New high for the S&P 500, but for the most part a pretty quiet week

Market Recap week ending 12/20/2019

Major US equity indices continued their ascent last week with the S&P 500 inking its 4th straight weekly gain and posting yet another all-time high. For the week, the S&P 500 gained 1.65%, the Dow was up 1.14%, the NASDAQ led gains with an increase of 2.18%, and the Russell 2000 rose 2.07%. It was, for the most part, a pretty quiet week.    Investors dismissed Trump’s impeachment and the passing of the USMCA, which were widely expected.  However, there were a couple of data sets on the economic front worth pointing out. There was a strong showing in housing starts and building permits- both were up nicely and put a bid into the housing stocks.  Additionally, the final reading of the December University of Michigan Consumer Sentiment came in at 99.3 versus consensus expectations of 99.1 and was well above the November reading of 96.8.  Without a real catalyst, it appears the fear of missing out on further performance is driving cash off the sidelines and pushing equities higher.  Safe-haven US Treasuries sold off last week, pushing yields higher and steepening the yield curve.  The 2-year note yield increased by three basis points to close at 1.63% while the 10-year bond yield rose by ten basis points to close at 1.93%.  Gold and Oil were little changed on the week.  Gold gained $0.30 to close at $1481.10 an Oz.  WTI increased $0.27 to close at $60.38 a barrel.  There were no changes to our models last week.

Darren Leavitt, CFA

Portfolio Manager

& Sr. Market Analyst