Call us today!

Phone: (512) 498-PLAN (7526)

Weekly Vantage Point | 10.19.15

U.S. Stocks Higher on Hopes for Fed Pause

October 19, 2015 — U.S. stocks were slightly up on Friday as investors continued to digest corporate earnings and economic data. In earnings news, shares of Industrials bellwether General Electric (GE) rose after the company beat earnings estimates. Economic data came in mixed on Friday, as one report showed U.S. factory output fell in September as high inventories and tepid overseas demand weigh on producers, while another report showed that consumer sentiment rose unexpectedly in October. Earlier in the week, a weak inflation report helped spur investor hopes that the Federal Reserve would hold off raising rates until sometime in 2016.

The major benchmarks ended mixed for the week, with the large-cap indices managing to build on their strong gain from the previous week, while the small-cap and mid-cap indexes struggled. For the week, the S&P 500 advanced 0.93%; the Dow Industrials added 0.77%; and the NASDAQ Composite rose 1.17%. The technology-heavy NASDAQ Composite led the S&P 500 and the Dow Industrials as it was helped by a bounce in biotechnology stocks after the topic of drug pricing did not feature prominently in the first Democratic presidential debate as some investors had feared.

In the bond market last week, U.S. Treasuries rallied, pushing their yields lower (10-year Treasury lost 7 basis points on the week), as generally weak economic data led more investors to believe that the Federal Reserve will delay interest rate "liftoff" until 2016. The week also featured many public speeches from Fed officials, whose statements largely struck a dovish tone.

Eight of the major sectors posted gains led by Utilities (2.29%), Health Care (1.96%) and Telecom (1.87%). Industrials (-1.21%) and Materials (-0.12%) were the only decliners of the week. 10-year Treasury yields fell 0.074 percentage points to 1.982%. For the week, despite falling on Friday, Gold rose 2.35%. On the other hand, WTI crude oil was down 4.44% for the week.

quote icon
Words of Wisdom

"Every day I get up and look through the Forbes list of the richest people in America. If I'm not there, I go to work."

— Robert Orben

world icon
Market Watch
Stocks 1-Wk MTD 3-Month YTD 1-Year
DOW 0.77% 5.72% -4.99% -3.41% 6.82%
S&P 500 0.93% 5.98% -3.77% 0.38% 11.43%
NASDAQ 1.17% 5.80% -5.08% 4.10% 17.22%
Russell 3000 0.70% 5.84% -4.46% 0.07% 11.03%
MSCI EAFE 0.29% 7.25% -6.37% 1.59% 5.45%
MSCI Emerging Markets 0.71% 9.32% -7.58% -7.60% -8.66%
Bonds 1-Week MTD 3-Month YTD 1-Year
Barclays Agg Bond 0.37% 0.43% 1.62% 1.56% 1.80%
Barclays Municipal 0.21% 0.25% 1.72% 2.02% 1.93%
Barclays US Corp High Yield 0.07% 2.22% -2.95% -0.29% -0.38%
Commodities 1-Week MTD 3-Month YTD 1-Year
Bloomberg Commodity -1.35% 2.23% -8.45% -13.92% -23.61%
S&P GSCI Crude Oil -4.44% 5.83% -6.87% -10.42% -41.79%
S&P GSCI Gold 2.35% 6.09% 3.24% -0.08% -4.68%
Source: MorningStar
Homebuilders are Optimistic But Home Buyers Face Obstacles
View larger image »
Home Buyers Still Face Obstacles

With the National Association of Home Builders/Wells Fargo housing market index, a monthly survey that measures market conditions for new home sales, showing its highest sentiment in 10 years, we thought it would be a great opportunity to review lending conditions and affordability. While builders are optimistic, buyers continue to face obstacles. The chart on the left illustrates one measure of housing affordability, which is well below its historical average. The chart on the top right shows while houses have become more affordable to those who already own one, the size of the down payment relative to income is keeping many out of the housing market. The bottom right chart shows the average FICO score on new approved mortgage loans, which is relatively high compared to historical averages, also limiting access.

newspaper icon
Week's Economic Calendar

Monday, October 19: Homebuilders Index;

Tuesday, October 20: Housing Starts;

Wednesday, October 21: MBA Mortgage Applications;

Thursday, October 22: Weekly Jobless Claims, Existing Home Sales;

Friday, October 23: PMI Manufacturing Index (Flash)

question icon
Weekly Trivia

Today: In China, animals are forbidden to use human language. This belief led to the ban of which book and which famous writer in that country?

Last Week: Which of the following are available as 'drive-throughs' someplace in the United States?

  • casket viewings
  • weddings
  • voter registration
  • liquor store

Answer: All of them!

Copyright © 2015 Cetera Financial Group, Inc., RCS Capital Corporation's (NYSE:RCAP) retail investment advice platform.
All rights reserved.
200 N. Sepulveda Blvd, Ste 1200, El Segundo, CA 90245
Privacy Policy - Contact Us

This message is compiled by Tower Square Investment Management

No independent analysis has been performed and the material should not be construed as investment advice. Investment decisions should not be based on this material since the information contained here is a singular update, and prudent investment decisions require the analysis of a much broader collection of facts and context. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The opinions expressed are as of the date published and may change without notice. Any forward-looking statements are based on assumptions, may not materialize, and are subject to revision.

All economic and performance information is historical and not indicative of future results. The market indices discussed are unmanaged. Investors cannot directly invest in unmanaged indices. Please consult your financial advisor for more information.

The return and principal value of bonds fluctuate with changes in market conditions. If bonds are not held to maturity, they may be worth more or less than their original value. The yield on high yield bonds is due, in part, to the volatility and risk of the high securities market. High yield bonds are also known as "junk bonds".

Additional risks are associated with international investing, such as currency fluctuations, political and economic instability, and differences in accounting standards.

Affiliates and subsidiaries and/or officers and employees of Cetera Financial Group or Cetera firms may from time to time acquire, hold or sell a position in the securities mentioned herein.

While diversification may help reduce volatility and risk, it does not guarantee future performance.

DJIA is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq.

The S&P 500 is an index of 500 stocks chosen for market size, liquidity and industry grouping (among other factors) designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe.

The MSCI EAFE Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada.

The Barclays US Aggregate bond index is an unmanaged index composed of Barclays Credit government bond index, mortgage backed securities index, and asset backed securities index and is generally representative of the US Bond market.

CRB Index: A pricing index that measures changes in the price of 22 commodities that are believed to be among the first to react to changes in economic conditions.

The S&P GSCI Gold Index, a sub-index of the S&P GSCI, provides investors with a reliable and publicly available benchmark tracking the COMEX gold future.

The S&P GSCI Crude Oil Index is a sub-index of the S&P GSCI and provides investors with a publicly available benchmark for investment performance in the crude oil market.

The Caixin Flash China General Manufacturing Purchasing Managers' Index™ (PMI™) is published on a monthly basis ahead of final PMI data, making the Caixin PMI the earliest available indicator of manufacturing sector operating conditions in China. The estimate is typically based on approximately 85%-90% of total PMI survey responses each month and is designed to provide an accurate indication of the final PMI data.

Tower Square Investment Management is part of Cetera Financial Group, Inc. Cetera Financial Group, Inc. has a network of independent broker-dealers, investment advisers registered with the SEC, and general insurance agencies.

Tower Square Investment Management is wholly owned by Cetera Financial Group, Inc., which is wholly owned by Cetera Financial Holdings, Inc. Cetera Financial Holdings, Inc. is principally owned by RCS Capital Corporation (RCAP). For a more detailed description of RCS Capital, please visit

Tower Square Investment Management provides investment management and advisory services to a number of programs sponsored by affiliated and non-affiliated registered investment advisers. Please ask your investment adviser representative for the Form ADV Part 2A/Appendix 1 they are authorized to offer you.

Nothing in these materials should be construed as offering or disseminating specific investment, tax, or legal advice to any individual without the benefit of direct and specific consultation with an investment adviser representative authorized to offer Tower Square Investment Management services. Information contained herein shall not constitute an offer or a solicitation of any services.

Life and Business Strategies...Start the Journey

CONTACT US: 2700 Via Fortuna Suite 100 • Austin, TX 78746 • (512) 498-7526
Fax (512) 684-8519 •

Investment Advisory services offered through, Waterloo Capital, L.P. a SEC Registered Investment Advisor. Securities offered through Calton & Associates, Inc. Member FINRA/SIPC OSJ 2701 N. Rocky Point Dr., Suite 1000, Tampa, FL 33607 (813) 605-0918 Waterloo Capital, L.P., PlanningWorks, Inc. and Calton & Associates, Inc. are separate entities.

A Registered Representative may only transact business in states where they are registered, or exempt from registration. Currently we have Representatives registered in CA, CO, FL, GA, IL, MN, MO, NE, NM, OH, PA, SC, and TX. If your resident state is not listed, please contact us at Under normal circumstances, securities licensing procedures for additional states may take 24-72 hours. We will not effect or attempt to effect securities transactions, or provide personalized investment advice to, or communicate directly with residents in a state in which a Representative is not registered.


Website Design For Financial Services Professionals | Copyright 2020 All rights reserved