Weekly Market Update November 16, 2012
Domestic stock extended their post‐election decline this week. Investors continued to focus on fiscal cliff negotiations which got underway today. In addition, with capital gains tax rates likely to rise next year, investors are realizing gains this year to take advantage of the lower capital gains tax rate.
Global markets also tumbled again. World markets focused on the fiscal cliff negotiations in the U.S. as well as rising tensions in the Middle East. An escalation in the cross‐border shelling between Hamas in Gaza and Israel has investors worried that the situation could quickly draw in other countries in the region, including Egypt, Syria and Iran.
Treasury prices rose modestly this week. Yields on the benchmark 10‐year Treasury ended the week slightly lower – and near 10‐week lows ‐ as a result of the stock market’s continued decline and the beginning of deficit reduction negotiations.
Commodity indexes were mixed on the week. Prices were relatively stable this week in energy and precious metals, while agricultural commodities declined due to reports that China canceled soybean purchases from the U.S.
| MARKET DASHBOARD | ||||
| Index | Price | Weekly Chg. | % Chg. | YTD % Chg. |
| S&P 500 | 1,358.97 | -19.76 | -1.4% | 8.1% |
| Dow Industrials | 12,588.31 | -227.08 | -1.8% | 3.0% |
| Nasdaq Composite | 2,853.13 | -51.74 | -1.8% | 9.5% |
| Russell 2000 | 776.30 | -18.68 | -2.3% | 4.8% |
| Euro Stoxx Index | 262.86 | -7.41 | -2.7% | 7.5% |
| Shanghai Composite | 2,014.73 | -54.34 | -2.6% | -8.4% |
| 10-Year U.S. Treasury | 1.57 | -4 bps | NM | -3 bps |
| DJ UBS Commodity Index | 140.95 | 0.16 | 0.1% | 0.2% |
| Gold | $1,713.33 | -$18.09 | -1.0% | 9.5% |
| Crude Oil | $86.67 | $0.00 | 0.0% | -11.7% |
| U.S. Dollar Index | 81.20 | 0.19 | 0.2% | 1.3% |
| VIX Index | 16.85 | -1.86 | -10.0% | -28.4% |
| Source: Bloomberg | ||||
| As of November 16, 2012 | ||||