{"id":12316,"date":"2012-08-28T14:00:38","date_gmt":"2012-08-28T19:00:38","guid":{"rendered":"http:\/\/www.discoverclarksville.com\/articles\/?p=12316"},"modified":"2012-08-28T02:43:49","modified_gmt":"2012-08-28T07:43:49","slug":"the-weekly-market-snapshot-from-frazier-allen-for-the-week-of-august-28th-2012","status":"publish","type":"post","link":"https:\/\/www.discoverclarksville.com\/articles\/2012\/08\/28\/the-weekly-market-snapshot-from-frazier-allen-for-the-week-of-august-28th-2012\/","title":{"rendered":"The Weekly Market Snapshot from Frazier Allen for the week of August 28th, 2012"},"content":{"rendered":"

\"Weekly<\/p>\n

Market Commentary by Scott J. Brown, Ph.D., Chief Economist<\/span><\/em><\/strong><\/p>\n

\"ScottThe FOMC Minutes from the July 31st\/August 1st policy meeting showed that Fed officials were worried about the deceleration in economic growth. “Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery.”<\/em> However, “several members noted the benefits of accumulating further information that could help clarify the contours of the outlook for economic activity and inflation as well as the need for further policy action.”<\/em><\/p>\n

Meeting participants discussed three policy options: extending the forward guidance (the length of time which the Fed expects to keep short-term rate exceptionally low), undertaking another round of asset purchases, and lowering the interest rate the Fed pays on excess bank reserves. Extending the forward guidance appeared to have the least amount of internal resistance, but additional asset purchases had some support.The economic data were mixed. Home sales rebounded in July. Durable goods orders jumped 4.2%, led by a surge in orders at Boeing. Ex-transportation, orders fell 0.4%, and June was revised to -2.2% (from -1.4%). Ex-transportation, unfilled orders declined and inventories picked up \u2013 not a good sign.<\/p>\n

Next week, there are plenty of potentially market-moving data releases, but market reaction should be relatively limited ahead of Bernanke\u2019s Jackson Hole speech. Investors will be looking for clearer signals of QE3, but may be disappointed. Governor Romney will deliver his acceptance speech on Thursday evening and presidential candidates normally get a brief pop in the polls after the convention.<\/p>\n

Indices<\/h3>\n\n\n\n\n\n\n\n\n
<\/td>\nLast<\/strong><\/td>\nLast Week<\/strong><\/td>\nYTD return %<\/strong><\/td>\n<\/tr>\n
DJIA<\/td>\n13057.46<\/td>\n13250.11<\/td>\n6.87%<\/td>\n<\/tr>\n
NASDAQ<\/td>\n3053.40<\/td>\n3062.39<\/td>\n17.21%<\/td>\n<\/tr>\n
S&P 500<\/td>\n1402.08<\/td>\n1415.51<\/td>\n11.49%<\/td>\n<\/tr>\n
MSCI EAFE<\/td>\n1495.65<\/td>\n1483.60<\/td>\n5.88%<\/td>\n<\/tr>\n
Russell 2000<\/td>\n806.00<\/td>\n813.08<\/td>\n8.78%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Consumer Money Rates<\/strong><\/h3>\n\n\n\n\n\n\n
<\/td>\nLast<\/strong><\/td>\n1-year ago<\/strong><\/td>\n<\/tr>\n
Prime Rate<\/td>\n3.25<\/td>\n3.25<\/td>\n<\/tr>\n
Fed Funds<\/td>\n0.15<\/td>\n0.12<\/td>\n<\/tr>\n
30-year mortgage<\/td>\n3.55<\/td>\n4.26<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Currencies<\/h3>\n\n\n\n\n\n\n\n\n
<\/td>\nLast<\/strong><\/td>\n1-year ago<\/strong><\/td>\n<\/tr>\n
Dollars per British Pound<\/td>\n1.587<\/td>\n1.650<\/td>\n<\/tr>\n
Dollars per Euro<\/td>\n1.258<\/td>\n1.442<\/td>\n<\/tr>\n
Japanese Yen per Dollar<\/td>\n78.490<\/td>\n76.640<\/td>\n<\/tr>\n
Canadian Dollars per Dollar<\/td>\n0.993<\/td>\n0.989<\/td>\n<\/tr>\n
Mexican Peso per Dollar<\/td>\n13.143<\/td>\n12.327<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Commodities<\/strong><\/h3>\n\n\n\n\n\n
<\/td>\nLast<\/strong><\/td>\n1-year ago<\/strong><\/td>\n<\/tr>\n
Crude Oil<\/td>\n95.97<\/td>\n85.27<\/td>\n<\/tr>\n
Gold<\/td>\n1673.00<\/td>\n1857.20<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Bond Rates<\/h3>\n\n\n\n\n\n\n
<\/td>\nLast<\/strong><\/td>\n1-month ago<\/strong><\/td>\n<\/tr>\n
2-year treasury<\/td>\n0.26<\/td>\n0.24<\/td>\n<\/tr>\n
10-year treasury<\/td>\n1.67<\/td>\n1.50<\/td>\n<\/tr>\n
10-year municipal (TEY)<\/td>\n3.25<\/td>\n2.92<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Treasury Yield Curve \u2013 8\/24\/2012 <\/strong><\/h3>\n
\"Treasury<\/a><\/div>\n

S&P Sector Performance (YTD) \u2013 8\/24\/2012 <\/strong><\/h3>\n

\"S&P<\/a><\/p>\n

Economic Calendar<\/h3>\n\n\n\n\n\n\n\n\n\n\n\n
August 28th<\/strong><\/td>\n\n

\u2014<\/p>\n<\/td>\n

S&P\/C-S Home Price Index (June)
\nConsumer Confidence (August)<\/td>\n<\/tr>\n
August 29th<\/strong><\/td>\n\n

\u2014<\/p>\n<\/td>\n

Real GDP (2Q12, 2nd estimate)
\nPending Home Sales Index (July)
\nFed Beige Book<\/td>\n<\/tr>\n
August 30th<\/strong><\/td>\n\n

\u2014<\/p>\n<\/td>\n

Jobless Claims (week ending 8\/25th)
\nPersonal Income and Spending (July)
\nRomney Acceptance Speech<\/td>\n<\/tr>\n
August 31st<\/strong><\/td>\n\n

\u2014<\/p>\n<\/td>\n

Chicago Purchasing Managers Index (August)
\nConsumer Sentiment (August)
\nBernanke Speaks (Jackson Hole)<\/td>\n<\/tr>\n
September 1st<\/strong><\/td>\n\n

\u2014<\/p>\n<\/td>\n

ECB President Draghi speaks (Jackson Hole)<\/td>\n<\/tr>\n
September 3rd<\/strong><\/td>\n\n

\u2014<\/p>\n<\/td>\n

Labor Day Holiday (markets closed)<\/td>\n<\/tr>\n
September 6th<\/strong><\/td>\n\n

\u2014<\/p>\n<\/td>\n

Obama Acceptance Speech<\/td>\n<\/tr>\n
September 7th<\/strong><\/td>\n\n

\u2014<\/p>\n<\/td>\n

Employment Report (August)<\/td>\n<\/tr>\n
September 13th<\/strong><\/td>\n\n

\u2014<\/p>\n<\/td>\n

Fed Policy Meeting
\nBernanke Press Briefing<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Important Disclosures<\/h3>\n

[320left]Past performance is not a guarantee of future results. There are special risks involved with global investing related to market and currency fluctuations, economic and political instability, and different financial accounting standards. The above material has been obtained from sources considered reliable, but we do not guarantee that it is accurate or complete. There is no assurance that any trends mentioned will continue in the future. While interest on municipal bonds is generally exempt from federal income tax, it may be subject to the federal alternative minimum tax, 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. Investing involves risk and investors may incur a profit or a loss.<\/p>\n

US 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. US 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 US government.<\/p>\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.<\/p>\n

Tax Equiv Muni yields (TEY) assume a 35% tax rate on triple-A rated, tax-exempt insured revenue bonds.<\/p>\n

\"\"<\/a>Material prepared by Raymond James for use by its financial advisors.<\/p>\n

The information contained herein has been obtained from sources considered reliable, but we do not guarantee that the foregoing material is accurate or complete. Data source: Bloomberg, as of close of business August 23rd, 2012.<\/p>\n

\u00a92012 Raymond James Financial Services, Inc. member FINRA<\/a> \/ SIPC<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Market Commentary by Scott J. Brown, Ph.D., Chief Economist The FOMC Minutes from the July 31st\/August 1st policy meeting showed that Fed officials were worried about the deceleration in economic growth. “Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in […]<\/p>\n","protected":false},"author":23,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[3],"tags":[4066,4067,3059,4068,3695,4069,3060,3061,3062,3063,4071,3064,3065,3066,3697,3698,3067,3068],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p4xGYI-3cE","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.discoverclarksville.com\/articles\/wp-json\/wp\/v2\/posts\/12316"}],"collection":[{"href":"https:\/\/www.discoverclarksville.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.discoverclarksville.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.discoverclarksville.com\/articles\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/www.discoverclarksville.com\/articles\/wp-json\/wp\/v2\/comments?post=12316"}],"version-history":[{"count":1,"href":"https:\/\/www.discoverclarksville.com\/articles\/wp-json\/wp\/v2\/posts\/12316\/revisions"}],"predecessor-version":[{"id":12317,"href":"https:\/\/www.discoverclarksville.com\/articles\/wp-json\/wp\/v2\/posts\/12316\/revisions\/12317"}],"wp:attachment":[{"href":"https:\/\/www.discoverclarksville.com\/articles\/wp-json\/wp\/v2\/media?parent=12316"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.discoverclarksville.com\/articles\/wp-json\/wp\/v2\/categories?post=12316"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.discoverclarksville.com\/articles\/wp-json\/wp\/v2\/tags?post=12316"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}