2017 First Quarter Review - a strong start

2017 First Quarter Review - a strong start

Economic Commentary - On March 15th, the Federal Reserve raised interest rates by 0.25% to 0.75%, indicating that the US economy is stronger.  Inflation has been at 2.7% for the past 12 months.  Unemployment remained under 5% at 4.7%.  Gross Domestic Product grew by 1.9% in the 4th Qtr of 2016. Housing sales have slowed, while manufacturing increased.  Overall, the economy continues to show improvement.

Market Commentary – The US large-cap stock market has achieved record highs.  This is likely due to relaxed government regulations.  The small-cap market lagged after having achieved significant gains in the past 12 month.  The foreign developed and emerging markets had the best performance. Despite the Fed raising interest rates, bonds performed well.  Continued strength remains to be seen.

Stock Market
Equity 3/31/17 12/30/16 % Change
Dow Jones Industrials 20660.68 19762.60% 4.5%
S&P 500 2362.72 2238.83 5.5%
NASDAQ 100 5436.23 4863,62 11.8%
Russell 2000 1385.92 1357.13 2.1%
Bond Markets
Treasury Yields 3/31/17 12/30/16 % Change
5 Year 1.93% 1.93% 0.0%
10 Year 2.40% 2.25% 6.7%
30 Year 3.02% 3.06 1.4%
Commodities
Commodities 3/31/17 12/30/16 % Change
Gold Spot 1249.13 1151.85 6.7%
Crude Oil 50.65 53.65 -5.6% 
Lending Rates
Lending Rates 3/31/17 12/30/16 % Change
Prime Rate 4.00% 3.75% 6.7%
30 Year Mortgage 4.14% 4.32% -4.2%
15 Year Mortgage 3.39% 3.55% -4.5% 

Sources: US Department of Treasury

               Bloomberg

               US Energy Information

 

Apr 10, 2017