Weekly Market Update - July 12, 2013

Domestic stock prices posted strong gains this week. Equity markets continued to rebound from June losses, with the S&P 500 closing at a new record high on Thursday. Yesterday’s advance was the S&P’s sixth straight, the longest such streak since March. Fueling the gains this week was a realization by investors that any tapering in the Fed’s bond-purchase program may not be a negative for equities. Global markets also advanced sharply on the week. World equity markets rose in lockstep with domestic U.S. markets. European stocks gained ground after a European Central Bank official said that monetary policy would need to continue to be accommodative as a result of a continued slow recovery in Europe. China’s Shanghai Composite Index booked its largest weekly gain in two months.

Treasury prices jumped for the week. The yield on the benchmark 10-year U.S. Treasury dropped sharply, partly due to a perception that Treasurys had been oversold, and partly as a belief that Fed stimulus will continue.

Commodity indices surged on the week. All three of the major commodity complexes – energy, precious metals and grains – advanced this week. Gold posted its biggest weekly gain since 2011.

MARKET DASHBOARD
Index	Price	Weekly Chg.	% Chg.	YTD % Chg.
S&P 500	1,680.17	43.46	2.66%	17.5%
Dow Industrials	15,464.30	333.79	2.21%	18.1%
Nasdaq Composite	3,600.08	101.02	2.90%	18.6%
Russell 2000	1,036.52	27.69	2.75%	21.6%
Euro Stoxx Index	296.20	8.46	2.93%	6.1%
Shanghai Composite	2,039.49	32.29	1.61%	-10.1%
10-Year U.S. Treasury	2.60	-18 bps	NM	8 bps
DJ UBS Commodity Index	128.45	3.12	2.48%	-7.5%
Gold	$1,284.62	$56.63	4.63%	-23.6%
Crude Oil	$106.08	$2.16	2.09%	12.4%
U.S. Dollar Index	82.95	-1.30	-1.54%	4.2%
VIX Index	13.82	-0.94	-6.31%	-22.6%
Source: Bloomberg As of July 12, 2013