February 23 – February 28 Week in review

It was a brutal week for stocks last week as the stock market endured its worst week since 2008 as coronavirus concerns and the economic impact gripped the markets. The S&P 500 fell 11.5% while the Dow Jones Industrial Average surrendered 12.4%, the Nasdaq 10.5% and the Russell 2000 12.0%.

The communication services sector was the only group with a slimmer loss than 10.0% while the remaining sectors retreated between 10.4%, for consumer staples, and 15.4%, for the energy sector.

Commentary 3.2.20

Equities faced heavy selling pressure throughout the week as coronavirus related fears caught up with the market, which appeared immune to these concerns. The accelerating spread of the coronavirus outside of China was the main worry, leading to greater uncertainty about the viability of global supply chains. Intel ordered its employees to avoid travel to China and several other countries, but on the bright side, Apple CEO, Tim Cook, said on Thursday that his company is working toward resumption of full production.

U.S. health officials acknowledged that the coronavirus is likely to spread through the U.S., which contributed to the pressure on stocks. The CBOE Volatility Index jumped more than 23 points to 40%, ending last week at its highest level since February 2018 when an inverse volatility ETN imploded.

Treasuries charged higher throughout the week as investors sought a safer haven, sending the 2 year yield to 0.91% and the 10 year yield to a fresh record low of 1.13%.

In other markets WTI crude lost $8.54, or 16.0%, for the week, falling to its lowest level since late 2018. The U.S. Dollar index ended the week slightly lower at 98.13.

March 2 – March 6 Economic Calendar

  • Monday
  • PMI Manufacturing Index
    9:45 AM ET
  • ISM Mfg Index
    10:00 AM ET
  • Construction Spending
    10:00 AM ET
  • Tuesday
  • Motor Vehicle Sales
  • Redbook
    8:55 AM ET






  • Wednesday
  • MBA Mortgage Applications
    7:00 AM ET
  • ADP Employment Report
    8:15 AM ET
  • PMI Services Index
    9:45 AM ET
  • ISM Non-Mfg Index
    10:00 AM ET
  •     
    EIA Petroleum Status Report
    10:30 AM ET

  • Beige Book
    2:00 PM ET
  • Thursday
  • Challenger Job-Cut Report
    7:30 AM ET
  • Jobless Claims
    8:30 AM ET
  • Productivity and Costs
    8:30 AM ET
  • Factory Orders
    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
    • Employment Situation
      8:30 AM ET
    • International Trade
      8:30 AM ET
    • Wholesale Trade
      10:00 AM ET
    • Baker-Hughes Rig Count
      1:00 PM ET
    • Consumer Credit
      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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