All data is for the week ended April 1, 2022
Stocks
Most equity indices were up last week, with the S&P 500 edging up 0.08%, the Russell 2000 rising 0.68% and the NASDAQ adding 0.66%. The Dow Jones eased 0.12%. Overseas, developed markets (MSCI EAFE) added 0.83% and the emerging markets (MSCI EEM) rose 1.92%. In the US, real estate and utilities were the best performing sectors while financials and energy were the laggards. Growth stocks outperformed value stocks.1
Fixed Income
Yields on shorter duration fixed income moved higher than those of the longer duration, resulting in an inverted yield curve which is often feared as an indicator of a future recession. Bond investors tend to focus on the two-year treasury note versus the 10-year note. On Friday the two-year ended with a 2.44% yield, higher than the 10-year at 2.38%.2
Commodities
Oil prices dropped following the president’s order to increase supplies from our strategic reserves at a rate of 1 million barrels per day for the next six months. This follows the government’s ban on Russian oil imports following the invasion of Ukraine.3 The announcement was followed an OPEC’s decision not to increase its production volume.4 The price of West Texas crude dropped 12.8% last week to end at $99.27 per barrel.5
Economic Data
In March the US added 431,000 jobs, far less than the 750,000 positions created in February and less than the consensus forecast of 490,000 jobs. February’s number was adjusted up by nearly 75,000. The unemployment rate was 3.6%, a 0.2% decline from the prior month and the lowest level since before the pandemic. On a year-over year basis, average hourly earnings rose 5.6%.6
Company News7
Bank of America (BAC), a G50, Core Select and Contrarian Choice holding, declined 6.47% last week as bank stocks dropped on worries that an inverted yield curve will lead to softer demand for bank loans and rising payment delinquencies.
DexCom Inc. (DXCM), a G33 and Core Select holding, saw its stock price rise 10.52 % last week following the board’s decision to split the stock 4 for 1 effective June 10.8 Management had also announced earlier this month that its latest glucose continuous monitoring system has been approved in Europe.9
Novo Nordisk (NVO), a G40-I holding, received approved from the FDA for its 2 mg. dose of Ozempic for type 2 diabetes. It had previously been approved in the European Union, Switzerland and Canada. Shares rose 6.01%.10
Did you know…
More than one in every three adult women in the U.S. were Girl Scouts at some point in their lives. There are currently more than 50 million proud Girl Scout alums (including me).
Mariann Montagne, CFA
Portfolio Manager
Sources:
1 JP Morgan Weekly Market Recap 4-4-22
3 White House Statement 3-31-22
6 Bureau of Labor Statistics 4-1-22
7 All weekly changes in company stock prices: Yahoo Finance
8 Dexcom Inc. press release 3-25-22