Category: Weekly Updates

Weekly Updates

Financial News and Portfolio Management Discussion through November 21st

US stocks ticked down over the week as more positive news on the vaccine front was countered with new record virus and hospitalization rates.  The S&P 500 declined 0.8% and the Dow fell 0.7% for the week.  Abroad, the FTSE All World Ex US rose 1.6% for the week.  The yield on the 10-year Treasury fell over the week to end at 0.83% down from 0.89%.

Moderna announced its vaccine trial showed it was 95% effective.

Asia-Pacific countries reached a trade deal including China, Japan, South Korea and 12 other countries that cover roughly a third of global economic output.

New cases and hospitalizations related to COVID-19 hit daily records over the week.

Retail sales rose 0.3% in October, significantly below the gain seen in September.

Initial jobless claims rose to 742,000 for the past week up from 709,000 the week before.

Sales of previously owned homes hit a 14 year high in October and median home prices hit a new high as well.

Treasury Secretary Mnuchin announced he would let several of the Fed’s emergency lending facilities expire at the end of the year, despite the Fed’s objections.

Tesla will be added to the S&P 500 on December 21st.

Financial News and Portfolio Management Discussion through November 14th

Global stocks surged over the week on news of highly effective vaccine results with US stocks ending the week at a new record high.  The S&P 500 rose 2.2% and the Dow surged 4.1% for the week.  Abroad, the FTSE All World Ex US climbed 2.9% for the week.  The yield on the 10-year Treasury rose over the week to end at 0.89%.

Results from a vaccine candidate from Pfizer showed 90% effectiveness, much higher than anticipated.

Coronavirus hospitalizations set a new record on Wednesday, while a record 150,00 new cases were reported on Thursday.

New US jobless claims fell to their lowest level since March at 709,000.

With most S&P 500 companies reporting earnings, analysts project profits fell 7.5% from a year earlier, much better than the expected 21% drop.

Financial News and Portfolio Management Discussion through November 9th

Global stocks surged over the week on relative clarity over US election results.  Stocks posted their best week since April.  The S&P 500 jumped 7.3% and the Dow surged 6.9% for the week.  Abroad, the FTSE All World Ex US soared 7.5% for the week.  The yield on the 10-year Treasury declined to end the week at 0.82%.

US employers added 638,000 jobs in October well surpassing expectations.  The unemployment rate fell to 6.9%, when it was expected to be 7.7%.  New jobless claims fell to 751,000, the lowest level since March, but the pace of declines has significantly leveled off. The labor market has regained over half of the 22 million jobs lost in March and April.

Factory activity expanded at a faster clip than expected in October and posted a sixth month of expansion.

The eurozone Purchasing Managers Index picked up pace in October and hit a 27-month high.

The Fed’s November meeting concluded with no changes in policy.  They still said the coronavirus posed significant risks to the US economy, recommending additional fiscal stimulus, and they maintained their existing monetary stimulus measures.

The Bank of England, Bank of Australia and ECB all announced additional monetary stimulus measures.

Financial News and Portfolio Management Discussion through November 2nd

US stocks posted their worst week since March over concerns of additional lockdowns brought on by rising COVID-19 cases. The S&P 500 declined 5.6% and the Dow ticked dropped 6.5% for the week.  Abroad, the FTSE All World Ex US sank 4.7% for the week.  The yield on the 10-year Treasury edged up for the week to end at 0.86%, and saw its highest one month gain since September 2018.

South Korea’s GDP rose a better than expected 1.9% in the third quarter.  It joins China, Taiwan and Vietnam who have posted growth while countries in the west are still struggling to rebound from COVID-19.

France and Germany instituted new lockdowns as Europe tries to fight off a surge in coronavirus cases.

Weekly jobless claims fell to 751,000, their lowest level since March.

Third quarter US GDP came in at 33.1%, the largest ever quarterly gain as the US economy opened back up after shutdowns limited the economy in the second quarter.  The economy regained roughly two third of what it had lost in the prior quarter.

Personal consumption expenditures rose 1.4% in September and personal income rose 0.9%.

With 64% of S&P 500 companies reporting earnings to date  86% have posted a positive earnings per share surprise and 81% have reported a sportive revenue surprise.

Financial News and Portfolio Management Discussion through October 24th

US stocks fell over the week on concerns about increasing COVID-19 cases as well as diminishing hopes of a new fiscal stimulus deal before the election. The S&P 500 fell 0.5% and the Dow ticked declined 0.9% for the week.  Abroad, the FTSE All World Ex US was up 0.4% for the week.  The yield on the 10-year Treasury climbed over the week to end at 0.84%, the largest one week gain in yield since August.

China posted GDP growth of 4.9% over the third quarter.  Below estimates, however, the Chinese economy remains well ahead of other nations in rebounding from the coronavirus.

Permits for new housing starts rose more than expected in September.

Weekly unemployment claims fell to 787,000 last week, the lowest level since before widespread shutdowns were implemented in the US.

Sales of previously owned homes rose to a 14 year high in September.

The UK announced new support for companies impacted by coronavirus restrictions.

US coronavirus cases hit the highest level since July.

The purchasing managers index for the eurozone fell in October as coronavirus infections have surged.

With over a quarter of companies in the S&P 500 reporting to date, 84% of them have topped analysts’ forecasts for earnings.