Telemus Weekly Market Review

December 12 – 16

The past trading week featured sideways action in the major averages as the S&P 500 shed 0.06%, the NASDAQ fell 0.13% while the Dow Jones Industrial Average gained 0.44%. Small caps saw relative weakness with the Russell 2000 falling 1.7% after being at the forefront of the post-election rally. The week saw increased trading volume due to Wednesday’s FOMC decision, but participation is expected to be on the decline going into the last two weeks of the year.

The first session of the trading week was headlined by news from Vienna, where non-OPEC producers agreed to reduce their output by 558,000 barrels per day. In addition, a Saudi official indicated that his country may implement a larger cut than what was agreed to on November 30. Crude oil surged to a fresh 2016 high on the news, but pulled back as the week wore on to end the week with a modest gain closing Friday at $52.03.

Equity indices surged on Tuesday as the Fed began its two-day meeting, which concluded with a Wednesday rate hike. However, in addition to increasing the fed funds target range by 25 basis points, the FOMC signaled the intention to raise rates three times in 2017, which was up from market expectations for two rate hikes. In her press conference, Fed Chair Janet Yellen stressed while that the economy had made great strides toward the bank’s inflation and employment goals, the economic outlook remains uncertain.

The FOMC decision and guidance weighed on Treasuries and boosted the dollar. Selling in the 10-yr note pushed up its yield to 2.60% from last Friday’s 2.47% while the U.S. Dollar Index jumped 1.3% to its best level since early 2003.

In Europe, the Italian governmental saga entered a new chapter with Paolo Gentiloni stepping into the Prime Minister role. Greece heightened tensions with its creditors by enacting new spending plans. In Asia fixed-income volatility continued to rumble in China, while reporting suggested the Bank of Japan may be beginning to ponder higher future rates.

December 19 – 23 Economic Calendar

  • Monday
  • PMI Services Flash
    9:45 AM ET
  • Janet Yellen Speaks
    1:30 PM ET
  • EIA Petroleum Status Report
    10:30 AM ET
  • Chicago Fed National Activity Index
    8:30 AM ET
  • Corporate Profits
    8:30 AM ET
  • FIFA House Price Index
    9:00 AM ET
  • Bloomberg Consumer Comfort Index
    9:45 AM ET
  • Personal Income and Outlays
    10:00 AM ET
  • Leading Indicators
    10:00 AM ET
  • EIA Natural Gas Report
    10:30 AM ET
  • Kansas City Fed Mfg Index
    11:00 AM ET
  • Fed Balance Sheet
    4:30 PM ET
  • Money Supply
    4:30 PM ET
  • Tuesday
  • Redbook
    8:55 AM ET

  • Janet Yellen Speaks
    1:30 PM ET
  • EIA Petroleum Status Report
    10:30 AM ET
  • Chicago Fed National Activity Index
    8:30 AM ET
  • Corporate Profits
    8:30 AM ET
  • FIFA House Price Index
    9:00 AM ET
  • Bloomberg Consumer Comfort Index
    9:45 AM ET
  • Personal Income and Outlays
    10:00 AM ET
  • Leading Indicators
    10:00 AM ET
  • EIA Natural Gas Report
    10:30 AM ET
  • Kansas City Fed Mfg Index
    11:00 AM ET
  • Fed Balance Sheet
    4:30 PM ET
  • Money Supply
    4:30 PM ET
  • Wednesday
  • MBA Mortgage Applications
    7:00 AM ET
  • Existing Home Sales
    10:00 AM ET
  • EIA Petroleum Status Report
    10:30 AM ET
  • Chicago Fed National Activity Index
    8:30 AM ET
  • Corporate Profits
    8:30 AM ET
  • FIFA House Price Index
    9:00 AM ET
  • Bloomberg Consumer Comfort Index
    9:45 AM ET
  • Personal Income and Outlays
    10:00 AM ET
  • Leading Indicators
    10:00 AM ET
  • EIA Natural Gas Report
    10:30 AM ET
  • Kansas City Fed Mfg Index
    11:00 AM ET
  • Fed Balance Sheet
    4:30 PM ET
  • Money Supply
    4:30 PM ET
  • Thursday
  • Durable Goods Orders
    8:30 AM ET

  • Jobless Claims
    8:30 AM ET
  • GDP
    8:30 AM ET
  • Chicago Fed National Activity Index
    8:30 AM ET
  • Corporate Profits
    8:30 AM ET
  • FIFA House Price Index
    9:00 AM ET
  • Bloomberg Consumer Comfort Index
    9:45 AM ET
  • Personal Income and Outlays
    10:00 AM ET
  • Leading Indicators
    10:00 AM ET
  • EIA Natural Gas Report
    10:30 AM ET
  • Kansas City Fed Mfg Index
    11:00 AM ET
  • Fed Balance Sheet
    4:30 PM ET
  • Money Supply
    4:30 PM ET
  • Friday
  • New Home Sales
    10:00 AM ET

  • Consumer Sentiment
    10:00 AM ET
  • Baker-Hughes Rig Count
    1:00 PM ET
  • Chicago Fed National Activity Index
    8:30 AM ET
  • Corporate Profits
    8:30 AM ET
  • FIFA House Price Index
    9:00 AM ET
  • Bloomberg Consumer Comfort Index
    9:45 AM ET
  • Personal Income and Outlays
    10:00 AM ET
  • Leading Indicators
    10:00 AM ET
  • EIA Natural Gas Report
    10:30 AM ET
  • Kansas City Fed Mfg Index
    11:00 AM ET
  • Fed Balance Sheet
    4:30 PM ET
  • Money Supply
    4:30 PM ET

PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. This market commentary is a matter of opinion and is for informational purposes only.  It is not intended as investment advice and does not address or account for individual investor circumstances.  Investment decisions should always be made based on the client’s specific financial needs, goals and objectives, time horizon and risk tolerance.  The statements contained herein are based solely upon the opinions of Telemus Capital, LLC.  All opinions and views constitute our judgments as of the date of writing and are subject to change at any time without notice. Information was obtained from third party sources, which we believe to be reliable, but not guaranteed.