The Week on Wall Street
Stocks were mixed last week as
worries that stretched from Washington D.C., where prospects of a new fiscal stimulus bill dimmed, to
Europe, which saw an increase of new COVID-19 cases.
The Dow Jones Industrial Average
declined 1.75%, while the Standard & Poor's 500 fell 0.63%. The Nasdaq Composite index gained
1.11% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, slumped
4.20%.[1][2][3]
Late Friday Rally Pares Losses
Dwindling chances of a federal fiscal stimulus,
pre-election jitters, and worries over a second wave of coronavirus infections in Europe weighed
heavily on investors.
The weakness in technology persisted. The Department of Justice
proposal to curb legal protections for internet companies and require them to take greater
responsibility for the content on their sites adding to that sector's
woes.[4]
Energy stocks were also hit hard on concerns of a slowdown in economic
growth hurting oil demand.
The week wasn't entirely absent of good news. Investors focused
on reports of new progress in developing a vaccine and the passage in the House of Representatives of
a bipartisan continuing resolution bill to fund the government through December
11th.[5]
Absent any apparent catalyst, stocks rallied in the final days of the
week, cutting losses on major indices and powering the NASDAQ Composite to a weekly
gain.
Fiscal Stimulus on Life Support
Market hopes for an additional
fiscal stimulus bill, which were already fading, suffered another setback as events in Washington,
D.C., appeared to make it more unlikely that lawmakers and the president could come together to
fashion a compromise spending bill.
Many economists and market observers, along with
Federal Reserve Chairman Jerome Powell, believe that further spending may be needed to maintain the
momentum of the current economic recovery.
THIS WEEK: KEY ECONOMIC
DATA
Tuesday: Consumer Confidence
Index.
Wednesday: ADP (Automated Data Processing) Report. Gross Domestic Product
(GDP).
Thursday: Jobless Claims.
Friday: Employment
Situation. Factory Orders.
Source: Econoday, September 25, 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
Tuesday: Micron Technologies (MU), McCormick
(MKC)
Thursday: Constellation Brands (STZ), PepsiCo (PEP), Conagra Brands
(CAG)
Source: Zacks, September 25, 2020
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- The Wall Street Journal, September 25, 2020
-
The Wall Street Journal, September 25, 2020
-
The Wall Street Journal, September 25, 2020
-
The Wall Street Journal, September 23, 2020
- CNN.com, September 22, 2020