The Week on Wall Street
News of a COVID-19 vaccine ignited a rally in
economically sensitive stocks and a broad retreat in technology companies last week, though enthusiasm
was tempered by reports of rising new infections and fresh lockdowns.
The Dow Jones Industrial Average surged 4.08%, while the Standard & Poor’s 500 rose 2.16%.
The Nasdaq Composite index fell 0.55% for the week. The MSCI EAFE index, which tracks developed
overseas stock markets, jumped 4.01%.[1][2][3]
Vaccine Hopes
Reports of an effective COVID-19 vaccine sent stocks soaring on
Monday as the end to economic uncertainty appeared to be in sight. Stocks that had been pummeled by
economic lockdowns surged on the news, while the stay-at-home stocks suffered steep declines. Bond
yields and oil prices both moved higher on expectations of increased economic activity.
Market enthusiasm evaporated in the days that followed, however, as higher COVID-19 infections, new lockdowns, and low expectations for a new fiscal stimulus package dampened the optimism brought on by the pending vaccine.
Stocks closed the week on a higher note, with cyclical stocks adding to their gains and technology companies shaving part of their losses.
Clouds Over Chinese Capitalism?
The market was caught by surprise last week
when Chinese regulatory authorities issued draft guidelines to address concerns over abusive
monopolistic practices. Shares in some of the biggest Chinese technology companies dropped on the
news. This follows the prior week’s suspension of a listing of a large initial public offering
for one of the country’s leading fintech companies.
It’s difficult to say whether Chinese regulators are acting on concerns that western nations have with the dominance of Big Tech companies, or if they are attempting to rein in the power and influence of privately owned corporations. An answer may not be clear anytime soon, but investors will be watching.
THIS WEEK: KEY ECONOMIC DATA
Tuesday: Retail
Sales.
Wednesday: Housing Starts.
Thursday: Existing Home
Sales, Jobless Claims, Index of Leading Economic Indicators.
Source: Econoday, November 13, 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: Palo Alto
Networks (PANW), Tyson Foods, Inc. (TSN), JD.com, Inc. (JD)
Tuesday: Walmart
(WMT), The Home Depot (HD)
Wednesday: Nvidia Corp. (NVDA), Target Corp. (TGT),
Lowe’s Companies (LOW), The TJX Companies (TJX)
Thursday: Workday, Inc.
(WDAY), Ross Stores (ROST), Intuit (INTU), Netease, Inc. (NTES)
Source: Zacks, November 13, 2020
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- The Wall Street Journal, November 13, 2020
- The Wall Street Journal, November 13, 2020
- The Wall Street Journal, November 13, 2020