Money Watch: Weekly Wrap
Geopolitical risk is the risk that investment returns could be negatively affected by political/government changes or instability in a country. That's what happened on Friday--stocks plunged on Egypt protests, while US government bonds and gold and rose.
The market losses occurred after the US government reported that the US economy grew by 3.2 percent in the fourth quarter of 2010, bringing total growth for the year to 2.9 percent, the highest annual rate since 2005.
The events in Egypt pushed aside talk of Dow 12,000 or S&P 500 1300, as another streak came to end. The Dow broke eight straight weeks of gains as US markets closed lower on the week.
- DJIA: 11,823, down 0.4% on week, up 2.1% YTD
- S&P 500: 1276, down 0.5% on week, up 1.5% YTD
- NASDAQ: 2686, down 0.1% on week, up 1.3% YTD
- March Crude Oil: $89.34, up 0.2% on week
- April Gold: $1341.70, down 0.02% on week
FACTOIDS OF THE WEEK: GDP edition
- The post-war average growth rate = 3.3 percent
- In 2006, when housing was peaking and the financial sector was exploding, annual growth was up 2.7 percent
- Of the 3.2 percent Q4 growth, 3.02 percent was contributed by consumer spending, which was up 4.4 percent
- In the past 50 years, there have only been six calendar years where the US economy shrank 1974 (-0.6%), 1975 (-0.2%), 1980 (-0.3%), 1982 (-1.9%), 1991 (-0.2%) and 2009 (-2.6%)
Mon 1/31:
Exxon Mobil
8:30 Personal Income and Spending
9:45 Chicago PMI
Tues 2/1:
Aflac, BP, UPS,
Motor Vehicle Sales
10:00 ISM Manufacturing Index
10:00 Construction Spending
Weds 2/2:
AOL, Genworth, Hartford, Time Warner, Visa,
7:30 Challenger Job Cut Report
8:15 ADP Employment Report
Thurs 2/3:
Blackstone, CVS, Moody's, NY Times, Toyota
8:30 Weekly Claims
8:30 Productivity and Costs
10:00 ISM Non-Manufacturing Index
Fri 2/4:
Clorox
8:30 January Jobs Report
