Winthrop Partners Economic Update 12-14-2020

The Markets (as of market close December 11, 2020)
The Nasdaq opened the week by reaching a new high last Monday after climbing for the ninth straight day. Otherwise, stocks tumbled, as the rapid rise in COVID-19 cases had investors worried that more restrictions might be forthcoming. The Global Dow and the Dow each fell 0.5%, followed by the S&P 500 (-0.2%) and the Russell 2000 (-0.1%). Communication, technology, and utilities were the only sectors to gain ground. Treasury yields and crude oil prices declined, while the dollar was mostly higher.
Positive news on fiscal stimulus talks and COVID-19 vaccines helped drive stocks higher last Tuesday. The Russell 2000 notched a gain of 1.4% on the day, followed by the Nasdaq (0.5%), the Dow (0.35%), and the S&P 500 (0.3%). The Global Dow fell 0.2%. Crude oil prices and the dollar rose, while Treasury yields sank. Sectors driving the market higher included energy, consumer staples, health care, and materials.
The promising rhetoric on fiscal stimulus that helped drive stocks higher last Tuesday was replaced by an apparent deadlock among lawmakers on Wednesday. Several of the largest tech companies saw their stock plunge following a massive sell-off by investors. The Nasdaq, which fell nearly 2.0%, suffered its worst day in a month. The S&P 500 and the Russell 2000 lost nearly 1.0% on the day, while the Dow dropped 0.4%. The Global Dow avoided a tumble, gaining 0.1%. Treasury bond prices fell driving yields higher. Crude oil prices dipped, while the dollar advanced.
Stocks were mixed last Thursday with the Nasdaq and the Russell 2000 posting gains, while the Dow and the S&P 500 fell. The Global Dow broke even by the end of the day’s trading. A spike in the number of jobless claims didn’t help investor confidence. Among the sectors, energy surged, with financials and information technology eking out minimal gains. Crude oil prices rose, while Treasury yields and the dollar fell.
Equities closed generally lower last Friday with only the Dow posting a modest 0.2% gain. The Global Dow (-0.7%), the Russell 2000 (-0.6%), the Nasdaq (-0.2%), and the S&P 500 (-0.1%) each lost value by the close of Friday’s trading. Crude oil prices and Treasury yields fell, while the dollar was mixed. A few of the market sectors advanced led by communication services (1.2%), consumer staples (0.3%), industrials (0.2%), and utilities (0.2%). Energy and financials fell nearly 1.0%.
Stocks closed generally lower for the week, led by the Global Dow, followed by the S&P 500,
the Nasdaq, and the Dow. The small caps of the Russell 2000 posted a notable gain of more
than 1.0% for the week. Investors got mixed messages on progress toward more fiscal stimulus,
and concerns about the availability of a COVID-19 vaccine weighed on investors. Year to date,
the Nasdaq remains well ahead of last year’s pace, followed by the Russell 2000, the S&P 500,
the Global Dow, and the Dow. Crude oil prices advanced again last week, closing at $46.58 per barrel by late Friday afternoon,
up from the prior week’s price of $46.04 per barrel. The price of gold (COMEX) closed at
$1,842.90 last week, up from the prior week’s price of $1,840.40. The national average retail
price for regular gasoline was $2.156 per gallon on December 7, $0.036 higher than the prior
week’s price but $0.405 less than a year ago. Click here for the entire article:Winthrop Partners Market Update 12-14-2020