{"id":4547,"date":"2022-05-06T10:29:00","date_gmt":"2022-05-06T14:29:00","guid":{"rendered":"https:\/\/www.ppgadvisors.com\/?p=4547"},"modified":"2022-08-15T10:36:08","modified_gmt":"2022-08-15T14:36:08","slug":"weekly-market-snapshot","status":"publish","type":"post","link":"https:\/\/www.ppgadvisors.com\/weekly-market-snapshot\/","title":{"rendered":"Weekly Market Snapshot"},"content":{"rendered":"\n

Market Commentary by Scott J. Brown, Ph.D., Chief Economist<\/h2>\n\n\n\n

As expected, the Federal Open Market Committee raised the target range for the federal funds rate by 50 basis points (to 0.75-1.00%), indicated that it anticipates \u201congoing increases\u201d in rates at future policy meetings, and announced the start of balance sheet reduction (\u201cquantitative tightening\u201d). Asked about the possibility of more aggressive action, Chair Powell said a 75-bp hike \u201cis not something the committee is actively considering.\u201d\u00a0 Stock market participants were briefly encouraged by Powell\u2019s comments, but remain concerned about that weaker economic growth (or a recession) may be necessary to bring inflation down.\u00a0<\/p>\n\n\n\n

Nonfarm payrolls rose by 428,000 in April, about as expected, while the unemployment rate held steady at 3.6%.\u00a0 Job openings rose to a record 11.5 million in March, while 4.5 million workers quit their jobs. The ISM Manufacturing and Services Indexes both edged down in April, with details indicating strong demand, supply constraints, and elevated inflation pressures. The ADP Employment Report showed increased hiring and retention problems for small firms.\u00a0 Unit motor vehicle sales rose 6.6% in April (vs. March), but remained 21.9% below the level of a year earlier (reflecting supply constraints in production).<\/p>\n\n\n\n

Next week: the economic focus will be on the April CPI report. A decline in gasoline prices (relative to March) will be amplified by the seasonal adjustment, leading to a more modest gain in the headline inflation figure, while sharp gains from a year ago will fall off the 12-month calculation (reducing the year-over-year inflation rate).\u00a0 Stock market participants could celebrate \u201cpeak inflation\u201d being behinds us, but supply\/demand imbalances continue, inflation pressures remain elevated, and the Fed will continue to tighten monetary policy<\/p>\n\n\n\n

<\/p>\n\n\n\n

Indices<\/strong><\/td><\/td><\/tr>
DJIA\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/td>Last\u00a0 Last WeekYTD return %<\/strong>
32.997.9733,916.39 -9.19%<\/td><\/tr>
NASDAQ<\/td>12,317.6912,871.53 -21.27%<\/td><\/tr>
S&P 500\u00a0<\/td>4,146.87 4,287.50\u00a0 -12.99%<\/td><\/tr>
MSCI EAFE\u00a0 <\/td>1,993.23 2,012.60\u00a0 -14.68%<\/td><\/tr>
Russell 2000\u00a0<\/td>1,871.15 1,917.94\u00a0 -16.66%<\/td><\/tr>
<\/td><\/td><\/tr>
Consumer Money Rates<\/strong><\/td> <\/td><\/tr>
Prime Rate<\/td>Last 1 year ago<\/strong>
4.00 3.25<\/td><\/tr>
Fed Funds<\/td>0.80 0.05<\/td><\/tr>
30-year mortgage<\/td>5.62 3.11<\/td><\/tr>
<\/td><\/td><\/tr>
Currencies<\/strong><\/td> <\/td><\/tr>
Dollars per British Pound<\/td>Last 1 year ago<\/strong>
1.236\u00a0 1.310<\/td><\/tr>
Dollars per Euro<\/td>1.054  1.201<\/td><\/tr>
Japanese Yen per Dollar<\/td>130.210 109.210<\/td><\/tr>
Canadian Dollars per Dollar<\/td>1.284  1.227<\/td><\/tr>
Mexican Peso per Dollar<\/td>20.231 20.258<\/td><\/tr>
<\/td><\/td><\/tr>
Commodities<\/strong><\/td> <\/td><\/tr>
Crude Oil<\/td>Last 1 year ago<\/strong>
108.26 65.63<\/td><\/tr>
Gold<\/td>1,875.70 1,784.30<\/td><\/tr>
<\/td><\/td><\/tr>
Bond Rates<\/strong><\/td> <\/td><\/tr>
2-year treasury<\/td>Last 1 month ago<\/strong>
2.70 2.51<\/td><\/tr>
10-year treasury<\/td>3.04 2.55<\/td><\/tr>
10-year municipal (TEY)<\/td>4.31 3.49<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Treasury Yield Curve <\/strong>\u2013 5\/6\/2022<\/p>\n\n\n\n

<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

As of close of business 5\/5\/2022<\/p>\n\n\n\n

S&P Sector Performance (YTD) <\/strong>\u2013 5\/6\/2022<\/h2>\n\n\n\n
\"\"<\/figure>\n\n\n\n

As of close of business 5\/5\/2022<\/p>\n\n\n\n

Economic Calendar<\/h2>\n\n\n\n

May 11\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong>\u2014 Consumer Price Index (April)
May 12\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong>\u2014 Jobless Claims (week ending May 7)
\u2014 Producer Price Index (April)
May 13\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong>\u2014 Import Prices (April)
<\/strong> \u2014 UM Consumer Sentiment (mid-May)
May 17\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong>\u2014 Retail Sales (April)
<\/strong> \u2014 Industrial Production (April)
May 25 <\/strong> \u2014 FOMC Minutes (May 3 to 4)
May 30<\/strong> \u2014 Memorial Day (markets closed)
June 15 <\/strong> \u2014 FOMC Policy Decision<\/p>\n\n\n\n

All expressions of opinion reflect the judgment of the author and are subject to change. There is no assurance any of the forecasts mentioned will occur or that any trends mentioned will continue in the future. Investing involves risks including the possible loss of capital. Past performance is not a guarantee of future results. International investing is subject to additional risks such as currency fluctuations, different financial accounting standards by country, and possible political and economic risks, which may be greater in emerging markets. While interest on municipal bonds is generally exempt from federal income tax, it may be subject to the federal alternative minimum tax, and state or local taxes. In addition, certain municipal bonds (such as Build America Bonds) are issued without a federal tax exemption, which subjects the related interest income to federal income tax. Municipal bonds may be subject to capital gains taxes if sold or redeemed at a profit. Taxable Equivalent Yield (TEY) assumes a 35% tax rate.<\/p>\n\n\n\n

The Dow Jones Industrial Average is an unmanaged index of 30 widely held stocks. The NASDAQ Composite Index is an unmanaged index of all common stocks listed on the NASDAQ National Stock Market. The S&P 500 is an unmanaged index of 500 widely held stocks. The MSCI EAFE (Europe, Australia, Far East) index is an unmanaged index that is generally considered representative of the international stock market. The Russell 2000 index is an unmanaged index of small cap securities which generally involve greater risks. An investment cannot be made directly in these indexes. The performance noted does not include fees or charges, which would reduce an investor\u2019s returns. U.S. government bonds and treasury bills are guaranteed by the US government and, if held to maturity, offer a fixed rate of return and guaranteed principal value. U.S. government bonds are issued and guaranteed as to the timely payment of principal and interest by the federal government. Treasury bills are certificates reflecting short-term (less than one year) obligations of the U.S. government.<\/p>\n\n\n\n

Commodities trading is generally considered speculative because of the significant potential for investment loss. Markets for commodities are likely to be volatile and there may be sharp price fluctuations even during periods when prices overall are rising. Specific sector investing can be subject to different and greater risks than more diversified investments. Gross Domestic Product (GDP) is the annual total market value of all final goods and services produced domestically by the U.S. The federal funds rate (\u201cFed Funds\u201d) is the interest rate at which banks and credit unions lend reserve balances to other depository institutions overnight. The prime rate is the underlying index for most credit cards, home equity loans and lines of credit, auto loans, and personal loans. Material prepared by Raymond James for use by financial advisors. Data source: Bloomberg, as of close of business May 05, 2022.<\/p>\n","protected":false},"excerpt":{"rendered":"

Market Commentary by Scott J. Brown, Ph.D., Chief Economist As expected, the Federal Open Market Committee raised the target range for the federal funds rate by 50 basis points (to 0.75-1.00%), indicated that it anticipates \u201congoing increases\u201d in rates at future policy meetings, and announced the start of balance sheet reduction (\u201cquantitative tightening\u201d). Asked about […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"post_statement":"","post_description":"","post_cta":"","post_button":"Read More","post_button_url":"","footnotes":"","compliance_id":"","post_disclaimer":""},"categories":[1],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.ppgadvisors.com\/wp-json\/wp\/v2\/posts\/4547"}],"collection":[{"href":"https:\/\/www.ppgadvisors.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ppgadvisors.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ppgadvisors.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ppgadvisors.com\/wp-json\/wp\/v2\/comments?post=4547"}],"version-history":[{"count":5,"href":"https:\/\/www.ppgadvisors.com\/wp-json\/wp\/v2\/posts\/4547\/revisions"}],"predecessor-version":[{"id":4557,"href":"https:\/\/www.ppgadvisors.com\/wp-json\/wp\/v2\/posts\/4547\/revisions\/4557"}],"wp:attachment":[{"href":"https:\/\/www.ppgadvisors.com\/wp-json\/wp\/v2\/media?parent=4547"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ppgadvisors.com\/wp-json\/wp\/v2\/categories?post=4547"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ppgadvisors.com\/wp-json\/wp\/v2\/tags?post=4547"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}