February 17 – February 21 Week in review

The markets fell last week although the S&P 500, down 1.3%, and the Nasdaq Composite, down 1.6%, set new intraday and closing records before coronavirus concerns gripped the markets. The Dow Jones Industrial Average lost 1.4%, and the Russell 2000 lost 0.5%.

The week started with Apple, the world's largest technology company by market cap, providing a revenue warning for the March quarter due to the coronavirus. Shares recouped initial losses a day later, as investors viewed the situation as temporary and China-specific, but it was hard to ignore the widening spread of the virus and the defensive positioning in the market.

Commentary 2.24.20

U.S. Treasuries, gold, and the CBOE Volatility Index advanced noticeably during the week, and barely moved even when the market hit new highs and momentum stocks like Tesla and Virgin Galactic extended their parabolic runs. Part of the defensiveness could be attributed to the elevated valuations in the market clashing with growth risks due to the coronavirus.

Cyclical sectors, and mega-cap stocks, underperformed, with the S&P 500 information technology, financials, and industrials sectors leading the retreat. The defensive-oriented real estate sector was the lone group to avoid a weekly loss.

If one were to remain constructive on the market, one could point to last week's upbeat economic data. Building permits climbed to a near 13-year high in January, weekly jobless claims remained at low levels, and the Philadelphia Fed Index surged to 36.7 in February from 17.0 in January. The data wasn't enough to prevent profit taking as investors sought safer havens.

The 2 year yield declined seven basis points to 1.35%, and the 10 year yield declined 11 basis points to 1.47%. The 30 year Treasury yield hit a record low of 1.93%.

In other markets the U.S. Dollar Index closed 0.2% higher to 99.32 after setting a three-year high during the week. WTI crude rose 2.8%, or $1.44, to $53.37 a barrel.

February 24 – February 28 Economic Calendar

  • Monday
  • Chicago Fed National Activity Index
    8:30 AM ET

  • Dallas Fed Mfg Survey
    10:30 AM ET
  • Tuesday
  • Redbook
    8:55 AM ET
  • S&P Corelogic Case-Shiller HPI
    9:00 AM ET
  • FHFA House Price Index
    9:00 AM ET
  • Consumer Confidence
    10:00 AM ET

  • Richmond Fed Manufacturing Index
    10:00 AM ET



  • Wednesday
  • MBA Mortgage Applications
    7:00 AM ET
  • New Home Sales
    10:00 AM ET
  • State Street Investor Confidence Index
    10:00 AM ET
  • EIA Petroleum Status Report
    10:30 AM ET
  •     
    Survey of Business Uncertainty
    11:00 AM ET




  • Thursday
  • Durable Goods Orders
    8:30 AM ET
  • GDP
    8:30 AM ET
  • Jobless Claims
    8:30 AM ET
  • Pending Home Sales Index
    10:00 AM ET

  • EIA Natural Gas Report
    10:30 AM ET

  • Kansas City Fed Manufacturing Index
    11:00 AM ET
  • Fed Balance Sheet
    4:30 PM ET
  • Money Supply
    4:30 PM ET
    • Friday
    • International Trade in Goods
      8:30 AM ET
    • Personal Income and Outlays
      8:30 AM ET
    • Retail Inventories [Advance]
      8:30 AM ET

    • Wholesale Inventories [Advance]
      8:30 AM ET

    • Chicago PMI
      9:45 AM ET


    • Consumer Sentiment
      10:00 AM ET
    • Baker-Hughes Rig Count
      1:00 PM ET
    • Farm Prices
      3:00 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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