March 23 – March 27 Week in review

The markets were on the rebound last week, although they ended Friday on a low note. Investors stepped in to buy the dip after Congress approved the $2 trillion stimulus package for households and businesses. The S&P 500 rose 10.3%, the Dow Jones Industrial Average rose 12.8%, the Nasdaq Composite rose 9.1%, and the Russell 2000 rose 11.7%.

At one point last week, the S&P 500 was up 20% from its intraday low. All 11 S&P 500 sectors finished the week with gains. Seven sectors advanced at least 10%, led by a 17.7% gain in the utilities sector. The communication services sector was the worst performer, advancing "just" 5.5%.

Commentary 3.30.20

Initial jobless claims for the week ending March 21 increased by 3.001 million to a record 3.283 million, which was above most expectations but also unsurprising given the economic shutdowns aimed at slowing the rate of coronavirus infections across the country. For the market, and Congress, it brought to light how bad the situation is getting for American workers.

The Fed, meanwhile, continued to ramp up its stimulus efforts. The central bank lifted the $700 billion cap on its purchases of Treasury and agency mortgage-backed securities and said it will buy "in the amounts needed." The Fed also established new credit facilities and said it will be buying investment grade corporate bonds, municipal debt, and U.S. listed exchange ETFs for investment grade corporate bonds. For good measure, Fed Chair Powell reiterated in an NBC "Today Show" interview that the Fed isn't going to run out of ammunition and will continue to provide credit to places that need it.

In other notable news President Trump set Easter (April 12) as a goal for when he would want the economy to reopen for business, which drew some criticism for it being too soon given that the number of coronavirus infections is still rising here and elsewhere. For example U.K. Prime Minister Boris Johnson announced he had tested positive for the coronavirus.

U.S. Treasuries advanced alongside equities last week as the credit markets settled down somewhat. The 2 year yield declined 14 basis points to 0.23%, and the 10 year yield declined 19 basis points to 0.75%.

In other markets the U.S. Dollar Index declined 4.4% to 98.32. WTI crude dropped 8.8%, or $2.08, to $21.65 a barrel as little was done to aid the struggling oil industry.

March 30 – April 3 Economic Calendar

  • Monday
  • Pending Home Sales Index
    10:00 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
  • Chicago PMI
    9:45 AM ET
  • Consumer Confidence
    10:00 AM ET
  • Farm Prices
    3:00 PM ET


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



  • Thursday
  • Motor Vehicle Sales
  • Challenger Job-Cut Report
    7:30 AM ET
  • International Trade
    8:30 AM ET
  • Jobless Claims
    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
    • PMI Services Index
      9:45 AM ET

    • ISM Non-Mfg Index
      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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