The Week on Wall Street
Stock prices drifted higher in an otherwise quiet news
week, as a slowdown in new COVID-19 cases outweighed a Congressional impasse on a new fiscal-spending
measure. The Dow Jones Industrial Average gained 1.81%, while the Standard & Poor's 500 rose by
0.64%. The Nasdaq Composite Index inched 0.08% higher for the week. The MSCI EAFE Index, which tracks
developed stock markets overseas, advanced 3.11%.[1][2][3]
S&P 500 Nears All-Time High
Stocks prices were
supported by a falling rate of COVID-19 cases nationwide and optimism that - despite a lack of
progress on a fiscal-aid bill - Congress would eventually come to a spending
agreement.[4]
The industrial and financial sectors saw solid gains, while
technology stocks, after slipping earlier in the week, found some footing as the week came to a
close.
The S&P 500 Index flirted all week with setting a new record high. At one point
on Thursday, it traded above its February 2020 record close before closing slightly lower. Stocks
treaded water into Friday, as Congress recessed for the
summer.[5]
Consumer Prices Jump
On Wednesday, the Labor
Department said that the Consumer Price Index rose 0.6% in July, matching the 0.6% increase in June.
The increase was double the consensus estimate of 0.3%. The general view is that the acceleration in
consumer prices is more indicative of a healing economy than the beginning of a cycle of higher
inflation.[6][7]
The Fed does not appear concerned about these recent monthly
price jumps. It remains more worried about disinflation. However, if inflation continues to pick up,
the Fed may be forced to reconsider its COVID-19 monetary
policy.[8]
THIS WEEK: KEY ECONOMIC
DATA
Tuesday: Housing Starts.
Wednesday:
Federal Open Market Committee (FOMC) Minutes.
Thursday: Jobless Claims. Index of
Leading Economic Indicators.
Friday: Existing Home
Sales.
Source: Econoday, August 14, 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
Monday: JD.com (JD).
Tuesday: Walmart
(WMT), The Home Depot (HD), Kohls (KSS).
Wednesday: Nvidia (NVDA), Target (TGT),
Lowe's (LOW).
Thursday: Alibaba Group (BABA).
Friday: John
Deere (DE).
Source: Zacks, August 14, 2020
Companies mentioned are for
informational purposes only. It should not be considered a solicitation for the purchase or sale of
the securities. Investing involves risks, and investment decisions should be based on your own
goals, time horizon, and tolerance for risk. 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.
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, August 14, 2020
-
The Wall Street Journal, August 14, 2020
-
The Wall Street Journal, August 14, 2020
-
CNBC, August 12, 2020
-
CNBC, August 13, 2020
-
The Wall Street Journal, August 12, 2020
-
The Wall Street Journal, August 12, 2020
-
CNBC, August 12, 2020