The Markets (as of market close November 20, 2020)
Last week began with more good news on another COVID-19 vaccine, sparking a rally in domestic and global stocks. The Dow set a record as it neared the 30,000 mark, with cyclicals and small caps advancing on hopes of a speedier economic recovery. The Russell 2000 and the Global Dow each gained more than 2.0%, while both the Dow and the S&P 500 added more than 1.0%. The Nasdaq advanced 0.8%. Among the market sectors, energy, financials, and industrials surged. Crude oil prices and Treasury yields climbed, while the dollar slipped.
Stocks closed lower last Tuesday, paring record-high gains from the previous day. Only the Russell 2000 (0.4%) and the Global Dow (0.1%) advanced. The Dow (-0.6%), the S&P 500 (-0.5%), and the Nasdaq (-0.2%) lost value. Treasury bond prices climbed, sending yields lower. Crude oil prices rose, while the dollar fell. A surge in COVID-19 cases and hospitalizations overshadowed encouraging vaccine developments. In response to elevated virus numbers, several states imposed new restrictions on gatherings. Federal Reserve Chair Jerome Powell said last Tuesday that the rising number of COVID-19 cases is a big concern, and the economy will need additional fiscal and monetary policy support. Among the major market sectors, only energy and real estate posted gains.
Last Wednesday, new COVID-19-related restrictions aimed at slowing the spread of the virus eclipsed news that progress is speeding up on a vaccine. The Russell 2000 fell 1.3%, followed by the Dow and the S&P 500, each of which dropped 1.2%. The Nasdaq lost 0.8% and the Global Dow dipped 0.5%. Treasury yields and crude oil prices climbed, while the dollar approached its lowest level in nearly two years. Each of the major market sectors lost value, with energy, consumer staples, health care, real estate, and utilities the hardest hit.
Mega-caps and tech shares pushed stocks higher last Thursday, despite rising COVID-19 virus cases here and around the world. Several states and countries have tightened restrictions in response. A report that fiscal stimulus talks would resume may have helped the market as well. Of the indexes listed here, only the Global Dow lost value. The Nasdaq (0.9%), the Russell 2000 (0.8%), the S&P 500 (0.4%), and the Dow (0.2%) each edged higher. Crude oil prices rose, while the dollar and Treasury yields declined.
Stocks were mixed last Friday, with the Global Dow and the Russell 2000 essentially
breaking even, while the Dow, the S&P 500, and the Nasdaq lost value. Investors
weighed reports of an application for emergency approval of a COVID-19 vaccine
against the possibility of further restrictions, shutdowns, and layoffs. Of the major
market sectors, only utilities inched ahead. Information technology, financials, and
industrials lost the most by the end of the day. Crude oil prices rose, Treasury yields fell,
and the dollar was mixed.
By the end of last week, the small caps of the Russell 2000 and the Global Dow posted
notable gains, the Nasdaq inched ahead, while the Dow and the S&P 500 each fell
nearly 0.8%. However, following last week’s performance, the Global Dow has joined
the other benchmark indexes listed here in surpassing their respective 2019 closing
Crude oil prices advanced, closing at $42.17 per barrel by late Friday afternoon, up from
the prior week’s price of $40.20 per barrel. The price of gold (COMEX) slipped again
last week, closing at $1,869.40, down from the prior week’s price of $1,886.70. The
national average retail price for regular gasoline was $2.111 per gallon on November
16, $0.015 greater than the prior week’s price but $0.481 less than a year ago. Click here for the complete report:Winthrop Partners Financial Update 11-23-2020