THE WEEK ON WALL STREET
Traders paid close attention to coronavirus developments and earnings last week, while wondering how the former might eventually impact the latter. Concern over updated infection numbers moderated risk appetite.
A pair of key stock benchmarks posted similar weekly losses. In New York, the S&P 500 declined 1.25%; the MSCI EAFE index (of developed stock markets away from North America) lost 1.24%. The Dow Jones Industrial Average retreated 1.38% for the four-day trading week; the Nasdaq Composite, 1.59%.1,2
Minutes from the Federal Reserve’s January Meeting
Last month, members of the Federal Open Market Committee felt the near-term outlook for the economy had improved slightly since the last Fed meeting in December. The minutes did note that the COVID-19 coronavirus outbreak “warranted close watching.”
Some analysts have wondered, if the coronavirus threat heightens, whether the Fed might cut short-term interest rates this year. The FOMC voted 11-0 in January to leave rates alone.3
Fewer Home Sales, But More Building Permits
Sales of existing homes weakened 1.3% in January, according to a new National Association of Realtors report. On the new home front, the Census Bureau said that the rate of permits for new residential construction neared a 13-year high last month.4,5
FINAL THOUGHT
At Friday’s closing bell, gold was worth $1,646.60 on the New York Mercantile Exchange. Gold futures traded at a seven-year peak on Friday morning.4
T I P O F T H E W E E K
Think about taking an inventory all of your assets this year. This can be useful not only for insurance purposes, but also for an estate strategy.
THE WEEK AHEAD: KEY ECONOMIC DATA
Tuesday: The Conference Board’s monthly Consumer Confidence Index.
Wednesday: A January new home buying report from the Census Bureau.
Thursday: The second estimate of fourth-quarter economic growth from the Bureau of Economic Analysis.
Friday: January consumer spending numbers from the Department of Commerce, and the final February Consumer Sentiment Index from the University of Michigan (an assessment of consumer confidence levels).
Source: MarketWatch, February 21, 2020
The MarketWatch 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.
THE WEEK AHEAD: COMPANIES REPORTING EARNINGS
Monday: HP (HPQ), Intuit (INTU), Palo Alto Networks (PANW)
Tuesday: Home Depot (HD), Public Storage (PSA), Salesforce (CRM)
Wednesday: Booking Holdings (BKNG), Lowe’s (LOW), TJX Companies (TJX)
Thursday: Anheuser-Busch Inbev (BUD), Baidu (BIDU), Best Buy (BBY), Dell Technologies (DELL)
Friday: Dollar Tree (DLTR)
Source: MarketWatch, Market Insider, February 21, 2020
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Any investment should be consistent with your objectives, time frame, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
Q U O T E O F T H E W E E K
“Faith is taking the first step, even when you don’t see the whole staircase.”
DR. MARTIN LUTHER KING, JR.
T H E W E E K L Y R I D D L E
Touching me is inevitable. I can send chills down spines. Even so, you may welcome me. What am I?
LAST WEEK’S RIDDLE: Four women sit down to play, playing after the end of the day, playing for cash, not for fun, a separate score for everyone. Not one lost, and all gained. Now that you’ve heard this, can you explain… what they did, and why it happened this way?
ANSWER: The four women were professional musicians, who were paid to perform.
CITATIONS:
1 – wsj.com/market-data [2/21/20]
2 – quotes.wsj.com/index/XX/MSCI%20GLOBAL/990300/historical-prices [2/21/20]
3 – reuters.com/article/us-usa-fed-minutes/fed-policymakers-cautiously-optimistic-on-u-s-economy-despite-new-risks-minutes-show-idUSKBN20D2K3 [2/19/20]
4 – tinyurl.com/w6an89m [2/21/20]
5 – marketwatch.com/story/housing-starts-dip-36-in-january-but-permits-hit-13-year-high-2020-02-19 [2/19/20]
CHART CITATIONS:
wsj.com/market-data [2/21/20]
quotes.wsj.com/index/XX/MSCI%20GLOBAL/990300/historical-prices [2/21/20]
quotes.wsj.com/index/SPX/historical-prices [2/21/20]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldAll [2/21/20]
This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This material was prepared by MarketingLibrary.Net Inc., for Mark Lund, Mark is known as a Wealth Advisor, The 401k Advisor, Investor Coach, Financial Advisor, Financial Planner, Investment Advisor and author of The Effective Investor. Mark offers investment advisory services through Stonecreek Wealth Advisors, Inc. a fiduciary, independent, fee-only, Registered Investment Advisor firm providing investment and retirement planning for individuals and 401k consulting for small businesses. Mark’s newsletter is called The Fiduciary Report. Cities served in Utah are: Salt Lake County, Park City, Salt Lake City, Murray, West Jordan, Sandy Utah, Draper, South Jordan, Provo, Orem, Lehi, Highland, Alpine, American Fork, and Utah County.
