February 10 – February 14 Week in review

It was another record setting week for the markets last week as investors remained undeterred by the coronavirus and continued to stay bullish. The Nasdaq Composite, up 2.2%, and Russell 2000, up 1.9%, led the way, followed by the S&P 500, up 1.6%, and Dow Jones Industrial Average, up 1.0%.

Most of last week's gains came on Monday as investors continued to pile into shares of mega-cap technology companies. Reports that highlighted the slowing rate of the coronavirus solidified the gains, and the market barely reacted to follow-up reports indicating a spike in new cases at week end.

Commentary 2.18.20

All 11 S&P 500 sectors finished with gains, including four that rose at least 2.0% -- real estate, consumer discretionary, utilities, and information technology. The energy sector underperformed despite a 3.1% bounce in WTI crude.

The Philadelphia Semiconductor Index regained momentum, rising 5.0% last week amid positive analyst recommendations and encouraging results and guidance from NVIDIA, which climbed 15% on the week.

It's fair to say that the virus remains a risk, at least based on the rising number of cases and cautious commentary provided by U.S. companies. The market, though, remains assured that it will eventually die down and that dovish monetary policy will continue to support equities. Fed Chair Powell for his part said the Fed is "closely monitoring" the situation in his semiannual testimony before Congress.

There was still a defensive tone, though, evidenced by the gains in the real estate and utilities sectors. U.S. Treasuries finished the week little changed from the prior week. The 2 year yield increased three basis points to 1.42%, while the 10 year yield remained unchanged at 1.58%.

In other markets the U.S. Dollar Index advanced 0.4% to 99.12 and WTI crude closed at $51.93 a barrel.

February 17 – February 21 Economic Calendar

  • Monday


  • Tuesday
  •   Baker-Hughes Rig Count
    1:00 PM ET

  • Housing Market Index
    10:00 AM ET
  • Treasury International Capital
    4:00 PM ET

  • Wednesday
  • MBA Mortgage Applications
    7:00 AM ET
  • Housing Starts
    8:30 AM ET
  • PPI-FD
    8:30 AM ET
  • Redbook
    8:55 AM ET
  •     
    E-Commerce Retail Sales
    10:00 AM ET

  • Quarterly Services Report [Advance]
    10:00 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

  • EIA Petroleum Status Report
    11:00 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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