Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Click for Bio

Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
 

  US Stocks Week Ended June 1, 2012
Posted Under: Weekly Market Commentary
Supporting Image for Blog Post

 
Another week passes and the questions remain the same, how will investors be impacted by the turmoil in Europe? And, how can European sovereign credit issues be resolved? Thus far, there have been many attempts, but no answers. The market wasn't helped by economic data Stateside either. The US economy added jobs of only 69,000 in May, significantly missing expectations. The jobless rate now stands at 8.2%. After Friday's close the Dow stood 336 points lower, a 2.7% decrease from the previous week. Company specific news was light. Mining equipment manufacturer, Joy Global, met earnings expectations but reduced next year's sales and earnings guidance. The stock trades at $55.69 down from a 52 week high of $101.44. JP Morgan announced that CEO, Jamie Dimon, will testify before Congress on the bank's $2 billion trading loss. Congress intends to investigate the trading losses incurred by JP Morgan trader, Bruno Iksil. The company contends that it wasn't a rogue trader, but rather poor execution of a hedging strategy the bank used to reduce risk. Looking ahead, Asian and Australian markets have already closed down Monday, possibly in response to the performance of Friday's western markets. Tuesday, the ISM non-manufacturing index will report its May performance. Also on Tuesday, the London Stock Exchange will be closed to celebrate Queen Elizabeth's Diamond Jubilee. Friday, investors will learn if the US trade deficit narrowed or widened in April. While these data points have been gloomy, there are reasons to feel optimistic. As of close on Friday, the dividend yield of the S&P 500 stood at 2.22% compared to a yield on the 10 year treasury of 1.45%. When the S&P 500's yield has exceeded the yield on the 10 year treasury by more than 50 basis points, the average one year forward return dating back to the 1950's has been 24.58%.
Posted on Monday, June 4, 2012 @ 8:44 AM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
MARKET ANALYSIS
Market Commentary and Analysis
•Market Commentary Video
•Weekly Market Commentary
•Weekly Market Watch
•Monthly Talking Points
•Quarterly Newsletter
•Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
• Time to Develop an Exit Plan from Intermediate & L-T Treasuries
• Don't Fear Stocks If Inflation Climbs Above 3.0%
• Investors Have to Make a Decision
• US Economy and Credit Markets Week Ended May 25, 2012
• US Stocks Week Ended May 25, 2012
• The Business of Energy Distribution
• Senior Loans are a “Go To” Income Vehicle when Rates Rise
• US Economy and Credit Markets Week Ended May 18, 2012
• US Stocks Week Ended May 18, 2012
• If You Can't Beat Them, Join Them!
Archive
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2023 All rights reserved.