For the week the Dow lost -2.39%, the S&P 500 -1.81%, Nasdaq -1.27%, and the Russell 2000 -0.78%. The S&P 500 chart from my previous post does not need updating because on Fri the market did not move much. Markets around the world also offered dismal weekly returns with the one key exception in Russia which soared +9%. The top performing sectors this week will not be of any major surprise - oil & gas, metals & minerals, precious metals, specialty chemicals, and basic materials. The worst performers were airlines, generic drugs, regional banks, investment brokers, education & training services, department stores, and insurance.
The Treasury bond market is very close to completing a major reversal, and that would signal higher rates over the next 3 - 6 months in S&P analysts view. The 10-year Treasury yield is close to breaking key support at 3.96%, and if it does, a major double bottom in yields will be complete. Yields could then jump to the 4.4% to 4.5% range.
Commodities are still hot these days, and that will influence inflation and make life miserable for the equity investor, unless he/she is in commodity-related stocks. However, there are always exceptions to the rule and certain stocks, sectors will thrive regardless of the general economic pic.
The Baltic Dry Index is up 82% since bottoming in late January, which might be a sign that the global economic environment is not faring as poorly as many think.
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