All data is for the week ended April 8, 2022
Stocks
Most equity indices were down last week, with the S&P 500 down 1.24%, the Russell 2000 down 4.60%, the NASDAQ down 3.85%, and the Dow Jones down 0.23%. Overseas, developed markets (MSCI EAFE) were down 1.36% and the emerging markets (MSCI EEM) were down 1.52%. In the US, health care and energy were the best performing sectors, while technology and consumer discretionary were the laggards. Value stocks outperformed growth stocks.1
Fixed Income
US Aggregate bond performance was down 1.82% last week as interest rates continued to rise.1 The 10yr US Treasury rate rose to 2.72% and the 2yr Treasury rate rose to 2.53% to end the week.2
Commodities
Oil prices continued to fall, after the International Energy Agency announced that they would release 60 million barrels from emergency reserves.3 WTI Crude oil dropped 1.02% to end the week at $98.26 per barrel.4
Economic Data
Services strength continued this month with new orders rising 4 percentage points to 60.1%. As new orders rise, deliveries are slowing and prices are accelerating as supply chain and labor challenges continue. Prices had the second highest reading ever, behind December 2021. Inventories continue to accelerate, but sentiment indicates that inventories are too low and cannot meet business requirements.5
Mortgage weakening continued this week with the market composite index falling by 6.3% on a seasonally adjusted basis week over week. This decline was mostly driven by less refinancing activity as mortgage rates push 5%.6
Company News7
Costco (COST), a Core Select and Contrarian Choice holding, reported March net sales results 18.7% higher than the prior year, with US sales being particularly strong.8 The stock was up 4.25% for the week.
Starbucks (SBUX), a G50 holding, CEO Howard Schultz suspends share repurchases to invest in future growth as his first action back as CEO.9 The stock was down 10.90% for the week.
Did you know…
Spreuerhofstrasse is one of the world’s narrowest streets, found in the city of Reutlingen, Germany. It ranges from 31 centimeters (12.2 inches) at its narrowest to 50 centimeters (19.7 inches) at its widest. The lane was built in 1727 during the reconstruction efforts after the area was destroyed in the massive citywide fire a year earlier.
Mariann Montagne, CFA
Portfolio Manager
Sources:
1 JP Morgan Weekly Market Recap 4/11/22
3 S&P Global – IEA Reserve Release 4/8/22
5 ISM Non-Manufacturing Index 4/5/22
6 MBA Mortgage Applications 4/6/22
7 All weekly changes in company stock prices: Yahoo Finance