Weekly Market Wrap: Stocks fell for only the second week of the last ten as economic data was mixed, unemployment fell back below 10% and despite the CDC asking states to be prepared to distribute vaccines by November.
For The Week
- The S&P 500 dropped 2.31% to 3,426.96
- Oil fell 7.45% to $39.77
- Gold lost 1.58% to $1,933.98
- The US dollar gained 0.47% at $92.77 against other major world currencies.
2020 Year-To Date for the major indexes:
- The S&P Index +6.07%
- The Dow Jones Index -1.42%
- The NASDAQ Index +26.09%
- The Russell 2000 Small cap Index -7.98%
- EAFE International Index -7.09%
- 10 Year Treasury Yield is 0.72%, lower for the week and lower for the year
- 30 Year Treasury Yield is 1.47%, lower for the week and lower for the year
- WTI Crude Oil Index -34.87%
- Bloomberg Gold Index +27.40%
- The Dollar Index -3.87% against other major world currencies
Monday the S&P 500 slipped 8 points on heavy volume with no major data reported.
Tuesday stocks gained 26 points on moderate volume as construction spending rose but missed while ISM manufacturing rose and beat expectations.
Wednesday the S&P 500 added 54 points on moderate volume as mortgage applications fell, ADP employment rose but missed while factory orders rose and beat estimates.
Thursday stocks dropped 126 points on heavy volume as jobless claims fell more than expected, ISM non-manufacturing rose and beat, worker productivity rose and beat estimates while unit labor costs rose less than expected.
Friday the markets fell 28 points on heavy volume as August added 1.37 million jobs slightly missing estimates, unemployment fell to 8.4% which was better than expected and average hourly earnings rose more than expected.
Mortgage rates were lower last week. The national averages as reported by Bankrate.com indicate a 15-year rate of 2.53% and a 30-year rate of 3.06%. These rates are as of 09/07/2020 and may include points.
What to watch for on the economic calendar this week:
Monday – No major data – Markets closed
Tuesday – Consumer Credit / Small Business Optimism
Wednesday – Mortgage Applications
Thursday – Jobless Claims / Producer Prices
Friday – Consumer Prices
Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC
September 7, 2020
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