The Week on Wall Street
Daily headlines about the coronavirus had little impact
on stock market averages last week. Earnings and mergers had more influence.
All three
Wall Street benchmarks improved. The Nasdaq Composite rose 2.21%, outpacing the S&P 500, up 1.58%,
and the Dow Jones Industrial Average, up 1.02%. The MSCI EAFE index, which tracks developed overseas
equity markets, added 0.17%.[1][2]
Jerome Powell Testifies on Capitol Hill
Commenting that the economy is in a
"very good place," Federal Reserve Chairman Jerome Powell told congressional legislators that he did
not currently see a significant recession risk.
"There's nothing about this expansion that
is unstable or unsustainable," Powell remarked during his semi-annual report to the House Financial
Services Committee. He did reiterate that the central bank was "carefully" watching the coronavirus
outbreak, and that it could "very likely" have residual economic impact on the U.S.[3]
Yearly Inflation Reaches 2.5%
Consumer prices have not advanced to this degree
since the 12-month period ending in October 2018. Underneath this January headline inflation number,
core inflation (minus food and energy prices, which are often volatile) was up 2.3% year-over-year.
These numbers are from the Consumer Price Index, maintained by the Bureau of Labor
Statistics. The Federal Reserve monitors inflation using its core personal consumption expenditures
(PCE) index, which remains below the central bank's 2% yearly inflation
target.[4]
Gains in Retail Sales, Sentiment
The Census
Bureau said retail sales were up 0.3% in the first month of the year, matching the consensus forecast
of analysts polled by MarketWatch. Additionally, the University of Michigan's preliminary February
consumer sentiment index monitoring consumer confidence factors went back above 100 last week
(100.9).[5]
Final Thought
The S&P 500 has risen more
than 1% since the coronavirus surfaced. During the SARS epidemic of 2003, the MERS outbreak of 2013,
and the 2015-16 Zika virus breakout, the index declined.[6]
THE WEEK
AHEAD: KEY ECONOMIC DATA
Wednesday: The Federal Reserve releases
minutes from its January meeting, and the Census Bureau presents data on January residential
construction activity.
Friday: The National Association of Realtors issues its
latest existing home sales report.
Source: MarketWatch, February 14,
2020
The MarketWatch 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.
THE WEEK AHEAD:
COMPANIES REPORTING EARNINGS
Tuesday: Medtronic (MDT), Walmart
(WMT)
Wednesday: Analog Devices (ADI), NetEase
(NTES)
Thursday: Dominos (DPZ), Hormel Foods (HRL), Southern
(SO)
Friday: Deere & Co. (DE), Royal Bank of Canada
(RY)
Source: Zacks, February 14, 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 advisor 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.