The Week on Wall Street
Stocks moved higher last week on news of more Federal
Reserve market support and diminished concerns that new COVID-19 cases might lead to another economic
shutdown.
The Dow Jones Industrial Average rose 1.04%, while the Standard & Poor's 500
gained 1.86%. The Nasdaq Composite Index jumped 3.73% for the week. The MSCI EAFE Index, which tracks
developed overseas stock markets, increased 1.88%.[1][2][3]
Investor Sentiment
News on Monday that the Fed would be expanding its
bond-buying program to include the debt of individual companies sparked a sharp jump in stocks. The
momentum gained through the week as investors focused on positive economic signals, especially with
retail sales. A midweek report of an effective COVID-19 treatment for critically ill patients boosted
investor optimism.
Market sentiment also was helped by talk of more fiscal stimulus and a
report that China would be moving ahead with agricultural purchases to comply with phase one of the
trade deal, easing concerns over growing friction in the U.S.-China
relationship.
Mixed Economic Data
Last week's economic data
illustrated the uneven nature of the nation's nascent economic recovery.
Retail sales,
which were up by 17.7% in May, reflected a strong, encouraging rebound in the U.S. consumer. Consumer
spending was particularly strong in clothing, furniture, sporting goods, and
autos.[4][5]
But industrial production (up by only 1.4%) and new housing starts
(ahead by just 4.3%) showed tepid rebounds, indicating that recovery has yet to reach all corners of
the American economy.Jobless claims posted their best number since mid-March (1.5 million), but
remained high by historical standards.[6][7][8]
Final
Thoughts
Last week saw the flare-up of border tensions in two geopolitical hotspots:
North Korea and the disputed border region between China and India. The hope, of course, is that
escalation can be avoided through diplomacy, but any heightening in tensions may become a concern for
global markets.
THIS WEEK: KEY ECONOMIC
DATA
Monday: Existing Home Sales.
Tuesday: New
Home Sales.
Thursday: Durable Goods Orders. Gross Domestic Product (GDP).
Jobless Claims.
Friday: Consumer Sentiment.
Source: Econoday,
June 19, 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
Wednesday: KB Home
(KBH).
Thursday: Accenture Plc (ACN), Darden Restaurants
(DRI).
Source: Zacks, June 19, 2020
Companies mentioned are for
informational purposes only. It should not be considered a solicitation for the purchase or sale of
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(S&P 500) is an unmanaged group of securities considered to be representative of the stock
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The Dow Jones Industrial Average is a price-weighted average of 30
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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.
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The Wall Street Journal, June 19, 2020
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The Wall Street Journal, June 19, 2020
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The Wall Street Journal, June 19, 2020
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The Wall Street Journal, June 16, 2020
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The Wall Street Journal, June 16, 2020
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MarketWatch, June 16, 2020
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CNBC, June 17, 2020
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The Wall Street Journal, June 18, 2020