Weekly Market Wrap: Stocks plunged last week as coronavirus worries accelerated and cases spread throughout the world. Markets are panicking but you should not. This will pass!
For The Week
• The S&P 500 dropped 11.49% to 2,954.22
• Oil fell 16.13% to $44.77
• Gold lost 3.67% to $1,583.59
• The US dollar slipped 0.97% at $98.37 against other major world currencies.
2020 Year-To Date for the major indexes:
• The S&P Index -8.56%
• The Dow Jones Index -10.96%
• The NASDAQ Index -4.52%
• The Russell 2000 Small cap Index -11.51%
• EAFE International Index -10.37
• 10 Year Treasury Yield is 1.13%, lower for the week and lower for the year
• 30 Year Treasury Yield is 1.65%, lower for the week and lower for the year
• WTI Crude Oil Index -26.68%
• Bloomberg Gold Index +4.32%
• The Dollar Index +1.94% against other major world currencies
Monday the S&P 500 lost 112 points on heavy volume with no major data reported.
Tuesday stocks dropped another 98 points on heavy volume as consumer confidence fell and missed, FHFA home prices rose while Shiller home prices rose but missed estimates.
Wednesday the S&P 500 fell 12 points on heavy volume as mortgage applications rose while new home sales rose and beat expectations hitting a 12 year high.
Thursday stocks plunged 138 points on heavy volume as jobless claims rose a little more than expected, pending home sales rose and beat, GDP 2nd estimate of the 4th quarter held steady at 2.1% just shy of estimates while durable goods orders fell less than expected.
Friday the markets slipped another 25 points on heavy volume as Midwest manufacturing rose but remained in contraction territory, PCE prices rose less than expected, personal income rose and beat estimates, personal spending rose but missed expectations while consumer sentiment rose and beat.
Mortgage rates also dropped on the week. The national averages as reported by Bankrate.com indicate a 15-year rate of 3.07% and a 30-year rate of 3.62%. These rates are as of 03/02/2020 and may include points.
What to watch for on the economic calendar this week:
Monday – Construction Spending / ISM Manufacturing
Tuesday – February Automobile Sales
Wednesday – Mortgage Applications / ADP Employment / ISM Non-manufacturing
Thursday – Jobless Claims / Factory Orders / Worker Productivity / Unit Labor Costs
Friday – February Employment / Consumer Credit
Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC
March 02, 2020