US markets lost some of the sheen on Friday though performance for the week remained steady. Most of the indexes are either at a multi-year high or at sniffing distance from them. Commodities got some pounding though during the week.
Energy had started off the week on a high with oil hovering around $110 a barrel, a multi-month high. By the end of the week however, prices were down at $106.68 per barrel, a loss of 1.9 percent over the earlier weekly close. The Energy sector also fared worst among all other sectors for the week, shutting shop 1.1 percent lower.
Equity indices hogged the limelight this week with the Dow Jones Industrial Average and S&P 500 hitting their highest levels since 2008. The tech-heavy NASDAQ sizzled, printing its highest level since 2000 during the week’s trading. The NASDAQ briefly flirted with the 3,000, unable to hold on to the psychological level. The DJIA similarly kissed the 13,000 mark, but ended the week a tinge lower, unable to hold on to the gains.
The possibility of a pull-back can’t be ruled out in the coming days with many analysts pointing towards a rally-fatigue. US non-farm payroll is due in the next week and another solid number will consolidate the gains.
Though oil finished the week lower, commodities got a raw deal this week with the CRB Index tumbling 1 percent on Friday itself. For the week however, the losses added up to a relatively modest 1.5 percent.
Shares volumes for the week were unimpressive with Friday clocking the lowest reading. As trouble brewed in the Middle East and no corporate news or economic data worth mentioning on the last trading day of the week, barely 520 million shares changed hands on the NYSE.
Markets got a boost on Thursday however, with retail same-store sales data coming out strong. Consumer spending and confidence will remain one of the major drivers of the market in the coming days.
The latest initial jobless claims for the week came in lower at 351,000 compared to 353,000 in the prior week. The lower number indicates to an improving labor market though headline unemployment rate still remains too high for comfort.
The ISM Manufacturing Index data came in lower at 52.4 in February compared to 54.1 in January. Though weaker-than-anticipated, it still indicated an expansion in manufacturing activities.
Personal income rose 0.3 percent while spending went up by 0.2 percent. Though both fell short of most consensus estimates, still they indicated an overall improvement in sentiments.
Fed Chairman Bernanke delivered his semiannual monetary policy report to Senate banking Committee and skipped mentioning further liquidity injection measures. This was credited with higher selling interests as the week closed to an end.
Earlier in the week, data released indicated fourth quarter GDP-growth touching 3 percent, higher than the advanced reading of 2.8 percent reported earlier.
Durable goods orders fell by 4 percent in January, a surprise reversal from previous month’s 3.2 percent growth.
The Conference Board’s Consumer Confidence Index zoomed to 70.8 in February from 61.5 a month before. Pending home sales jumped 2 percent in January, higher than most consensus estimates.
Europe hogged the limelight at the start of the week, as focus remained on the G20 meeting with officials urging Europe to boost its lifeboat funds. By the middle of the week, the regions 800 banks had mopped up about $700 billion in cheap loans through the second round of LTRO exercise.
Not much activity at the individual stock counters through the week except Apple’s market cap zooming past the $500 billion mark. Social media site Yelp soared 60 percent on debut at the NYSE on Friday; could this be the sign of more “irrational exuberance?”
In the ETF space, investors poured funds in emerging markets with two of the biggest developing market ETFs emerging most popular. Total inflows topped $13.8 billion and overall assets crossed $1.2 trillion, 13.7 percent more over the same period last year, and 4.4 percent higher than the prior month.
The Vanguard MSCI Emerging Markets ETF (VWO) emerged as the most popular fund for the second month in a row, mopping up $2.46 billion in new assets. Vanguard is still trailing iShares and State Street Global Advisors at number 3, but the difference is narrowing.
Disclosure: Holdings in VWO
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