The S&P500 moved higher once again last week–although it took a big day of gains on Friday to move us solidly into the green.
The index rose 1.4% after the jobs report on Friday surprised by a huge amount to the upside – forget that the jobs gain number of 353,000 might see giant revisions next month – we play the ‘hand’ we are dealt.
Interest rates moved in a fairly wide range with the 10 year treasury yield trading as low as 3.82% with a high of 4.12%–a 30 basis point range. The yield closed at 4.03% on Friday which was a 13 basis point move lower from the previous Friday.
This week we have only minor economic reports–no major inflation reports–no major employment reports etc. But now that the FOMC meeting is over the Fed yakkers will be out in force as shown below–these folks will move markets as we now go back to the ‘guessing game’ of when do interest rates get cut.
The Federal Reserve balance sheet assets finally took a tumble last week–it had to come as the run off was running way behind $95 billion/month. The fall of $47 billion brings the run off back on schedule.
The average $25/share preferred stock was unchanged last week at $22.03. Investment grade issues rose 4 cents, banks fell 9 cents/share, mREIT preferreds move 1 cent higher—all in all an incredibly quiet week in which we saw the 10 year treasury move in a 30 basis point range.
Last week we had no new income issues priced.