Financial Market Highlights 02-04-13

Posted February 4, 2013 by rvillareal

First Look at 2013

• Treasury yields higher in January, the 10 year around 2%  
• FOMC statement on January 30, 2012 makes no significant change to its policy settings.
•  Fed continues to commit to low rate until progress toward full employment is clearly evident.
• S&P 500 hits new highs on better data, continued Fed stimulus, and firmer outlook.  [private]
• DE upgrades to Solid Overweight on Equities (75%; 55% neutral).
• S&P Relative Sector Performance: Consumer Discretionary stocks powered higher relative to Staples. Future relative performance however, could be impacted by the increase in payroll taxes.
• High frequency data suggest that China is en-route for recovery, which could influence commodity prices.
• Eurozone recession may be easing. Hope is for some form of revival in activity this year, but only a flat outcome is seen on average in 2013, but with 1% outcome penciled in for 2014. 

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