AAM Weekly Market Wrap – October 5, 2020

Weekly Market Wrap: Stocks rose last week on mostly positive economic data and despite some increasing Covid cases in the West and Midwest US.

For The Week

  • The S&P 500 gained 1.51% to 3,348.42
  • Oil dropped 7.95% to $37.05
  • Gold gained 2.15% to $1,902.64
  • The US dollar slipped 0.78% at $93.85 against other major world currencies.

2020 Year-To Date for the major indexes:

  • The S&P Index +3.64%
  • The Dow Jones Index -3.00%
  • The NASDAQ Index +23.43%
  • The Russell 2000 Small cap Index -7.74%
  • EAFE International Index -7.99%
  • 10 Year Treasury Yield is 0.69%, higher for the week and lower for the year
  • 30 Year Treasury Yield is 1.48%, higher for the week and lower for the year
  • WTI Crude Oil Index -39.32%
  • Bloomberg Gold Index +25.34%
  • The Dollar Index -2.75% against other major world currencies

Monday the S&P jumped 53 points on moderate volume with no major data reported.

Tuesday stocks lost 16 points on moderate volume as consumer confidence rose and beat while Shiller home prices rose and matched expectations.

Wednesday the S&P 500 rebounded 28 points on heavy volume as mortgage applications fell, ADP employment rose and beat, pending home sales rose and beat estimates, 2nd quarter GDP final estimate at -31.4% slightly beating expectations and Chicago manufacturing rose and beat estimates.

Thursday stocks added 18 points on heavy volume as jobless claims fell and beat, continuing claims continued lower, construction spending rose and beat estimates, ISM manufacturing fell and missed expectations, PCE prices rose and matched, personal income fell more than expected while personal spending rose and beat.

Friday the markets dropped 32 points on moderately heavy volume as September added 877,000 jobs and beat expectations, unemployment fell to 7.9% also beating estimates, average hourly earnings rose but missed, factory orders rose but missed estimates while consumer sentiment rose and beat expectations.

Mortgage rates were mixed last week. The national averages as reported by Bankrate.com indicate a 15-year rate of 2.56% and a 30-year rate of 3.05%. These rates are as of 10/5/2020 and may include points.

What to watch for on the economic calendar this week:

Monday – ISM Non-Manufacturing

Tuesday – No major data

Wednesday – Mortgage Applications / FOMC Minutes / Consumer Credit

Thursday – Jobless Claims / Small Business Optimism

Friday – No major data

Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC

October 5, 2020                               

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Advanced Asset Management
4555 Wilson Ave SW, Suite 2
Grandville, MI 49418

Phone: (616) 531-5220