October 26 – October 30 Week in Review

In their worst week since March the major indices dropped more than 5% last week, as the market was overcome with growth concerns, uncertainty, and just plain old investor nervousness. The Dow Jones Industrial Average was the worst performer with a 6.5% decline, followed by the Russell 2000, down 6.2%, the S&P 500, down 5.6%, and the Nasdaq Composite, down 5.5%.

There was no shortage of negative news. Corporate earnings reactions remained disappointing and mostly negative, stimulus talks fell through, the U.S. set a new record for daily coronavirus cases, Pfizer delayed the release of its Phase 3 vaccine trial results, and the pace of new home sales unexpectedly declined in September.

 

Commentary 11.2.20

 

News from overseas didn’t help matters. Germany and France enacted renewed lockdown measures to curb the spread of the coronavirus, and Germany's SAP lowered its revenue outlook due to lockdowns and a muted demand recovery. The Europe Stoxx 600 dropped 5.4% on the week.

The negative sounding headlines helped fuel de-risking efforts in front of this week’s U.S. presidential election, which was likely another headwind for the market due to its increasingly uncertain outcome.

As to what S&P groups suffered the most last week the information technology and industrials sectors were the weakest sectors with 6.5% declines, while the utilities sector fell the least with a 3.5% decline.

It was a tough week generally speaking last week for stocks. The market temporarily stopped the bleeding on Thursday, as the mega-cap tech stocks rallied in front of their earnings reports. Unfortunately, Apple, Amazon, and Facebook sold off on Friday despite exceeding expectations, while Alphabet had a positive reaction. Microsoft, which had reported earlier in the week, also fell noticeably.

U.S. Treasuries ended the week mixed and little changed. The 2 year yield decreased one basis point to 0.15%, while the 10 year yield increased two basis points to 0.86%, its highest close since June.

In other markets the U.S. Dollar Index advanced 1.3% to 94.05, WTI crude futures dropped 10.5%, or $4.18, to $35.70 a barrel and gold closed lower at $1,878.80 an ounce.


November 2 – November 6 Economic Calendar

  • Monday
  • PMI Manufacturing Final
    9:45 AM ET
  • ISM Manufacturing Index
    10:00 AM ET
  • Construction Spending
    10:00 AM ET




  • Tuesday
  • Motor Vehicle Sales
  • Redbook
    8:55 AM ET

  • Factory Orders
    10:00 AM ET





  • Wednesday
  • MBA Mortgage Applications
    7:00 AM ET

  • ADP Employment Report
    8:15 AM ET
  • International Trade in Goods and Services
    8:30 AM ET
  • Treasury Refunding Announcement
    8:30 AM ET
  • PMI Composite Final
    9:45 AM ET
  • ISM Services Index
    10:00 AM ET
  • EIA Petroleum Status Report
    10:30 AM ET


  • Thursday
  • Challenger Job-Cut Report
    7:30 AM ET
  • Jobless Claims
    8:30 AM ET
  • Productivity and Costs
    8:30 AM ET
  • EIA Natural Gas Report
    10:30 AM ET

  • FOMC Announcement
    2:00 PM ET
  • Fed Chair Press Conference
    2:30 PM ET
  • Fed Balance Sheet
    4:30 PM ET
  • Money Supply
    4:30 PM ET





    • Friday
    • Employment Situation
      8:30 AM ET

    • Wholesale Inventories (Preliminary)
      10:00 AM ET
    • Baker Hughes Rig Count
      1:00 PM ET
    • Consumer Credit
      3:00 PM ET


 

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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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