The Markets (as of market close August 14, 2020)
Stocks started the week mostly higher as investors anticipated additional virus stimulus relief. Value stocks, industrials, and energy shares outperformed mega-cap tech stocks last Monday. Of the benchmark indexes listed here, only the Nasdaq lost value. The S&P 500 closed the day 0.3% higher, marking the seventh consecutive day of positive returns. The Dow vaulted 1.3%, followed by the Russell 2000, which gained 1.0%. Treasury yields, crude oil, gold, and the dollar all climbed by the end of trading last Monday.
Tech stocks lost value again last Tuesday, dragging the major indexes down. Sectors including travel, automakers, financials, industrials, and energy posted solid gains. The Nasdaq fell the hardest, losing 1.7% on the day, followed by the S&P 500 (-0.8%), the Russell 2000 (-0.6%), and the Dow (-0.4%). The Global Dow (0.8%) advanced as did the dollar and Treasury yields. Crude oil prices fell by nearly 1.0%.
The S&P 500 continued to push higher last Wednesday, reaching a record high at one point, only to drop back by the end of the day. Nevertheless, large caps fared well as the S&P 500 closed up 1.4% while the Dow finished ahead 1.1%. Tech stocks rebounded, driving the Nasdaq up 2.1%. The small caps of the Russell 2000 closed 0.5% higher, and the Global Dow rose 1.1%.
For the first time in quite a while, weekly unemployment claims were below 1 million. That news wasn’t enough to motivate investors, as stocks tumbled last Thursday. Only the Nasdaq pushed slightly higher, gaining 0.3% on the day. The Dow dropped 0.3%, both the S&P 500 and the Russell 2000 fell 0.2%, and the Global Dow dipped 0.5%. Treasury yields spiked; crude oil and the dollar retreated. Energy, financials, real estate, and industrials had a rough day, while mega-cap and technology stocks fared well.
Equities closed last Friday on a sour note, tainting what was otherwise a solid week in the market. The S&P 500 fell less than 0.1% after nearing a record high during the day. The Dow inched ahead 0.1%, while the Nasdaq, the Russell 2000, and the Global Dow lost value. Utilities and health care led the decline while energy shares advanced. Several European nations and New Zealand have reported spikes in the number of reported virus cases. Investors are getting fewer positive vibes about a new round of
virus-related stimulus coming before the end of the month. It appears that any financial help from Congress will have to wait until September.
Despite last Friday’s downturn, the market enjoyed another positive week of growth. Each of the benchmark indexes listed here posted gains, with the Dow and the Global Dow leading the way. Value stocks and industrials outperformed mega-techs for the week. Treasury yields surged as prices plunged, as consumer prices continued to climb following July gains in the Consumer Price Index, retail sales, and producer prices.
Crude oil prices ended the week at $42.18 per barrel by late Friday afternoon, up from the prior week’s price of $41.45. The price of gold (COMEX) dipped last week after nearly two months of weekly gains. Last Friday saw the price of gold close at $1,954.10, down from the prior week’s price of $2,041.30. The national average retail price for regular gasoline was $2.166 per gallon on August 17, $0.010 lower than the prior week’s price and $0.458 less than a year ago.  For the full article click here:Winthrop Partners Weekly Update 8-17-2020