasota, Florida. Established in 1993, the firm currently has nearly $1 billion dollars in assets under management for clients throughout the United States. The company offers a full range of fiduciary services to individuals including services as trustee, custodian, investment adviser, financial manager and personal representative. Additionally, Caldwell manages 401(k) and 403(b) qualified retirement plans for employers.
