August 10 – August 14 Week in Review

It was another positive week for the stock market last week, and almost a record setting one for the S&P 500. The benchmark index gained 0.6% last week and nearly closed at a record high twice. The Dow Jones Industrial Average was the top performer with a 1.8% gain, reflecting the strength in cyclical and value stocks. The Russell 2000 increased 0.6%, and the Nasdaq Composite increased 0.1%.

With the majority of Q2 earnings now behind them, investors looked to economic data for the latest indications on the direction and strength of the economy, which remained mostly positive.

Commentary 08.17.20

Weekly initial jobless claims decreased by 228,000 to 963,000, which was the first time since March that claims checked in below one million. In other economic news retail sales increased 1.2% in July, and Q2 preliminary labor productivity climbed 7.3%.

Cyclical sectors took last week’s data in stride. The industrials, energy, consumer discretionary, materials, and financial sectors advanced the most. The utilities, real estate, and communication services sectors were the only sectors that closed lower.

There were no coronavirus relief talks last week, but that didn't deter trading sentiment. The Senate adjourned for August recess until after Labor Day, and House Speaker Pelosi said she will only resume talks with White House officials if they are willing to agree to at least a $2 trillion deal.

Elsewhere thousands of Iowans are still coping with the aftermath of a storm that pummeled the state last week with 100-mile-per-hour winds — a storm that flattened corn and soybean crops, damaged grain elevators and leveled banks, churches and homes. More than 158,000 Iowans were still without power as of Friday evening, according to Iowa Public Radio.

In the bond market the U.S. Treasury curve steepened noticeably last week amid a selloff in longer dated maturities. The 10 year yield rose 15 basis points to 0.71%, while the 2 year yield was unchanged at 0.13%.

In other markets the U.S. Dollar Index declined 0.3% to 93.10, WTI crude oil futures rose 2.1%, or $0.88, to $42.05 a barrel and gold closed at $1,953.70 an ounce.

August 17 – August 21 Economic Calendar

  • Monday
  • Empire State Mfg Survey
    8:30 AM ET
  • Housing Market Index
    10:00 AM ET
  • Treasury International Capital
    4:00 PM ET
  • Tuesday
  • Housing Starts
    8:30 AM ET
  • Redbook
    8:55 AM ET
  • E-Commerce Retail Sales
    10:00 AM ET
  • Wednesday
  • MBA Mortgage Applications
    7:00 AM ET
  • Quarterly Services Report [Advance]
    10:00 AM ET
  • EIA Petroleum Status Report
    10:30 AM ET
  • FOMC Minutes
    2:00 PM ET
  • Thursday
  • Jobless Claims
    8:30 AM ET
  • Philadelphia Fed Business Outlook Survey
    8:30 AM ET
  • Leading Indicators
    10:00 AM ET
  • EIA Natural Gas Report
    10:30 AM ET
  • Fed Balance Sheet
    4:30 PM ET
  • Money Supply
    4:30 PM ET
    • Friday
    • PMI Composite Flash
      9:45 AM ET
    • Existing Home Sales
      10:00 AM ET

    • Baker-Hughes Rig Count
      1:00 PM ET

PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. This commentary is a matter of opinion and is for informational purposes only. It is not intended as investment advice and does not address or account for individual investor circumstances. Investment decisions should always be made based on the client's specific financial needs, goals and objectives, time horizon and risk tolerance. The statements contained herein are based solely upon the opinions of Telemus Capital, LLC. All opinions and views constitute our judgments as of the date of writing and are subject to change at any time without notice. Information was obtained from third party sources, which we believe to be reliable, but not guaranteed.

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