October 19 – October 23 Week in Review

It was a mixed bag for the stock market last week. The S&P 500 declined 0.5%, largely due to a 2.2% decline in the high flying information technology sector. The Nasdaq Composite fell 1.1%, and the Dow Jones Industrial Average fell 1.0%. The small cap Russell 2000 was the lone gainer, finishing with a 0.4% gain.

Stimulus talks took up a lot of headlines, but the main takeaway was that despite more progress achieved, the passage of a deal may have to wait until after the election. Of course, anything can happen between now and then, but Treasury Mnuchin said on Friday that significant differences still remained.

 

Commentary 10.26.20

 

Of note last week was a possible change in investor sentiment. A rise in the yield of the 10 year Treasury favored the rate sensitive financials sector at the expense of many highly valued growth and technology stocks that had benefited from persistently low yields.

The communication services, utilities, and energy sectors also closed higher. The communication services sector was led by Snap's impressive earnings report as it surged 52% in the three days that followed its report.

Intel and Netflix were some notable earnings related laggards. The former also weighed on the Philadelphia Semiconductor Index.

Additionally, the following developments last week were supportive factors for cyclical stocks: news commentary that separate vaccines from Moderna and AstraZeneca could be available in December sometime after Christmas, better than expected economic data, and daily airline passenger levels reaching one million for the first time since early March.

As previously mentioned the 10 year yield rose ten basis points last week to 0.84% on inflation expectations. The 2 year yield closed higher by 3 basis points at 0.17%.

In other markets last week the U.S. Dollar Index declined 1.0% to 92.72, WTI crude closed lower at $39.78 a barrel and gold closed at $1,903.40 an ounce.


October 26 – October 30 Economic Calendar

  • Monday
  • Chicago Fed National Activity Index
    8:30 AM ET
  • New Home Sales
    10:00 AM ET
  • Dallas Fed Manufacturing Survey
    10:30 AM ET



  • Tuesday
  • Durable Goods Orders
    8:30 AM ET
  • 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

  • International Trade in Goods (Advance)
    8:30 AM ET
  • Beige Book
    2:00 PM ET
  • Retail Inventories (Advance)
    8:30 AM ET
  • Wholesale Inventories (Advance)
    8:30 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
  • 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

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





    • Friday
    • Personal Income and Outlays
      8:30 AM ET

    • Employment Cost Index
      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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