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Weekly Market Update – April 2, 2015

The Dow rose 65 points Thursday on positive geopolitical news and the expectation of another solid jobs report Friday.  For the week the Dow was up .3% and for the year the index is now down .3%.

News broke Thursday that a framework for a nuclear deal with Iran had been established, sending markets higher.  The deal would not put an end to Iran’s enrichment capabilities, but would limit its enrichment capacity in exchange for the lifting of economic sanctions that have crippled the country’s economy.  The parties involved in the talks have until the end of June to finalize the agreement.  Oil rose over a dollar after the announcement but still finished the day down 1.9% at $49.14 per barrel.  

Meanwhile, in the US, Friday’s March jobs report is expected to show the addition of approximately 260,000 jobs and an unchanging unemployment rate (currently at 5.5%).  The data is not expected to markedly change the Fed’s plans to raise interest rates later this year.

The yield on the 10-year Treasury rose 4 bps Friday to 1.90%, down 5 bps for the week and now down 27 bps for the year.  In the first quarter of the year ending Tuesday, March 31, our trust preferred portfolios were up approximately 3.5%, on average, versus 1.61 % for the Barclays Aggregate Bond Index. 

Next week’s economic calendar is a quiet one, the only data release of note being weekly jobless claims on Thursday.  Expect jobless claims to settle in the 280,000 – 290,000 range (from 268,000 this week – a good number).  First quarter corporate earnings will begin in earnest as well.

Markets and our office will be closed tomorrow, Friday, April 3, in observance of Good Friday.

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Ulland Investment Advisors

4550 IDS Center · Eighty South Eighth Street · Minneapolis MN 55402 · Telephone: 612-312-1400 · Facsimile: 612-204-3464