Winthrop Partners Weekly Update 9-21-2020

The Markets (as of market close September 18, 2020)
Stocks rebounded to begin last week on a positive note, as each of the benchmark
indexes listed here posted notable gains by the close of trading last Monday. Tech
stocks surged, pushing the Nasdaq up 1.9%. Hopes for a COVID-19 vaccine moved
pharmaceutical shares higher. Energy shares fell as crude oil prices dropped. The dollar
declined, while Treasury yields moved slightly higher.
Last Tuesday saw stocks post their second consecutive session of gains. Tech stocks
and mega-caps continued to rebound. Other than the Dow, which was flat, each of the
benchmark indexes listed here posted gains, led by the Nasdaq (1.2%), followed by the
S&P 500 (0.5%), the Russell 2000, and the Global Dow, each of which gained 0.8%.
Crude oil prices and Treasury yields rose, and the dollar was mixed against a basket of
currencies.
Stocks were mixed last Wednesday, with the Dow, the Russell 2000, and the Global
Dow posting modest gains, while the S&P 500 and the Nasdaq fell. Mega-caps and tech
stocks reversed course from the prior few days and sank. Energy shares rose, boosted
by advancing oil prices. Value stocks performed better along with financial shares.
Treasury yields, the dollar, and crude oil prices each rose.
Last Thursday, each of the benchmark indexes gave back any gains from earlier in the
week. Word that Congress and the president may be nearing an accord on a new round
of stimulus wasn’t enough to keep money from flowing out of the market. Investors may
have been perplexed by the confusing government rhetoric on when a COVID-19
vaccine would be available. Tech stocks and mega-caps took a big hit, pulling stock
indexes lower. The Nasdaq lost 1.3%, the S&P 500 fell 0.8%, both the Russell 2000 and
the Global Dow dropped 0.6%, and the Dow declined 0.5%. Treasury yields and the
dollar fell, while crude oil prices rose.
Tech stocks and mega-caps continued to slide last Friday. Each of the benchmark
indexes listed here lost value by the end of the day, with the S&P 500 and the Nasdaq
each falling 1.1%, closely followed by the Dow (-0.9%), the Global Dow (-0.7%), and the
Russell 2000 (-0.4%). Treasury yields advanced, crude oil prices fell, and the dollar
rose.
Overall, stocks lost value for the week. Mixed signals from the federal government as to
whether and when a virus vaccine would be available, coupled with the Federal
Reserve’s somber assessment of the state of the economy, prompted investors to pull
away from equities. Only the small caps of the Russell 2000 gained value last week.
The S&P 500, the Nasdaq, the Dow, and the Global Dow each fell behind. Despite the
past few weeks of downturns, the Nasdaq remains solidly ahead of its year-end value.
The S&P 500 is marginally ahead, while the other indexes listed here remain below their
respective 2019 closing marks.
Crude oil prices rebounded last week, closing at $40.84 per barrel by late Friday
afternoon, up from the prior week’s price of $37.76. The price of gold (COMEX)
advanced last week, closing at $1,958.10, up from the prior week’s price of $1,950.00.
The national average retail price for regular gasoline was $2.183 per gallon on
September 14, $0.028 lower than the prior week’s price but $0.369 less than a year
ago.  Click here for the full report: Winthrop Partners Market Update 9-21-2020