September 14 – September 18 Week in Review

It was a mixed bag for the stock market last week and another tough week for the mega-caps. Some rotation into cyclical and value stocks however helped to limit the major index declines. The S&P 500 and Nasdaq Composite both lost 0.6% and the Dow Jones Industrial Average fell 0.3%. The Russell 2000 rose 2.6% as investors also rotated money into small cap stocks.

Factors that contributed to the rotation into cyclical and value stocks included AstraZeneca resuming its COVID-19 vaccine trials in the UK, rebounding oil prices that favored energy stocks, upbeat guidance out of the steel industry, and General Electric providing positive cash flow expectations.


Commentary 09.21.20


The week started on a bullish note, with the market broadly rebounding on Monday and Tuesday. The general weakness started on Wednesday after the FOMC policy decision announcement. The Fed did as expected, so we can't really blame the central bank. In a nutshell the Fed kept rates unchanged and signaled they will remain near zero through 2023.

The mega-caps showed weakness right off the bat and extended their losses throughout the rest of the week. Among the reasons helping their decline were valuation concerns sparked somewhat by a spectacular IPO from cloud data warehousing firm Snowflake, options expiration activity on Friday, and news that TikTok and WeChat will be banned from U.S. downloads on Sunday.

Speaking of mega-caps, Apple fell 4.6% last week, dragging the S&P 500 information technology sector down with it. The communication services, consumer discretionary, and consumer staples sectors fell even more, while the energy, industrials, materials, and health care sectors benefited from the rotational trade.

The financial sector outperformed on a relative basis, but the Fed's acknowledgement of lower rates for longer, and profitability concerns, helped dampen group sentiment. Citigroup fell 12% on news it could get reprimanded for failing to improve its risk management systems.

In other developments of note last week, NVIDIA agreed to acquire chip maker Arm Holdings from Softbank for $40 billion in cash and stock, and House Speaker Pelosi repeated that a stimulus deal must be at least $2.2 trillion. Ms. Pelosi's comments came after centrist lawmakers proposed a $1.5 trillion relief bill that President Trump said he liked.

In the bond market U.S. Treasuries traded basically flat for the week. The 2 year yield remained unchanged at 0.13%, and the 10 year yield increased two basis points to 0.69%.

In other markets he U.S. Dollar Index declined 0.4% to 92.95, WTI crude closed at $41.09 a barrel, a gain of 10.0% for the week, and gold closed at $1,957.10 an ounce.

September 21 – September 25 Economic Calendar

  • Monday
  • Chicago Fed National Activity Index
    8:30 AM ET

  • Tuesday
  • Redbook
    8:55 AM ET
  • Existing Home Sales
    10:00 AM ET
  • Richmond Fed Manufacturing Index
    10:00 AM ET

  • Jerome Powell Speaks
    10:30 AM ET
  • Wednesday
  • MBA Mortgage Applications
    7:00 AM ET
  • FHFA House Price Index
    9:00 AM ET
  • PMI Composite Flash
    9:45 AM ET

  • Jerome Powell Speaks
    10:00 AM ET
  • EIA Petroleum Status Report
    10:30 AM ET

  • Thursday
  • Jobless Claims
    8:30 AM ET
  • New Home Sales
    10:00 AM ET
  • Jerome Powell Speaks
    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
    • Durable Goods Orders
      8:30 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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