Weekly Market Updates

Stay informed of market news over the last month, and what changes may be on the horizon.

GWA presents the most recent market update from Commonwealth Financial Network

Weekly Market Update

April 16, 2018

Presented by Kris Maksimovich

General market news

  • After spending the better part of the past two weeks below 2.80 percent, the 10-year Treasury bounced back and opened Monday at 2.86 percent. The 30-year opened at 3.06 percent, and the 2-year was at 2.38 percent. The yield curve hasn’t been this flat since 2007.
  • S. markets were up across the board last week, as protectionism concerns waned and the Federal Open Market Committee expressed positive economic sentiment in its meeting minutes. A number of events supported free trade, including Chinese President Xi Jinping’s speech at the Boao Forum, during which he vowed to further open his country’s markets. In addition, there was news out of the White House about a possible NAFTA deal. President Trump also expressed interest in potentially rejoining the Trans-Pacific Partnership, an 11-nation free trade deal.
  • The week was not without volatility, however, as we waited to see if and when the U.S., U.K., and France would strike at supposed chemical weapons facilities in Syria. Prices for West Texas Intermediate rose more than 8 percent on the news. Unsurprisingly, the energy sector posted the largest gain on the week. Technology followed, as investors reacted favorably to Mark Zuckerberg’s testimony before Congress. The bond proxies in the utilities, REIT, and telecom sectors were among the worst performers.
  • Last week was relatively quiet in terms of economic news. On Tuesday, the Producer Price Index came in higher than expected, with a 0.3-percent monthly gain. This put year-over-year growth at 3 percent.
  • On Wednesday, the Consumer Price Index showed a 2.4-percent year-over-year increase, which was a step up from last month’s reading of 2.2 percent. Given the healthy employment market, the Fed will keep a close eye on inflation as it determines when to hike rates again this year.
  • Finally, on Friday, the University of Michigan consumer sentiment survey came in below expectations, declining to 97.8 in April. This is down from March’s level of 101.4, but it is still a very strong reading historically.
Equity Index Week-to-Date Month-to-Date Year-to-Date 12-Month
S&P 500 2.04% 0.66% -0.10% 16.32%
Nasdaq Composite 2.77% 0.64% 3.24% 23.73%
DJIA 1.80% 1.12% -0.87% 21.90%
MSCI EAFE 1.49% 2.17% 0.56% 18.32%
MSCI Emerging Markets 0.74% 0.14% 1.47% 24.70%
Russell 2000 2.41% 1.34% 1.26% 16.69%

Source: Bloomberg

Fixed Income Index Month-to-Date Year-to-Date 12-Month
U.S. Broad Market –0.23% –1.69% 0.04%
U.S. Treasury –0.41% –1.58% –0.91%
U.S. Mortgages –0.17% –1.37% –0.19%
Municipal Bond 0.16% –0.95% 2.02%

Source: Morningstar Direct 

What to look forward to

This will be a busy week for economic news. Reports will give us a look at consumer spending, the housing market, and industrial production and manufacturing. In other words, we’ll get an update on the entire economy.

The retail sales report, released on Monday, beat expectations, showing a gain of 0.6 percent in March. Economists had expected sales to grow by 0.4 percent. A rebound in auto sales and another increase in Internet sales helped push up the result. Core retail sales, which exclude autos, also improved over February, growing by 0.3 percent in March. These numbers are healthy and show that consumers are continuing to spend.

Also on Monday, the National Association of Home Builders survey dropped from a strong 70 to 69, which is still healthy and positive for the industry. Housing starts, released on Tuesday, are expected to rise from 1.24 million in February to 1.27 million in March. After volatility in both multifamily and single-family sectors in recent months, this would be a positive development. Overall, demand remains strong, although supply is constrained, especially for existing homes.

Industrial production growth, also released on Tuesday, is expected to moderate from an unsustainable 0.9 percent in February to a still healthy 0.3 percent in March. This variance includes substantial weather-driven swings in utility production. Manufacturing output, which is a better economic indicator, is also expected to decline, largely driven by oil and gas production, from 1.3-percent growth in February to a still healthy 0.4 percent for March. There may be some downside risk here, based on a decline in hours worked and February’s strong result.

Disclosures: Certain sections of this commentary contain forward-looking statements that are based on our reasonable expectations, estimates, projections, and assumptions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. All indices are unmanaged and are not available for direct investment by the public. Past performance is not indicative of future results. The S&P 500 is based on the average performance of the 500 industrial stocks monitored by Standard & Poor’s. The Nasdaq Composite Index measures the performance of all issues listed in the Nasdaq Stock Market, except for rights, warrants, units, and convertible debentures. The Dow Jones Industrial Average is computed by summing the prices of the stocks of 30 large companies and then dividing that total by an adjusted value, one which has been adjusted over the years to account for the effects of stock splits on the prices of the 30 companies. Dividends are reinvested to reflect the actual performance of the underlying securities. The MSCI EAFE Index is a float-adjusted market capitalization index designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI Emerging Markets Index is a market capitalization-weighted index composed of companies representative of the market structure of 26 emerging market countries in Europe, Latin America, and the Pacific Basin. The Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000® Index. The Bloomberg Barclays US Aggregate Bond Index is an unmanaged market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities with maturities of at least one year. The U.S. Treasury Index is based on the auctions of U.S. Treasury bills, or on the U.S. Treasury’s daily yield curve. The Bloomberg Barclays US Mortgage Backed Securities (MBS) Index is an unmanaged market value-weighted index of 15- and 30-year fixed-rate securities backed by mortgage pools of the Government National Mortgage Association (GNMA), Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (FHLMC), and balloon mortgages with fixed-rate coupons. The Bloomberg Barclays US Municipal Index includes investment-grade, tax-exempt, and fixed-rate bonds with long-term maturities (greater than 2 years) selected from issues larger than $50 million.

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Kris Maksimovich is a financial advisor located at Global Wealth Advisors 18170 Dallas Parkway, Suite 103, Dallas, TX 75287. He offers securities and advisory services as an Investment Adviser Representative of Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. He can be reached at (972) 931-3818 or at info@gwadvisors.net.

Authored by the Investment Research team at Commonwealth Financial Network.

© 2018 Commonwealth Financial Network®

 

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GWA presents the most recent market update from Commonwealth Financial Network

Weekly Market Update

April 9, 2018

Presented by Kris Maksimovich

General market news

  • Rates were slightly higher last week. The yield on the 10-year Treasury broke 2.80 percent to the upside, though it was back below that level on Friday and opened Monday at 2.79 percent. The 30-year spent much of last week below 3 percent, though it opened Monday at 3.03 percent. The 2-year, meanwhile, was as high as 2.30 percent last week and opened this week at 2.28 percent. The difference between the 2-year and 10-year stands at about 50 basis points (0.50 percent), whereas the difference between the 2-year and the 30-year is 74 basis points (0.74 percent).
  • All three major U.S. indices were down last week as rhetoric between the U.S. and China heated up. The Nasdaq Composite Index posted the largest decline of 2.08 percent. The tech-heavy index suffered in the wake of President Trump’s continued comments on potential legal action he could take against Amazon (AMZN). Volatility also increased following a disappointing U.S. employment report and increasing global lending costs.
  • At the end of the week, markets digested news that the U.S. would potentially add another $100 billion in tariffs on Chinese products. This was a different story than the previous week’s news that the U.S. and China were discussing trade deals. In his March Senate Finance Committee testimony, U.S. Trade Representative Robert Lighthizer stated that he “anticipates about 60 days worth of public comment on a soon-to-be published tariff list.” As a result, it could be some time before the volatility surrounding fears of a trade war subsides.
  • Turning to economic news, the Institute for Supply Management (ISM) Manufacturing index was released last week. Although the index came in below expectations at 59.3, the still-strong reading indicates that the economy is primed to expand at a healthy pace.
  • The ISM Nonmanufacturing index came in at 58.8, close to the consensus of 59. This result also indicates that the economy is growing at a healthy pace. We do see some signs of capacity stress, however, with supplier deliveries taking longer and prices rising.
  • Finally, on Friday, we saw a relatively weak March employment report. Only 103,000 jobs were created, against expectations for 175,000. This follows the strong February report, however, and brings the first-quarter average to 202,000 jobs created per month, which is slightly below the fourth-quarter average of 221,000. The unemployment rate remained at 4.1 percent for the sixth straight month, while the participation rate declined by 0.1 percent to 62.9 percent. Average hourly earnings growth came in at consensus with 0.3-percent growth month-over-month and 2.7-percent growth year-over-year. Overall, this report will likely tamp down pressure on the Federal Reserve (Fed) to increase its planned pace of rate hikes.
Equity Index Week-to-Date Month-to-Date Year-to-Date 12-Month
S&P 500 –1.35% –1.35% –2.10% 12.63%
Nasdaq Composite –2.08% –2.08% 0.46% 18.88%
DJIA –0.67% –0.67% –2.62% 18.53%
MSCI EAFE 0.50% 0.50% –0.92% 16.64%
MSCI Emerging Markets –0.73% –0.73% 0.64% 23.77%
Russell 2000 –1.04% –1.04% –1.12% 12.36%

Source: Bloomberg

Fixed Income Index Month-to-Date Year-to-Date 12-Month
U.S. Broad Market –0.05% –1.51% 0.98%
U.S. Treasury –0.15% –1.33% 0.15%
U.S. Mortgages –0.01% –1.20% 0.61%
Municipal Bond 0.00% –1.11% 2.22%

Source: Morningstar Direct 

What to look forward to

Inflation will be the focus this week, with producer and consumer prices due in the first half.

On Tuesday, the headline producer prices report is expected to show a 0.1-percent increase for March, down from a 0.2-percent increase in February due to lower energy prices. On an annual basis, the change is expected to move from 2.8 percent to 2.9 percent. The core index, which excludes food and energy and so is thus a better economic indicator, is expected to increase by 0.2 percent for March, as it did in February. The annual figure also is expected to increase from 2.5 percent to 2.6 percent. This would be a six-year high in producer prices, reflecting the dollar’s depreciation and the consequent rise in import prices. These results are well above the Fed’s target range and would boost the chances for a rate hike in June.

On Wednesday, we’ll get a look at consumer prices. The headline index is expected to drop from 0.2-percent growth in February to flat in March—again due to a decrease in gas prices. The annual figure, though, is expected to tick up from 2.2 percent to 2.3 percent, as weak March data from 2017 drops out of the calculation. Core inflation, which excludes food and energy, is expected to remain stable at a 0.2-percent growth rate for March. But the annual figure is expected to rise to 2.1 percent from 1.8 percent. As with producer prices, these figures are above the Fed’s target and would support a rate increase if they come in as expected.

Speaking of the Fed, on Wednesday the central bank will release the notes from the March meeting of its Open Market Committee. The notes will provide more details on the Fed’s decision to raise rates last month, as well as what would drive more hikes this year. As the Fed voters are split on how many increases this year would be appropriate, markets will examine the minutes closely in the context of the inflation data for suggestions that rate increases might come faster than expected.

Finally, on Friday, the University of Michigan will release its consumer confidence survey. Sentiment is expected to tick down from a very high 101.4 in March to a still high 101.0 in April. There is probably some downside risk here, as recent turmoil in the financial markets may have shaken confidence, but the strong job market and low gas prices should keep confidence elevated. High confidence would be constructive for the economy going forward.

Disclosures: Certain sections of this commentary contain forward-looking statements that are based on our reasonable expectations, estimates, projections, and assumptions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. All indices are unmanaged and are not available for direct investment by the public. Past performance is not indicative of future results. The S&P 500 is based on the average performance of the 500 industrial stocks monitored by Standard & Poor’s. The Nasdaq Composite Index measures the performance of all issues listed in the Nasdaq Stock Market, except for rights, warrants, units, and convertible debentures. The Dow Jones Industrial Average is computed by summing the prices of the stocks of 30 large companies and then dividing that total by an adjusted value, one which has been adjusted over the years to account for the effects of stock splits on the prices of the 30 companies. Dividends are reinvested to reflect the actual performance of the underlying securities. The MSCI EAFE Index is a float-adjusted market capitalization index designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI Emerging Markets Index is a market capitalization-weighted index composed of companies representative of the market structure of 26 emerging market countries in Europe, Latin America, and the Pacific Basin. The Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000® Index. The Bloomberg Barclays US Aggregate Bond Index is an unmanaged market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities with maturities of at least one year. The U.S. Treasury Index is based on the auctions of U.S. Treasury bills, or on the U.S. Treasury’s daily yield curve. The Bloomberg Barclays US Mortgage Backed Securities (MBS) Index is an unmanaged market value-weighted index of 15- and 30-year fixed-rate securities backed by mortgage pools of the Government National Mortgage Association (GNMA), Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (FHLMC), and balloon mortgages with fixed-rate coupons. The Bloomberg Barclays US Municipal Index includes investment-grade, tax-exempt, and fixed-rate bonds with long-term maturities (greater than 2 years) selected from issues larger than $50 million.

###

Kris Maksimovich is a financial advisor located at Global Wealth Advisors 18170 Dallas Parkway, Suite 103, Dallas, TX 75287. He offers securities and advisory services as an Investment Adviser Representative of Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. He can be reached at (972) 931-3818 or at info@gwadvisors.net.

Authored by the Investment Research team at Commonwealth Financial Network.

© 2018 Commonwealth Financial Network®

 

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GWA presents the Commonwealth Financial Monthly Market Update

Weekly Market Update

April 2, 2018

Presented by Kris Maksimovich 

General market news

  • The yield on the 10-year Treasury broke the 2.80-percent level last Wednesday, though it was back down to 2.75 percent early Monday morning. The 30-year broke 3 percent on Friday and opened at 2.98 percent on Monday. The yield curve is the flattest it has been since October 2007. Though we are likely to see continued volatility, the curve is expected to continue to flatten as the Federal Reserve raises shorter-term rates this year.
  • The three major U.S. markets recouped some their losses from the past two weeks. Fears of a trade war waned as the Wall Street Journal and other media outlets reported that the U.S. and China had been quietly discussing trade issues. The focus of the talks reportedly included ease of Chinese companies accessing U.S. markets, an increase in the number of U.S. semiconductors purchased, and the ability for foreign financial groups to take majority stakes in securities companies. U.S. Trade Representative Robert Lighthizer stated that the tariffs would focus on tech goods, which helped explain the continued lag of the heavily tech-weighted Nasdaq Composite Index. Further affecting the performance of the Nasdaq were comments from President Trump, who stated that Amazon pays little or no state and local taxes and that he’s tired of the USPS operating as the firm’s “delivery boy.”
  • Last week saw a number of important economic data releases. On Tuesday, the Conference Board Consumer Confidence Index declined slightly from its 18-year high in February. Confidence remains well above average, however, and is not a current concern.
  • On Wednesday, the final estimate of fourth-quarter gross domestic product growth was revised upward to 2.9 percent annualized from 2.7 percent. Much of this was driven by strong consumption growth that, at 4 percent, beat expectations.
  • On Thursday, February’s personal income and spending data came in as expected. Both measures grew modestly, with 0.4-percent month-over-month growth in income. Also on Thursday, the University of Michigan consumer sentiment survey declined slightly to 101.4 from 102. As was the case with the Conference Board’s index, this measure of consumer confidence still sits near multiyear highs.
Equity Index Week-to-Date Month-to-Date Year-to-Date 12-Month
S&P 500 2.05% 0.00% –0.76% 13.73%
Nasdaq Composite 1.03% 0.00% 2.59% 20.71%
DJIA 2.42% 0.00% –1.96% 19.02%
MSCI EAFE 1.08% 0.00% –1.41% 14.77%
MSCI Emerging Markets –0.01% 0.00% 1.47% 23.94%
Russell 2000 1.35% 0.00% –0.08% 12.08%

Source: Bloomberg

Fixed Income Index Month-to-Date Year-to-Date 12-Month
U.S. Broad Market 0.64% –1.46% 1.34%
U.S. Treasury 0.94% –1.18% 0.54%
U.S. Mortgages 0.64% –1.19% 1.02%
Municipal Bond 0.37% –1.11% 2.61%

Source: Morningstar Direct 

What to look forward to

This will be a busy week for economic news, and it starts with the major business surveys.

On Monday, the Institute for Supply Management (ISM) Manufacturing survey is expected to drop slightly, from an extremely strong 60.8 in February to 60.0 for March. The February result was the highest in almost 14 years, and a small pullback would still leave the survey at a very high level. This is a diffusion index, where numbers above 50 indicate expansion, so anything close to the expected result would show strong expansion.

On Wednesday, the ISM Nonmanufacturing survey is also expected to pull back slightly. The February result of 59.5 is expected to tick down to 59.0, which is not quite as good as the Manufacturing survey, but still indicative of strong growth. Between the two results, business looks to continue as a positive force for the economy.

On Thursday, the international trade report is expected to show a small worsening of the trade deficit, from $56.6 billion in January to $56.8 billion in February. Exports have rebounded while import growth has moderated, but one-time factors are likely to pull down the final result. Trade is anticipated to be a drag on growth in the first quarter, but the numbers do seem to be improving overall.

Finally, on Friday, we’ll see the employment report. It is expected to show that job growth moderated significantly, down from 313,000 in February to 189,000 in March. The February number was much higher than expected, so even with a pullback, the employment market would be in good shape. There may be some upside potential here, as the flu epidemic may have slowed job growth in February. The unemployment rate is expected to drop from 4.1 percent to 4 percent, while wage growth is expected to rise by 0.2 percent on a monthly basis and 2.8 percent on an annual basis. Overall, if the numbers come in as expected, this would be a healthy report.

Disclosures: Certain sections of this commentary contain forward-looking statements that are based on our reasonable expectations, estimates, projections, and assumptions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. All indices are unmanaged and are not available for direct investment by the public. Past performance is not indicative of future results. The S&P 500 is based on the average performance of the 500 industrial stocks monitored by Standard & Poor’s. The Nasdaq Composite Index measures the performance of all issues listed in the Nasdaq Stock Market, except for rights, warrants, units, and convertible debentures. The Dow Jones Industrial Average is computed by summing the prices of the stocks of 30 large companies and then dividing that total by an adjusted value, one which has been adjusted over the years to account for the effects of stock splits on the prices of the 30 companies. Dividends are reinvested to reflect the actual performance of the underlying securities. The MSCI EAFE Index is a float-adjusted market capitalization index designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI Emerging Markets Index is a market capitalization-weighted index composed of companies representative of the market structure of 26 emerging market countries in Europe, Latin America, and the Pacific Basin. The Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000® Index. The Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities with maturities of at least one year. The U.S. Treasury Index is based on the auctions of U.S. Treasury bills, or on the U.S. Treasury’s daily yield curve. The Bloomberg Barclays U.S. Mortgage Backed Securities (MBS) Index is an unmanaged market value-weighted index of 15- and 30-year fixed-rate securities backed by mortgage pools of the Government National Mortgage Association (GNMA), Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (FHLMC), and balloon mortgages with fixed-rate coupons. The Bloomberg Barclays U.S. Municipal Index includes investment-grade, tax-exempt, and fixed-rate bonds with long-term maturities (greater than 2 years) selected from issues larger than $50 million.

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Kris Maksimovich is a financial advisor located at Global Wealth Advisors 18170 Dallas Parkway, Suite 103, Dallas, TX 75287. He offers securities and advisory services as an Investment Adviser Representative of Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. He can be reached at (972) 931-3818 or at info@gwadvisors.net.

Authored by the Investment Research team at Commonwealth Financial Network.

© 2018 Commonwealth Financial Network®

 

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Market Update and Financial Market News

Weekly Market Update

March 26, 2018

Presented by Kris Maksimovich                          

General market news

  • The 10-year Treasury opened at 2.81 percent this week, slightly lower than last Monday’s open. In fact, this yield is at the low end of the range the 10-year has been trading in for the past month. The 30-year also opened lower, at 3.07 percent.
  • The markets were unable to find their footing last week, as all three major U.S. indices declined by more than 5.5 percent. News that Cambridge Analytica, a political data firm, accessed the private information of more than 50 million Facebook users led to a sharp sell-off in Facebook stock. The stock’s significant weighting in the S&P 500 Index (it’s the fourth largest) and broad social media data concerns weighed heavily on the technology sector.
  • Tariffs continued to grab headlines last week, as President Trump announced between $50 and $60 billion in trade tariffs on China. China’s response was swift, as the country announced its own tariffs of approximately $3 billion on U.S. steel, aluminum, pork, fruit, and wine. The actions led to concerns of a full-fledged trade war between the U.S. and China. On a positive note, the number of countries exempt from the U.S.’s proposed steel and aluminum tariffs has continued to grow. This trend will be one to monitor, as it provides an indication of the legitimacy of the proposed tariffs.
  • Last week was a busy one for economic data. On Wednesday, existing home sales increased by more than expected in February, gaining 3 percent on a month-over-month basis. This increase was welcome, following declines in December and January.
  • Also on Wednesday, the Federal Open Market Committee raised the upper limit of the federal funds rate from 1.50 percent to 1.75 percent. This was the first rate hike under new Chair Jerome Powell. Economists expect two to three more hikes this year.
  • Finally, on Friday, February durable goods orders beat expectations, rising 3.1 percent against expectations for a 1.6-percent gain. This was a positive surprise, as business investment slowed in December and January. Given the high level of business confidence, this growth was welcome.
Equity Index Week-to-Date Month-to-Date Year-to-Date 12-Month
S&P 500 –5.93% –4.50% –2.76% 12.52%
Nasdaq Composite –6.53% –3.78% 1.54% 21.49%
DJIA –5.67% –5.87% –4.28% 16.61%
MSCI EAFE –2.57% –2.73% –2.46% 14.47%
MSCI Emerging Markets –3.35% –1.82% 1.48% 24.23%
Russell 2000 –4.77% –0.05% –1.41% 13.03%

Source: Bloomberg

Fixed Income Index Month-to-Date Year-to-Date 12-Month
U.S. Broad Market 0.12% –1.97% 0.74%
U.S. Treasury 0.44% –1.67% –0.05%
U.S. Mortgages 0.25% –1.57% 0.52%
Municipal Bond 0.11% –1.37% 2.59%

Source: Morningstar Direct 

What to look forward to

There are only two major economic reports this week, but each will give us a look at the all-important consumer.

On Tuesday, the Conference Board will release its Consumer Confidence Index. The index is expected to rise from 130.8 in February to 131 in March, as the effects of the tax cuts continue to show up in paychecks. Although recent stock market turbulence may weaken confidence eventually, this survey was taken before last week’s declines, so it should not be affected. If the number comes in as expected, this would be a positive signal for the economy.

On Thursday, the personal income and spending report will be released. Personal income growth is expected to remain steady at a strong 0.4 percent for February, supported by continued employment growth and slow but steady wage growth. Personal spending growth is expected to tick down from 0.2 percent in January to 0.1 percent for February. Any decline would be due to a weather-related drop in utilities spending and a decline in gas prices, making this number better than it seems.Disclosures: Certain sections of this commentary contain forward-looking statements that are based on our reasonable expectations, estimates, projections, and assumptions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. All indices are unmanaged and are not available for direct investment by the public. Past performance is not indicative of future results. The S&P 500 is based on the average performance of the 500 industrial stocks monitored by Standard & Poor’s. The Nasdaq Composite Index measures the performance of all issues listed in the Nasdaq Stock Market, except for rights, warrants, units, and convertible debentures. The Dow Jones Industrial Average is computed by summing the prices of the stocks of 30 large companies and then dividing that total by an adjusted value, one which has been adjusted over the years to account for the effects of stock splits on the prices of the 30 companies. Dividends are reinvested to reflect the actual performance of the underlying securities. The MSCI EAFE Index is a float-adjusted market capitalization index designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI Emerging Markets Index is a market capitalization-weighted index composed of companies representative of the market structure of 26 emerging market countries in Europe, Latin America, and the Pacific Basin. The Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000® Index. The Bloomberg Barclays US Aggregate Bond Index is an unmanaged market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities with maturities of at least one year. The U.S. Treasury Index is based on the auctions of U.S. Treasury bills, or on the U.S. Treasury’s daily yield curve. The Bloomberg Barclays US Mortgage Backed Securities (MBS) Index is an unmanaged market value-weighted index of 15- and 30-year fixed-rate securities backed by mortgage pools of the Government National Mortgage Association (GNMA), Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (FHLMC), and balloon mortgages with fixed-rate coupons. The Bloomberg Barclays US Municipal Index includes investment-grade, tax-exempt, and fixed-rate bonds with long-term maturities (greater than 2 years) selected from issues larger than $50 million.

###

Kris Maksimovich is a financial advisor located at Global Wealth Advisors 18170 Dallas Parkway, Suite 103, Dallas, TX 75287. He offers securities and advisory services as an Investment Adviser Representative of Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. He can be reached at (972) 931-3818 or at info@gwadvisors.net.

Authored by the Investment Research team at Commonwealth Financial Network.

© 2018 Commonwealth Financial Network®

 

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