November 16 – November 20 Week in Review

It was a mixed bag for the major averages last week. Cyclical stocks retained their monthly leadership roles following several positive vaccine developments, but the S&P 500, down 0.8%, and the Dow Jones Industrial Average, lower by 0.7%, finished in negative territory. The small cap Russell 2000 climbed 2.4%, and the Nasdaq Composite increased 0.2% despite relative weakness in technology stocks.

The S&P 500 energy sector set the performance pace with a 5.0% gain to extend its monthly gain to 23%. The industrials, materials, and financials sectors followed suit, and the Philadelphia Semiconductor Index and the SPDR S&P Retail ETF were other pockets of strength last week.

Commentary 11.23.20

The semiconductor space was fueled by news that Taiwan Semi is expanding production capacity to meet high demand from chip companies. The retail space drew support from a host of better than expected earnings reports from retailers like Walmart and Target.

Conversely, the information technology sector was an influential drag on index performance, and the countercyclical utilities, health care, and real estate sectors also declined noticeably.

On the vaccine front Pfizer and BioNTech filed for emergency use authorization for their COVID-19 vaccine after concluding their Phase 3 study, which indicated that their vaccine is 95% effective; Moderna said its vaccine is 94.5% effective; and AstraZeneca and Oxford's vaccine showed encouraging immune responses in older patients in Phase 2 data.

Notable moves last week were Boeing shares gaining 7% in part due to the FAA finally approving the 737 MAX safe to fly again, Tesla shares surging 20% on news it will be added to the S&P 500 on Dec. 21st and Walgreens Boots Alliance shares falling 12% following the launch of Amazon's online pharmacy business.

In the U.S. Treasury market the 2 year yield fell 2 basis points to 0.16% and the 10 year yield fell six basis points to 0.86% amid increased demand despite the encouraging vaccine news.

In other markets the U.S. Dollar index fell slightly closing at 92.40, WTI crude gained almost 5% to close at $42.17 a barrel and gold fell slightly to close at $1,869.60 an ounce.

November 23 – November 27 Economic Calendar

  • Monday
  • Chicago Fed National Activity Index
    8:30 AM ET
  • PMI Composite Flash
    9:45 AM ET
  • Tuesday
  • Redbook
    8:55 AM ET
  • Case-Shiller House Price Index
    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
  • Durable Goods Orders
    8:30 AM ET
  • GDP
    8:30 AM ET
  • International Trade in Goods [Advance]
    8:30 AM ET
  • Jobless Claims
    8:30 AM ET
  • Corporate Profits
    8:30 AM ET
  • Retail Inventories (Advance)
    8:30 AM ET
  • Wholesale Inventories (Advance)
    8:30 AM ET
  • New Home Sales
    10:00 AM ET
  • Consumer Sentiment
    10:00 AM ET
  • Personal Income and Outlays
    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
  • EIA Natural Gas Report
    12:00 PM ET
  • Baker Hughes Rig Count
    1:00 PM ET
  • FOMC Minutes
    2:00 PM ET
  • Thursday


    • Friday
    • Fed Balance Sheet
      4:30 PM ET
    • Money Supply
      4:30 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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