THE WEEK ON WALL STREET
Stocks traveled a volatile path last week as investors appeared concerned about the upcoming elections, an uncertain economy, and more delays with additional fiscal stimulus.
The Dow Jones Industrial Average slid 1.66%, while the Standard & Poor's 500 slumped 2.51%. The Nasdaq Composite index plummeted 4.06% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, rose 1.44%.1,2,3
Stocks Continue To Slip
In a holiday-shortened week of trading, stocks resumed their slide from the prior week, with the technology-heavy Nasdaq slipping into correction territory in a three-day span ended on Tuesday, September 8th. (A correction is defined as a decline of at least 10% from a recent high.)4
After staging a strong rebound on Wednesday, stocks once again headed lower as the Senate failed to pass another coronavirus stimulus bill. Mega-cap technology companies remained under pressure throughout the week. Energy stocks added to investors woes, plunging on data showing an unexpected build-up in inventories.5
The market ended the week on a mixed note, as technology companies lost additional ground.
On Friday the nation commemorated the tragic events of September 11, 2001.
We join all Americans in remembering the lives we lost that day and the profound impact on the victims' families. We are reminded that it was the unity, kindness, and warmth that we collectively rediscovered in the wake of 9/11 that saw us through that difficult period.
BY THE NUMBER$
NO INFLATION - Inflation in the Eurozone fell 0.2% (i.e. deflation) on a month-over-month basis in August 2020. The last month of deflation in the Eurozone before August occurred in May 2016. The last calendar year in which the US experienced deflation was 1954 or 66 years ago (source: Eurostat, Bureau of Labor Statistics).
YOU WANT A DISCOUNT? - The schools with the 4 largest college endowments in the United States - University of Texas, Harvard, Yale and Stanford - increased the cost of tuition for their undergraduates for the 2020-21 school year (source: MarketWatch).
WHO KNEW? - The CDC estimated on 7/10/20 that 40% of Americans infected with the COVID-19 virus are asymptomatic, i.e., they never experienced symptoms commonly associated with the virus, including fever, chills, cough, shortness of breath, fatigue and body aches (source: Center for Disease Control). 6
THE WEEK AHEAD: KEY ECONOMIC DATA
Tuesday: Industrial Production.
Wednesday: Federal Open Market Committee (FOMC) Announcement.
Thursday: Jobless Claims. Housing Starts.
Friday: Leading Economic Indicators.
Source: Econoday, September 11, 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.
THE WEEK AHEAD: COMPANIES REPORTING EARNINGS
Tuesday: Adobe Systems (ADBE), Lennar Corporation (LEN), Fedex (FDX).
Source: Zacks, September 11, 2020
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. 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.
THE WEEKLY RIDDLE
A plastic bottle filled with cola weighs one liter. What do you need to add to it to make it weigh less than two ounces?
LAST WEEK'S RIDDLE: If it were two hours later than right now, it would be half as long until midnight as it would be if it were an hour later than right now. What time is it?
ANSWER: 9:00 PM.