August 3 – August 7 Week in Review

It was another strong week for stocks last week. The small cap Russell 2000 led the way with a 6.0% gain, followed by the Dow Jones Industrial Average with a 3.8% gain. The S&P 500 rose 2.5%, and the Nasdaq Composite rose 2.5%.

The overall gains were widespread, with all 11 S&P 500 sectors finishing in positive territory. The industrials, financials, energy, and communication services sectors led the way and outpacing the benchmark index, while the health care and real estate sectors were laggards.

08.10.2020 Video

Within the communication services sector, Walt Disney surged 11% after reporting a surprise quarterly profit and posting strong subscriber numbers for its streaming platform. Facebook gained 6%, as investors chased the stock higher in a momentum trade.

In other corporate news, Microsoft resumed talks to acquire TikTok, and Novavax provided an encouraging vaccine update on a Phase 1/2 trial for healthy adults ages 18-59.

Last week's economic data continued to depict a rebounding labor market. Nonfarm payrolls increased by 1.763 million in July, the unemployment rate improved to 10.2% from 11.1% in June, and weekly initial claims decreased by 249,000 to 1.186 million for its lowest level since March. In addition, data from the ISM showed manufacturing activity and non-manufacturing activity continue to expand in July.

On the political front Democrats and the White House remained far apart on key relief provisions for another round of financial aid and were unable to strike a deal. Treasury Secretary Mnuchin said he would recommend to President Trump signing executive orders that extend the eviction moratorium and enhanced unemployment benefits, which in fact he did over the weekend.

U.S. Treasury prices declined modestly last week. The 2 year yield increased three basis points to 0.13%, and the 10 year yield increased two basis points to 0.56%.

In other markets last week the U.S. Dollar Index increased 0.1% to 93.41, WTI crude futures rose 2.6%, or $1.04, to $41.17 a barrel and gold closed at $2,046.10 an ounce.

August 10 – August 14 Economic Calendar

  • Monday
    10:00 AM ET
  • TD Ameritrade IMX
    12:30 PM ET
  • Tuesday
  • NFIB Small Business Optimism Index 
    6:00 AM ET
  • PPI-FD
    8:30 AM ET
  • Redbook
    8:55 AM ET
  • Wednesday
  • MBA Mortgage Applications
    7:00 AM ET
  • CPI
    8:30 AM ET
  • Atlanta Fed Business Inflation Expectations
    10:00 AM ET
  • EIA Petroleum Status Report
    10:30 AM ET
  • Treasury Budget
    2:00 PM ET
  • Thursday
  • Jobless Claims
    8:30 AM ET
  • Import and Export Prices
    8:30 AM ET
  • EIA Natural Gas Report
    10:30 AM ET
  • Fed Balance Sheet
    4:30 PM ET
  • Money Supply
    4:30 PM ET
    • Friday
    • Retail Sales
      8:30 AM ET
    • Productivity and Costs
      8:30 AM ET
    • Industrial Production
      9:15 AM ET
    • Business Inventories
      10:00 AM ET
    • Consumer Sentiment
      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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