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Weekly Market Update – September 25, 2015

Stocks were mixed Friday as the Dow gained 113 points while both the NASDAQ and the S&P 500 Index finished in the red.  For the week the Dow was down .4% and for the year the index is now down 9.2%.

Stocks began the day higher Friday after Fed Chairwoman Janet Yellen late Thursday said that the recent turmoil in global financial markets would not have an effect on the Fed’s policy and that she expects interest rates to increase later in the year.  The rally soon faded as weakness in the biotech sector weighted heavily.  Biotech indices were down approximately 15% for the week, the sector’s worst week in seven years.  Fears of overvaluation and comments from Hillary Clinton on Monday stating she would take on “price gouging” within the pharmaceutical industry should she assume the Presidency contributed to the sector’s decline.

The yield on the 10-year Treasury rose 5 basis points Friday to 2.17%, up 4 bps for the week and now flat for the year.  Oil rose 1.7% Friday to settle at $45.70.  The most recent rig count report released Friday, which showed a further drop in the operation of domestic oil drilling rigs, helped give oil prices a boost.

Next week’s economic calendar highlights include a consumer confidence reading on Tuesday, a September manufacturing report and weekly jobless claims on Thursday and the September jobs report on Friday.  Expect consumer confidence to fall slightly, manufacturing activity to show a decline from August, weekly jobless claims to settle in the 270-280,000 range (from 267,000 this week) and the jobs report to show the creation of 200,000 jobs in September (versus 173,000 in August) and the unemployment rate holding steady at 5.1%.


Ulland Investment Advisors

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