This Week in Review 9/21/2020
What you get by achieving your goals is not as important as what you become by achieving your goals. ~ Zig Ziglar
The week started on a rather bullish note, with the market rebounding from back-to-back weekly declines, but general weakness returned on Wednesday after the FOMC policy decision.
The Fed did exactly as expected, so one can't really blame the central bank this week.
Briefly, the Fed kept rates unchanged and signaled they will remain near zero through 2023. Stocks recorded a third weekly loss amid uncertainty over the possibility of another round of stimulus. Just like the previous week, big tech led the decline and looks weak again this morning.
|
Index |
Started Week |
Ended Week |
Change |
% Change |
YTD % |
|
DJIA |
27665.6 |
27657.42 |
-8.22 |
0 |
-3.1 |
|
Nasdaq |
10853.6 |
10793.28 |
-60.27 |
-0.6 |
20.3 |
|
S&P 500 |
3340.97 |
3319.47 |
-21.5 |
-0.6 |
2.7 |
|
Russell 2000 |
1497.27 |
1536.78 |
39.51 |
2.6 |
-7.9 |
The Dow Jones Industrial Average held well, slipping less than 0.1% on the week to close at 27,657.42.
The S&P 500 ended the week at 3,319.47, down 0.6%. This level is important from a technical standpoint because the broad index is now below its 50-day moving average.
The NASDAQ finished the week 0.6% lower to end at 10,793.28. This is the longest weekly losing streak for the tech-heavy index since August of 2019. (Source: Reuters)
The Russell actually managed a gain… up 2.6% but still down 7.9% YTD.
2020 has been a year of change and uncertainty… two things the markets truly despise.
Market Update…
- Oil Prices - West Texas Intermediate crude futures finished at $40.88 a barrel. WTI posted a solid week as OPEC reiterated the importance of complying with output cuts.
- Gold - Gold advanced on the week and closed at $1,962.10 an ounce.
- U.S. Dollar - U.S. dollar was little changed on the week.
- U.S. Treasury Rates - The yield on the benchmark 10-year Treasury finished the week a bit higher at 0.69%.
- Asian shares were mostly lower in overnight trading.
- European markets are trading in the red.
- Domestic markets are down sharply this afternoon.
The big news on this week's economic calendar will be the joint appearances of Chairman Powell and Treasury Secretary Mnuchin before Congress. The need for additional stimulus should be the theme for these discussions… as we know, Congress is still a great deal apart on a stimulus package.
We will also get some important updates on the housing market for both existing and new home sales. Additionally, manufacturing PMI will be released Wednesday and durable goods are reported Friday.
Obviously, the election rhetoric and daily COVID-19 numbers will continue to weigh heavily on the markets for the foreseeable future.
Stay healthy and have a great week!
