Presented by Mark Gallagher
General market news
• Volatility continues to be the story in the Treasury market. After dropping to 2.17 percent last Wednesday, 10-year yields returned to their recent high of 2.46 percent early Monday morning on news of a Greek debt deal. Rates were at this level just over a week ago, prior to the Independence Day weekend.
• The 30-year Treasury yield has moved between 2.96 percent and 3.25 percent, where it opened early Monday.
• Global equity market performance was generally mixed last week, with U.S. stocks leading the way.
• Large- and small-cap U.S. equities were essentially flat, with the S&P 500 Index increasing 0.03 percent and the Russell 2000 Index gaining 0.31 percent.
• The MSCI Emerging Markets Index posted the worst performance last week, decreasing 3.93 percent amid concerns over China and Greece.
| Equity Index | Week-to-Date | Month-to-Date | Year-to-Date | 12-Month |
| S&P 500 | 0.03% | 0.72% | 1.96% | 7.71% |
| Nasdaq Composite | –0.23% | 0.24% | 6.24% | 14.65% |
| DJIA | 0.19% | 0.87% | 0.90% | 7.32% |
| MSCI EAFE | –0.23% | 0.55% | 6.51% | –1.76% |
| MSCI Emerging Markets | –3.93% | –3.88% | –0.95% | –9.45% |
| Russell 2000 | 0.31% | –0.13% | 4.62% | 9.34% |
Source: Bloomberg
| Fixed Income Index | Month-to-Date | Year-to-Date | 12-Month |
| U.S. Broad Market | –0.32% | –0.42% | 1.59% |
| U.S. Treasury | –0.33% | –0.29% | 2.00% |
| U.S. Mortgages | –0.28% | 0.02% | 2.16% |
| Municipal Bond | 0.04% | 0.15% | 3.46% |
Source: Morningstar Direct
What to look forward to
We will see several important data releases this week, beginning with an expected decrease in Retail Sales.
June inflation trends will be revealed in the Producer and Consumer Price Indices, and Industrial Production and Housing Starts are expected to have improved in June.
The week will end with the release of the University of Michigan Consumer Confidence survey, which is expected to remain high.
Disclosures: Certain sections of this commentary contain forward-looking statements that are based on our reasonable expectations, estimates, projections, and assumptions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. All indices are unmanaged and are not available for direct investment by the public. Past performance is not indicative of future results. The S&P 500 is based on the average performance of the 500 industrial stocks monitored by Standard & Poor’s. The Nasdaq Composite Index measures the performance of all issues listed in the Nasdaq Stock Market, except for rights, warrants, units, and convertible debentures. The Dow Jones Industrial Average is computed by summing the prices of the stocks of 30 large companies and then dividing that total by an adjusted value, one which has been adjusted over the years to account for the effects of stock splits on the prices of the 30 companies. Dividends are reinvested to reflect the actual performance of the underlying securities. The MSCI EAFE Index is a float-adjusted market capitalization index designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI Emerging Markets Index is a market capitalization-weighted index composed of companies representative of the market structure of 26 emerging market countries in Europe, Latin America, and the Pacific Basin. The Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000® Index. The Barclays Capital Aggregate Bond Index is an unmanaged market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities with maturities of at least one year. The U.S. Treasury Index is based on the auctions of U.S. Treasury bills, or on the U.S. Treasury’s daily yield curve. The Barclays Capital Mortgage-Backed Securities (MBS) Index is an unmanaged market value-weighted index of 15- and 30-year fixed-rate securities backed by mortgage pools of the Government National Mortgage Association (GNMA), Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (FHLMC), and balloon mortgages with fixed-rate coupons. The Barclays Capital Municipal Bond Index includes investment-grade, tax-exempt, and fixed-rate bonds with long-term maturities (greater than 2 years) selected from issues larger than $50 million. The Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index measures the performance of intermediate (1- to 10-year) U.S. TIPS.
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Mark Gallagher is a financial advisor located at Gallagher Financial Services at 2586 East 7th Avenue #304. He offers securities and advisory services as an Investment Adviser Representative of Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. He can be reached at 651-774-8759 or at mark@markgallagher.com.
Authored by the Investment Research team at Commonwealth Financial Network.
© 2015 Commonwealth Financial Network®