The Week on Wall Street
Traders paid close attention to coronavirus
developments and earnings last week, while wondering how the former might eventually impact the
latter. Concern over updated infection numbers moderated risk appetite.
A pair of key stock
benchmarks posted similar weekly losses. In New York, the S&P 500 declined 1.25%; the MSCI EAFE
index (of developed stock markets away from North America) lost 1.24%. The Dow Jones Industrial
Average retreated 1.38% for the four-day trading week; the Nasdaq Composite, 1.59%.[1][2]
Minutes from the Federal Reserve's January Meeting
Last month, members of the
Federal Open Market Committee felt the near-term outlook for the economy had improved slightly since
the last Fed meeting in December. The minutes did note that the COVID-19 coronavirus outbreak
"warranted close watching."
Some analysts have wondered, if the coronavirus threat
heightens whether the Fed might cut short-term interest rates this year. The FOMC voted 11-0 in
January to leave rates alone.[3]
Fewer Home Sales, But More Building Permits
Sales of existing homes weakened
1.3% in January, according to a new National Association of Realtors report. On the new home front,
the Census Bureau said that the rate of permits for new residential construction neared a 13-year high
last month.[4][5]
Final Thought
At Friday's closing bell,
gold was worth $1,646.60 on the New York Mercantile Exchange. Gold futures traded at a seven-year peak
on Friday morning.[6]
THE WEEK AHEAD: KEY ECONOMIC
DATA
Tuesday: The Conference Board's monthly Consumer Confidence
Index.
Wednesday: A January new home buying report from the Census
Bureau.
Thursday: The second estimate of fourth-quarter economic growth from the
Bureau of Economic Analysis.
Friday: January consumer spending numbers from the
Department of Commerce, and the final February Consumer Sentiment Index from the University of
Michigan (an assessment of consumer confidence levels).
Source: MarketWatch, February
21, 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
Monday: HP (HPQ), Intuit
(INTU), Palo Alto Networks (PANW)
Tuesday: Home Depot (HD), Public Storage
(PSA), Salesforce (CRM)
Wednesday: Booking Holdings (BKNG), Lowe's (LOW), TJX
Companies (TJX)
Thursday: Anheuser-Busch Inbev (BUD), Baidu (BIDU), Best Buy
(BBY), Dell Technologies (DELL)
Friday: Dollar Tree
(DLTR)
Source: MarketWatch, Market Insider, February 21,
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.