U.S. stocks finished at session highs on Friday, pushing the
S&P 500 higher for a second day, to cap its best week since July 17th.
Equity markets ended a volatile week, with wide swings, as investors wrestle
with uncertainty ahead of this week Federal Reserve policy decision on interest
rates due out on Thursday.
In notable post-Labor Day economic data, Wednesday's Job
Openings and Labor Turnover Summary (JOLTS) from the U.S. Bureau of Labor
Statistics showed job openings surged in July, rising to 5.753 million from an
upwardly revised 5.323 million in June.
For the week, the S&P 500 rose +2.13%; The Dow Industrials
gained +2.05%, EAFE (developed international) added 2.07%.
What We're Reading
China Takes a Step Toward
Data Accuracy Using New Method for 3Q GDP
|
|
|
Stocks
|
1-Wk
|
|
|
YTD
|
1-Year
|
|
DOW
|
2.05%
|
|
|
-7.80%
|
-3.62%
|
|
S&P 500
|
2.13%
|
|
|
-3.34%
|
0.22%
|
|
NASDAQ
|
2.98%
|
|
|
2.66%
|
6.24%
|
|
Russell 3000
|
2.08%
|
|
|
-2.99%
|
0.14%
|
|
MSCI EAFE
|
2.07%
|
|
|
-1.98%
|
-8.20%
|
|
MSCI Emerging Markets
|
1.87%
|
|
|
-14.45%
|
-23.14%
|
|
Bonds
|
1-Week
|
|
|
YTD
|
1-Year
|
|
Barclays Agg Bond
|
-0.12%
|
|
|
0.67%
|
2.56%
|
|
Barclays Municipal
|
-0.19%
|
|
|
0.85%
|
2.67%
|
|
Barclays US Corp High Yield
|
0.46%
|
|
|
0.77%
|
-1.32%
|
|
Commodities
|
1-Week
|
|
|
YTD
|
1-Year
|
|
Bloomberg Commodity
|
0.50%
|
|
|
-14.74%
|
-26.88%
|
|
S&P GSCI Crude Oil
|
-2.16%
|
|
|
-15.42%
|
-51.08%
|
|
S&P GSCI Gold
|
-1.61%
|
|
|
-6.82%
|
-10.96%
|
|
|
Reviewing Past Market Corrections & Recoveries
|
Reviewing Past Market Corrections & Recoveries
|
|
There have been 19 corrections since WWII.
Following the latest, the S&P 500 has slightly recovered off of the 12.4%
decline from its most recent peak and now trades 7.9% below its May 21
all-time high. History says, however, that the worst may not be over, as
Septembers typically show an additional decline of about 4% after the market
was down more than 5% in August. Plus, the time between corrections implies
that the S&P 500, historically, needs to decline even further to reset
the dials after such a lengthy advance between 10%+ declines, according to
S&P Capital IQ. Add to these the projected 3.8% decline in 3Q S&P 500
operating EPS, and the resurrected possibility that the Fed may begin its
rate-tightening cycle at its upcoming September 16-17 FOMC meeting, and we
see that the possibility exists for a further re-test.
|
