The Week on Wall Street
Stock prices bounced around last week as investors
reacted to wild swings in the price of oil and reports that called into question the efficacy of two
potential virus treatments.
The Dow Jones Industrial Average retreated 1.93%, while the
Standard & Poor's 500 lost 1.32%. The Nasdaq Composite Index slipped 0.18%. The MSCI EAFE Index,
which tracks developed overseas stock markets, declined 1.21%.[1][2][3]
Oil Wavers, Promising Virus Treatments Disappoint
Stocks opened the new week
lower on the heels of a plunge in oil prices that saw the May oil futures contract fall into negative
territory. While negative prices were largely reflective of technical issues associated with trading
the contracts rather than the actual price of oil, the unprecedented move unsettled investors.
Stocks found some positive momentum as the week wore on, buoyed by corporate earnings
reports that showed solid performance amid a challenging environment.
On two separate days,
however, solid moves to the upside were derailed by disappointing news on promising COVID-19
treatments. One drug failed to produce positive results in its first trial, followed the next day by
an FDA warning against taking chloroquine and hydroxychloroquine to treat COVID-19. Stocks managed to
rally and trim the week's losses during the market's final hours on Friday.
The
Economic Reopening Begins
States across the nation, including Georgia, Tennessee,
South Carolina, and Texas, have begun the process of slowly reopening commerce, while Montana's
governor announced the first phase of restarting its economy.[4][5]
Each state
is taking a different approach, potentially serving as a laboratory to help guide other states in
their efforts to reopen businesses. From the market's perspective, these early steps are not only
hopeful signs that the journey to normalization may have begun, but they may provide important clues
to how quickly business activity can rebound and the degree to which individuals resume social
engagement - two important metrics that may influence the market in the weeks
ahead.
THIS WEEK: KEY ECONOMIC DATA
Wednesday: Gross
Domestic Product (GDP). Federal Open Market Committee (FOMC) Meeting Announcement.
Thursday: Jobless Claims.
Friday: Purchasing Managers
Index (PMI): Manufacturing Index. Institute for Supply Management (ISM) Manufacturing
Index.
Source: Econoday, April 24, 2020
The Econoday economic calendar
lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve
policy meetings, and speaking engagements of Federal Reserve officials. The content is developed
from sources believed to be providing accurate information. The forecasts or forward-looking
statements are based on assumptions and may not materialize. The forecasts also are subject to
revision.
THIS WEEK: COMPANIES REPORTING
EARNINGS
Tuesday: Advanced Micro Devices (AMD), Ford Motor Company
(F), Pfizer (PFE), Caterpillar (CAT), Starbucks (SBUX), Merck & Co. (MRK), United Parcel Service
(UPS), D.R. Horton (DHI)
Wednesday: Microsoft (MSFT), Facebook (FB), Boeing
(BA), Tesla (TSLA), Qualcomm (QCOM)
Thursday: Apple (AAPL), Amazon (AMZN), Visa
(V), McDonald's (MCD), Gilead Sciences (GILD)
Friday: Exxon Mobil (XOM), Chevron
(CVX), Clorox (CLX), Abbvie (ABBV)
Source: Zacks, April 24,
2020
Companies mentioned are for informational purposes only. It should not be
considered a solicitation for the purchase or sale of the securities. Any investment should be
consistent with your objectives, time frame and risk tolerance. The return and principal value of
investments will fluctuate as market conditions change. When sold, investments may be worth more or
less than their original cost. Companies may reschedule when they report earnings without
notice.
Investing involves risk including the potential loss of principal. No investment strategy can
guarantee a profit or protect against loss in periods of declining values.
Diversification does not guarantee profit nor is it guaranteed to protect assets.
International investing involves special risks such as currency fluctuation and political
instability and may not be suitable for all investors.
The Standard & Poor's 500
(S&P 500) is an unmanaged group of securities considered to be representative of the stock
market in general.
The Dow Jones Industrial Average is a price-weighted average of 30
significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by
Charles Dow back in 1896.
The Nasdaq Composite is an index of the common stocks and
similar securities listed on the NASDAQ stock market and is considered a broad indicator of the
performance of stocks of technology companies and growth companies.
The MSCI EAFE Index
was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the
performance in major international equity markets as represented by 21 major MSCI indices from
Europe, Australia, and Southeast Asia.
The 10-year Treasury Note represents debt owed by
the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower,
investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Opinions expressed are subject to change without notice and are not intended as investment advice or
to predict future performance.
Past performance does not guarantee future
results.
You cannot invest directly in an index.
Consult your financial
professional before making any investment decision.
Fixed income investments are subject
to various risks including changes in interest rates, credit quality, inflation risk, market
valuations, prepayments, corporate events, tax ramifications and other factors.
These
are the views of Platinum Advisor Strategies, LLC, and not necessarily those of the named
representative, Broker dealer or Investment Advisor and should not be construed as investment
advice. Neither the named representative nor the named Broker dealer or Investment Advisor gives tax
or legal advice. All information is believed to be from reliable sources; however, we make no
representation as to its completeness or accuracy. Please consult your financial professional for
further information.
By clicking on these links, you will leave our server, as the links
are located on another server. We have not independently verified the information available through
this link. The link is provided to you as a matter of interest. Please click on the links below to
leave and proceed to the selected site.
-
The Wall Street Journal, April 24, 2020. The market indexes discussed are unmanaged and generally considered representative of their respective markets. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
-
The Wall Street Journal, April 24, 2020. The market indexes discussed are unmanaged and generally considered representative of their respective markets. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
-
The Wall Street Journal, April 24, 2020
-
U.S. News & World Report, April 21, 2020
-
U.S. News & World Report, April 22, 2020