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Weekly Recap | May 30, 2023

Weekly Recap | May 30, 2023

| May 31, 2023
Weekly Recap

May 22-26, 2023 Recap

S&P 500 Snaps Two-Week Losing Streak

Nasdaq Jumps Over Two Percent
The major U.S. equity indices ended mixed last week amidst favorable prospects for a debt-ceiling deal to be reached over the weekend. The week was also characterized by mostly improving economic datapoints that improved soft-landing views to possibly avoid a 2023 recession. While the S&P 500 was only fractionally higher on the week, Nasdaq stocks strongly advanced, largely driven by AI (artificial intelligence) optimism.

For the Week…
The S&P 500 gained 0.35%, the Dow Jones Industrial Average fell 1.00% and the tech-heavy Nasdaq Composite jumped 2.52%. By market capitalization, large caps outperformed, while mid caps
(-1.03%) and small caps (-0.02%) declined.

Durable Goods Orders Surprise Higher
Orders for durable goods designed to last at least three years increased 1.1% last month, widely topping forecasts for a 1% decline. The April increase follows a 3.3% surge in March and marks two consecutive months of growth. However, core durable goods that excludes transportation, slipped 0.2% (0.0% forecast).

Technology Extends Leadership
Eight of the 11 major sectors ended negative for a second week, with Consumer Staples (-3.21%), Materials (-3.06%), and Healthcare
(-2.86%) falling the most. Technology was the standout performer, surging 5.12%, with Communication Services and Consumer Discretionary trailing with smaller gains (+1.21% and +0.37% respectively). Technology (+34.57%) and Communication Services (+32.98%) are this year’s top performing sectors.

Treasury Yields March Higher
Treasury yields advanced last week amid concerns whether a debt ceiling agreement could be in place before the revised June 5 X-date when the Treasury Department runs out of funds to pay its bills. The yield on benchmark 10-year Treasury notes eased 0.07% on Friday but advanced over 0.34% for the week, finishing at 3.804%. Intra-week, the yield on policy-sensitive two-year Treasury notes climbed above 4.60% for the first time since March. Yields and prices move in opposite directions. 

The Latest from @CeteraIM

Inflation-Adjusted Consumer Spending Up 2.3% from a Year Ago

Bond Yields Jumped on Debt Ceiling Uncertainty

S&P 500 P/E Premium Over Small Cap Disconnect  

Economic Calendar

Monday, May 29
Markets Closed for Memorial Day Observation.

Tuesday, May 30
S&P/Case-Shiller Home Price Index, Consumer Confidence, Dallas Fed Index.

Wednesday, May 31
Chicago PMI, Job Openings.

Thursday, June 1
ADP Employment Survey, Challenger Layoffs, Jobless Claims, ISM Manufacturing PMI.

Friday, June 2
Nonfarm Payrolls, Unemployment Rate.

Consumer spending growth is currently much stronger for services than goods. It was a different story following the pandemic recession when spending on goods soared. Services spending is up 8.4% Y/Y, while goods spending is up 3.6% Y/Y. Adjusted for inflation, personal consumption expenditures are up 2.3% Y/Y. Consumer spending growth remains healthy.

This report is created by Cetera Investment Management LLC. For more insights and information from the team, follow @CeteraIM on Twitter.

About Cetera® Investment Management
Cetera Investment Management LLC is an SEC registered investment adviser owned by Cetera Financial Group®. Cetera Investment Management provides market perspectives, portfolio guidance, model management, and other investment advice to its affiliated broker-dealers, dually registered broker-dealers and registered investment advisers.

About Cetera Financial Group
“Cetera Financial Group” refers to the network of independent retail firms encompassing, among others, Cetera Advisors LLC, Cetera Advisor Networks LLC, Cetera Investment Services LLC (marketed as Cetera Financial Institutions or Cetera Investors), and Cetera Financial Specialists LLC. All firms are members FINRA / SIPC. Located at 655 W. Broadway, 11th Floor, San Diego, CA  92101.

Individuals affiliated with Cetera firms are either Registered Representatives who offer only brokerage services and receive transaction-based compensation (commissions), Investment Adviser Representatives who offer only investment advisory services and receive fees based on assets, or both Registered Representatives and Investment Adviser Representatives, who can offer both types of services.

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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. Investors cannot directly invest in unmanaged indices. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability, and differences in accounting standards.


The Dow Jones Industrial Average 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 NASDAQ Composite Index includes all domestic and international based common type stocks listed on The NASDAQ Stock Market. The NASDAQ Composite Index is a broad based index

The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe and is a subset of the Russell 3000 Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.

The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.

The Russell Midcap Index measures the performance of the mid-cap segment of the U.S. equity universe and is a subset of the Russell 1000 Index. It includes approximately 800 of the smallest securities based on a combination of their market cap and current index membership.

The Bloomberg US Aggregate Bond Index, which was originally called the Lehman Aggregate Bond Index, is a broad based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government–related and corporate debt securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS and CMBS (agency and non-agency) debt securities that are rated at least Baa3 by Moody’s and BBB- by S&P. Taxable municipals, including Build America bonds and a small amount of foreign bonds traded in U.S. markets are also included. Eligible bonds must have at least one year until final maturity, but in practice the index holdings have a fluctuating average life of around 8.25 years.

The Bloomberg US Corporate High Yield Index measures the USD-denominated, non-investment grade, fixed-rate, taxable corporate bond market. Securities are classified as high yield if the middle rating of Moody's, Fitch, and S&P is Ba1/BB+/BB+ or below, excluding emerging market debt. Payment-in-kind and bonds with predetermined step-up coupon provisions are also included. Eligible securities must have at least one year until final maturity, but in practice the index holdings has a fluctuating average life of around 6.3 years.

The Bloomberg US Municipal Bond Index covers the USD-denominated long-term tax exempt bond market. The index has four main sectors: state and local general obligation bonds, revenue bonds, insured bonds, and prerefunded bonds. Eligible securities must be rated investment grade (Baa3/BBB- or higher) by Moody’s and S&P and have at least one year until final maturity.

The MSCI EAFE Index is designed to measure the equity market performance of developed markets (Europe, Australasia, Far East) excluding the U.S. and Canada. The Index is market-capitalization weighted.

The MSCI Emerging Markets Index is designed to measure equity market performance in global emerging markets. It is a float-adjusted market capitalization index.

The Bloomberg Commodity Index is a broadly diversified index that measures 22 exchange-traded futures on physical commodities in five groups (energy, agriculture, industrial metals, precious metals, and livestock), which are weighted to account for economic significance and market liquidity. No single commodity can comprise less than 2% or more than 15% of the index; and no group can represent more than 33% of the index.

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

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 futures market.

The U.S. Dollar Index is a weighted geometric mean that provides a value measure of the United States dollar relative to a basket of major foreign currencies. The index, often carrying a USDX or DXY moniker, started in March 1973, beginning with a value of the U.S. Dollar Index at 100.000.