William Riegel, Head of Equity Investments
Lisa Black, Head of Global Public Fixed-Income Markets
November 27, 2013
With the U.S. trading week shortened to just three and a half days and many investors either already home for Thanksgiving or well on their way, equity and fixed-income markets have been relatively quiet. Moreover, many recent economic releases have been non-events, with few data surprises to sway the markets or signal a shift in the economy’s current growth trajectory.
For the month to date through November 25, the S&P 500 Index was up 2.8%, while foreign developed- and emerging-market equities returned 0.2% and -2.2%, respectively, based on MSCI indexes. Many investment-grade bond sectors, including U.S. Treasuries, produced flat to slightly negative returns during the same period, while high-yield corporate bonds continued to outperform. The yield on the bellwether 10-year Treasury security has stayed within a narrow range, generally between 2.6% and 2.8%, throughout much of November.
Current market updates are available here .
Housing indicators are mixed, while consumer confidence drifts lower
Among the week’s limited data releases was a mixed bag of housing news:
Meanwhile, The Conference Board’s monthly index of consumer confidence headed lower for the third consecutive month in November, reflecting increased pessimism about jobs and income growth.
As of November 26, major U.S. equity indexes seemed content to stay put at or near the record-high levels reached in the past month. In fixed-income markets, investors are looking ahead to “flash” results of Black Friday retail spending, as well as the November monthly payrolls report (scheduled for release on December 6), for further clues on the potential timing of Federal Reserve tapering. The Fed’s next Open Market Committee meeting is scheduled for December 17-18.
From a practical perspective, there are only two to three weeks of active trading left in the debt markets in 2013, and many investors are essentially done for the year. As a result, the impact of whatever trading we do see could be magnified because it will be occurring on very thin volume.
The next Weekly Market Update will be published on Friday, December 6.
The information provided herein is as of November 27, 2013.
The material is for informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate. Certain products and services may not be available to all entities or persons.
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Please note that equity and fixed income investing involve risk.
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