November 9 – November 13 Week in Review

It was mostly a positive week for the markets last week. The S&P 500, up 2.2%, and the Russell 2000, up 6.1%, closed at new record highs. The Dow Jones Industrial Average also finished higher, gaining 4.1%. The Nasdaq Composite couldn’t keep pace and declined 0.6% amid relative weakness in the mega-cap growth and stay at home stocks.

The market brushed aside record daily coronavirus cases and hospitalizations in the U.S. and a warning from Fed Chair Powell that the economy will be challenging for the next few months. Investors and analysts remained bullish however, with Goldman Sachs forecasting the S&P 500 to hit 4,300 by the end of 2021.

Commentary 11.16.20

Money disproportionately flowed into the economically sensitive stocks on news that the collaborative COVID-19 vaccine from Pfizer and BioNTech was more than 90% effective. Overall the market remained hopeful that a vaccine will help the economy return to pre-pandemic levels in 2021 and instill a sense of normalcy.

On the political front Joe Biden being projected as the winner of the presidential election washed out some uncertainty, although there will be two election runoffs in Georgia on January 5th that will determine if Republicans retain their majority in the Senate.

Notwithstanding the election implications on another round of economic stimulus, the market took the vaccine news as well as one could have hoped with all 11 S&P 500 sectors closing in positive territory.

The energy sector was the standout performer with an impressive 16.5% weekly gain, followed by solid gains in the financials and industrials sectors. On the other hand, the consumer discretionary and information technology sectors underperformed amid profit-taking activity in some of the mega-cap stocks.

In the bond market the 2 year U.S. Treasury yield increased 2 basis points to 0.18% and the 10 year yield increased seven basis points to 0.89% amid renewed selling pressure.

In other markets the U.S. Dollar Index rose slightly to 92.72, WTI crude jumped 8% to $40.12 a barrel helped by the vaccine news and gold fell 3.0% to close at $1,888.20 an ounce.


November 16 – November 20 Economic Calendar

  • Monday
  • Empire State Manufacturing Index
    8:30 AM ET






  • Tuesday
  • Retail Sales
    8:30 AM ET
  • Import and Export Prices
    8:30 AM ET
  • Redbook
    8:55 AM ET
  • Business Inventories
    10:00 AM 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 and Permits
    8:30 AM ET
  • Quarterly Services Survey
    10:00 AM ET
  • EIA Petroleum Status Report
    10:30 AM ET
  •  
  • Thursday
  • Jobless Claims
    8:30 AM ET
  • Philadelphia Fed Manufacturing Index
    8:30 AM ET
  • Existing Home Sales
    10:00 AM ET
  • E-Commerce Retail Sales
    10:00 AM ET

  • Leading Indicators
    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

    • 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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