U.S. Stocks declined last week, while Treasuries gained.
The S&P 500 ended the week slightly down to 2047 and is nearly unchanged year-to-date. Worries about slow global growth continue to weigh on sentiment as first quarter earnings season move into full swing. The lagging Healthcare and Biotech sectors bounced strongly on solid volume, while Financials lost ground. In M&A last week, the large Allergan (AGN)/Pfizer (PFE) inversion deal was struck down by the Treasury Department, while the Department of Justice filed an anti-trust suit for a deal between Baker Hughes (BHI) and Halliburton (HAL). U.S. economic data released included Jobless Claims, which remained at record lows, coming in at 267,000.
Bonds continued to behave well, driven by the belief that interest rates will remain low for longer than thought as 2015 came to an end. High-yield bonds also posted modest gains.