Weekly Market Update Oct. 12, 2012
Domestic stock prices ended the week with sharp losses. For the first time in months, fundamental factors weighed on stock prices, as disappointing earnings reports in the bank sector dragged stocks lower. The S&P 500 posted its worst weekly performance since June 1. The worse‐than‐expected earnings reports overshadowed today’s consumer confidence data, which rose to the highest level since the beginning of the recession. Global markets also plunged. World markets also declined behind poor earnings data and a slowdown in Asian economies. Data showing that Chinese banks extended a lower amount of loans than had been expected also weighed on stock prices.
Treasury prices rallied this week, and yields declined. Yields on the benchmark 10‐year Treasury fell, as Treasurys advanced each of the past four days. The International Monetary Fund cut eurozone growth estimates, prompting investors to seek a safe haven.
Commodity indexes were mixed again this week. Energy prices rose due to escalating Mideast tensions. Gold and other precious metals eased on profit‐taking. Agricultural prices were little changed.
| MARKET DASHBOARD | ||||
| Index | Price | Weekly Chg. | % Chg. | YTD % Chg. |
| S&P 500 | 1,428.92 | -33.01 | -2.3% | 13.5% |
| Dow Industrials | 13,328.85 | -308.61 | -2.3% | 8.9% |
| Nasdaq Composite | 3,044.12 | -95.44 | -3.0% | 16.7% |
| Russell 2000 | 823.09 | -20.12 | -2.4% | 11.0% |
| Euro Stoxx Index | 269.43 | -4.68 | -1.7% | 10.2% |
| Shanghai Composite | 2,104.93 | 18.76 | 0.9% | -4.3% |
| 10-Year U.S. Treasury | 1.66 | -9 bps | NM | -2 bps |
| DJ UBS Commodity Index | 146.92 | -1.21 | -0.8% | 4.2% |
| Gold | $1,755.03 | -$21.27 | -1.2% | 12.4% |
| Crude Oil | $91.73 | $1.40 | 1.6% | -7.2% |
| U.S. Dollar Index | 79.66 | 0.36 | 0.5% | -0.6% |
| VIX Index | 15.99 | 1.52 | 10.6% | -32.3% |
| Source: Bloomberg | ||||
| As of October 12, 2012 | ||||