Stocks surged early last Monday only to fall back by the end of the day. Earlier in the day, the S&P 500 reached its highest level since the COVID-19 pandemic sent equities reeling. The Nasdaq hit another record high in early trading. Unfortunately, stocks couldn’t hold their values as states hard-hit by growing numbers of reported virus cases began to rein in reopening measures. European stocks climbed last Monday as did Treasury bond yields. Crude oil prices dipped ahead of an OPEC meeting that could result in plans to ease production cuts.
Equities rebounded last Tuesday as the Dow rose 2.1%, the S&P 500 climbed 1.3%, the Nasdaq advanced 0.9%, and the Russell 2000 gained 1.76%. Treasury yields slid 3.91% while crude oil prices jumped 0.85%. Market sectors advancing last Tuesday included energy, materials, industrials, and consumer staples.
Optimism about progress on a COVID-19 vaccine spurred investors last Wednesday. By the end of the day, the Russell 2000 jumped 3.5%, followed by the Global Dow, which advanced 1.3%. The S&P 500 gained 0.9%, the Dow increased 0.85%, and the Nasdaq rose 0.6%. Crude oil and Treasury yields grew while the dollar fell. Banks led financial stocks higher, and energy stocks also climbed.
A drop in technology shares pulled stocks lower last Thursday, ending a two-day rally. The Nasdaq fell 0.7% as Microsoft, Amazon, and Apple Inc. lost value. The Dow dropped 0.5%, the S&P 500 sank 0.3%, and the Russell 2000 fell 0.7%. Treasury yields declined 2.9%, and crude oil prices decreased 1.2%.
Stocks were mixed last Friday as the S&P 500 and the Nasdaq posted modest gains while the Dow fell for the second consecutive day. Within the S&P 500, the health-care sector soared to a record high. Other sectors advancing last Friday included utilities, real estate, and materials, while financials and energy lagged.
For the week, only the Nasdaq failed to post a gain while each of the other indexes listed here advanced. The S&P 500 gained 1.25% and is less than 0.2 percentage point from its 2019 closing value. For the week, the Russell 2000 led the way, climbing 3.56%, followed by the Dow, which rose nearly 2.30%. The Nasdaq, despite losing a little more than 1.0%, is still more than 17.0% ahead of its 2019 ending mark. Treasury yields ended last week about where they started, while crude oil and gold each closed the week ahead.
Crude oil prices ended the week at $40.58 per barrel by late Friday afternoon, up from the prior week’s price of $40.32. The price of gold (COMEX) advanced for the fifth consecutive week, closing at $1,812.20, up from the prior week’s price of $1,801.40. The national average retail price for regular gasoline was $2.195 per gallon on July 13, $0.018 higher than the prior week’s price but $0.584 less than a year ago.
Market/Index | 2019 Close | Prior Week | As of 7/17 | Weekly Change | YTD Change |
---|---|---|---|---|---|
DJIA | 28,538.44 | 26,075.30 | 26,671.95 | 2.29% | -6.54% |
Nasdaq | 8,972.60 | 10,617.44 | 10,503.19 | -1.08% | 17.06% |
S&P 500 | 3,230.78 | 3,185.04 | 3,224.73 | 1.25% | -0.19% |
Russell 2000 | 1,668.47 | 1,422.68 | 1,473.32 | 3.56% | -11.70% |
Global Dow | 3,251.24 | 2,891.45 | 2,959.80 | 2.36% | -8.96% |
Fed. Funds target rate | 1.50%-1.75% | 0.00%-0.25% | 0.00%-0.25% | 0 bps | -150 bps |
10-year Treasuries | 1.91% | 0.63% | 0.62% | -1 bps | -129 bps |
Chart reflects price changes, not total return. Because it does not include dividends or splits, it should not be used to benchmark performance of specific investments.
The housing market is front and center this week with the latest reports on sales of both existing and new homes. Sales of existing homes are expected to rebound in June from May’s nearly 10% decline. On the other hand, new home sales soared in May and could retreat in June.
Data sources: Economic: Based on data from U.S. Bureau of Labor Statistics (unemployment, inflation); U.S. Department of Commerce (GDP, corporate profits, retail sales, housing); S&P/Case-Shiller 20-City Composite Index (home prices); Institute for Supply Management (manufacturing/services). Performance: Based on data reported in WSJ Market Data Center (indexes); U.S. Treasury (Treasury yields); U.S. Energy Information Administration/Bloomberg.com Market Data (oil spot price, WTI, Cushing, OK); www.goldprice.org (spot gold/silver); Oanda/FX Street (currency exchange rates). News items are based on reports from multiple commonly available international news sources (i.e. wire services) and are independently verified when necessary with secondary sources such as government agencies, corporate press releases, or trade organizations. All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Past performance is no guarantee of future results. All investing involves risk, including the potential loss of principal, and there can be no guarantee that any investing strategy will be successful.
The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 largest, publically traded companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange. The Russell 2000 is a market-cap weighted index composed of 2,000 U.S. small-cap common stocks. The Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide. The U.S. Dollar Index is a geometrically weighted index of the value of the U.S. dollar relative to six foreign currencies. Market indices listed are unmanaged and are not available for direct investment.
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