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The Weekly Market Snapshot from Frazier Allen for the week of June 12th, 2012

 

Weekly Market Snapshot

Market Commentary by Scott J. Brown, Ph.D., Chief Economist

Scott J. Brown Ph.D., Chief Economist Raymond James Investment Services

On Wednesday, the news from Europe was mixed. Euro area GDP figures for the first quarter were revised lower. Spain indicated that it needs help. The European Central Bank failed to cut rates (as some had hoped). However, European leaders were reported to be working up a plan on Spain and ECB President Draghi hinted at further support to come.

The Fed Beige Book noted that “overall economic activity expanded at a moderate pace” from early April to late May – an upbeat assessment relative to expectations. After the close, Fed Vice Chairman Janet Yellen said that “the economy remains vulnerable to setbacks,” adding that there is scope for the Fed to provide further monetary policy accommodation should the economy weaken or if inflation is expected to trend below the 2% target.

Indices

  Last Last Week YTD return %
DJIA 12460.96 12393.45 1.99%
NASDAQ 2831.02 2827.34 8.67%
S&P 500 1314.99 1310.33 4.56%
MSCI EAFE 1361.94 1332.89 -3.58%
Russell 2000 760.34 761.82 2.62%

Consumer Money Rates

  Last 1-year ago
Prime Rate 3.25 3.25
Fed Funds 0.17 0.10
30-year mortgage 3.68 4.49

Currencies

  Last 1-year ago
Dollars per British Pound 1.555 1.643
Dollars per Euro 1.257 1.468
Japanese Yen per Dollar 79.600 80.150
Canadian Dollars per Dollar 1.025 0.974
Mexican Peso per Dollar 13.978 11.729

Commodities

  Last 1-year ago
Crude Oil 84.82 99.09
Gold 1592.85 1542.35

Bond Rates

  Last 1-month ago
2-year treasury 0.27 0.26
10-year treasury 1.59 1.85
10-year municipal (TEY) 3.05 3.06

Treasury Yield Curve – 6/08/2012

Treasury Yield Curve – 6/08/2012S&P Sector Performance (YTD) – 6/08/2012

S&P Sector Performance (YTD) – 6/08/2012Economic Calendar

June 13th

 —

Retail Sales (May)
June 14th

 —

Consumer Price Index (May)
June 15th

 —

Industrial Production (May)
June 17th

 —

Greece Votes
June 20th

 —

FOMC Policy Decision
Bernanke Press Briefing
July 4th

 —

Independence Day (markets closed)
July 6th

 —

Employment Report (June)

Important Disclosures

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.

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.

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.

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

Material prepared by Raymond James for use by its financial advisors.

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 June 7th, 2012.

©2012 Raymond James Financial Services, Inc. member FINRA / SIPC.


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