Market Update - First Week Of April 2021
Stocks
Major indices around the world rose last week, the fourth consecutive week that the key U.S. indices recorded gains. The S&P 500 increased 1.39%, the NASDAQ added 1.10% and the Russell 2000 rose 0.86%. Overseas, the international developed markets (MSCI EAFE) gained 1.67% as the emerging markets (MSCI EM) increased 1.41%. The best performing sectors in the U.S. were utilities and materials while communication services and energy were the laggards.
Fixed Income
Bond prices rose and yields fell with the 10-year treasury down 8 basis points to 1.59%. Rates fell despite higher than expected inflation, likely due to overseas bond investors seeking a safer haven. Also, the Federal Reserve vice chair stated that the Fed will be combing wage and price increases along with productivity before determining its next steps. His inflation expectations index is still below the Fed’s 2% long term goal..
Commodities
Oil prices rose following a report from the Energy Information Administration that U.S. crude inventories fell by 5.9 million barrels for the week ended April 9. This was a much greater decline than the consensus forecast for a decline of 2.9 million barrels for crude stocks, raising prices. The price of West Texas crude rose 6.52% for the week to $63.19 per barrel.
Economic Data
Retail sales for March climbed 9.8% from February and rose 27.7% on a year-over-year basis. That was ahead of the 6% monthly rate the consensus had expected as spending was boosted by the latest round of government stimulus checks and the vaccine rollout. The report showed a reversal from February when retail sales fell 2.7%, worse than expected. Excluding gasoline and auto sales, retail sales were up 8.2% last month (versus expectations for a 5% gain) led by sporting goods, apparel and food service.
The retail sales data come at the same time as upbeat news on the employment front. Initial jobless claims decreased 193,000 to 576,000 in the latest week, the lowest level since the start of the pandemic.
The consumer price index (CPI) rose 0.6% in March or 2.6% on an annual basis for the highest rate in 30 months. After excluding volatile food and energy, core inflation was up 1.6% for the last 12 months. Prices for imported goods climbed 6.9% over the past 12 months for the fastest pace in 11 years after having fallen during the early phases of the pandemic. Fuel was also major driver of the higher import prices; prices minus fuel rose 3.8% over the past year.
Source: Gradient Investments
The financial advisors at Copley Financial Group, Inc. will be updating you on a regular basis about the changes in the market. If you want to discuss these matters with more detail, please contact me or your financial advisor, and we will be more than happy to walk you through them. Here at Copley Financial Group, Inc. with locations in San Diego, CA. and Uniondale, NY. the team and myself will be with you in every step of this process.
