Well finally we get by the holidays for a while – with all the market players getting back to work we will likely soon see more wild moves in the market. Santa made December a very good month for most all sectors–will January take away some of those gains.
The S&P500 moved 1/3% higher last week over the previous Friday–the low was 4736 with the high around 4793–closing around 4770. It isn’t that often that we seen stocks trade in a range of just over 1%.
The 10 year treasury moved in a range of 3.79% to 3.91%–closing at 3.87% which was 3 basis points lower than the close the previous Friday. Just like stocks we may be in for more wild action in the coming weeks–we do have the job openings and turnover report on Wednesday along with the ADP employment report (seemingly now being taken as ‘important’)–also the minutes from the Feds December meeting. Then on Friday we have the ‘official’ government jobs report which will be heavily scrutinized.
The Federal Reserves balance sheet fell by $11 billion–that makes a fall of just $25 billion in December–we will see a big swoosh down in the next 2 weeks and the run off plays catchup to the $95 billion monthly target.
The average $25/share preferred and baby bond moved little last week–down 5 cents. Investment grade moved 3 cents lower with banks down 12 cents. mREITs were off 9 cents while shippers seemed to be one of the few ‘green’ sectors and were up 13 cents.
I present the data in 2 charts–the 1st showing the average share against the 10 year treasury. The second chart showing various sectors against the average share and the 10 year treasury.
Last week we had no new income issues priced.
Below is where recent new issues ended 12/29/2023.