Happy New Year!

Jan 6, 2014 | Wealth Management

The Markets

Equities rang in the new year by taking a bit of a breather. As investors decided to take some of the profits that the Santa Claus rally had left in their stockings, the Dow lost 135 points on 2014's first trading day, though it regained much of that the following day. The other three domestic indices fared slightly worse, though not as badly as the Global Dow. Meanwhile, gold showed signs of new life after its disastrous 2013, jumping nearly 3% in the first two days of the year.

Market/Index 2013 Close Prior Week As of 1/3 Weekly Change YTD Change
DJIA 16576.66 16478.41 16469.99 -.05% -.64%
Nasdaq 4176.59 4156.59 4131.91 -.59% -1.07%
S&P 500 1848.36 1841.40 1831.37 -.54% -.92%
Russell 2000 1163.64 1161.09 1156.09 -.43% -.65%
Global Dow 2484.10 2476.65 2458.75 -.72% -1.02%
Fed. Funds .25% .25% .25% 0 bps 0 bps
10-year Treasuries 3.04% 3.02% 3.01% -1 bps -3 bps

Chart reflects price changes, not total return. Because it does not include dividends or splits, it should not be used to benchmark performance of specific investments.

Last Week's Headlines

Eye on the Week Ahead

Last week's light trading volumes should be back to normal this week, and those who believe that the first five trading days of January indicate something about equities' subsequent direction during the coming year will have a better basis for making that assessment. Friday's jobs numbers will be of interest, as always, as will the minutes of the meeting at which the Fed's monetary policy committee decided to start tapering.

Data sources: Economic: Based on data from U.S. Bureau of Labor Statistics (unemployment, inflation); U.S. Department of Commerce (GDP, corporate profits, retail sales, housing); S&P/Case-Shiller 20-City Composite Index (home prices); Institute for Supply Management (manufacturing/services). Performance: Based on data reported in WSJ Market Data Center (indexes); U.S. Treasury (Treasury yields); U.S. Energy Information Administration/Bloomberg.com Market Data (oil spot price, WTI Cushing, OK); www.goldprices.org (spot gold/silver); Oanda/FX Street (currency exchange rates). All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Past performance is no guarantee of future results.

The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange. The Russell 2000 is a market-cap weighted index composed of 2,000 U.S. small-cap common stocks. The Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide. Market indices listed are unmanaged and are not available for direct investment.

While believed to be accurate and from sources deemed to be reliable, the presented information is general in nature. It is not intended to provide, and should not be relied on for, accounting, investment, legal or tax advice. Consult the appropriate professional advisor for more complete and current information. Investors should consider their individual financial circumstances and the inherent risks of investing with their investment advisor. Services provided by Wealth Management at Bank of the Bluegrass & Trust Co.: Are not FDIC insured*Are not bank guaranteed*May lose value*Are not guaranteed by any state or government agency.
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2014

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