In this week’s recap: Oil prices spike after a U.S.
airstrike in Iran raises supply disruption concerns; a manufacturing activity
index disappoints; stocks are little changed following an abbreviated trading
week.
Weekly Economic Update
THE WEEK
ON WALL STREET
Stocks
descended from record highs Friday, as traders reacted to a U.S. drone strike
that killed Iran’s top military officer. Oil prices rose more than 3% following
the breaking news.1
Wall
Street benchmarks ended up having a sideways week, shortened by the New Year’s
Day holiday. The Dow Jones Industrial Average lost 0.04% across four trading
sessions; the S&P 500, 0.16%. In contrast, the Nasdaq Composite rose 0.16%.
The MSCI EAFE index, benchmarking developed overseas stock markets, added 0.30%.2-3
Oil
Takes Center Stage
WTI
crude oil settled at $63.05 a barrel on the New York Mercantile Exchange
Friday, down from an intraday peak of $64.09 (which was its highest price since
April).
The
commodity rallied Friday as energy traders considered the possibility of supply
disruptions in the Middle East in retaliation for last week’s U.S. air strike.4
Manufacturing
Activity Declines
At
the start of each month, economists watch the Institute for Supply Management’s
Purchasing Managers Index for the factory sector, which is considered a key barometer
of U.S. manufacturing health.
Last
week, ISM announced a December reading of 47.2 for this index, the poorest in
more than ten years. A reading below 50 indicates manufacturing activity is
contracting rather than expanding.5
T I P O F
T H E W E E K
Turning 50 in 2020? You now have the chance to make catch-up contributions to retirement accounts and to workplace retirement plans.
THE WEEK
AHEAD: KEY ECONOMIC DATA
Tuesday: The Institute for Supply
Management presents its December Non-Manufacturing Purchasing Managers Index,
gauging the pace of activity in the U.S. service sector.
Wednesday: Payroll processor ADP
releases its December national private-sector employment report.
Friday: The December jobs report
from the Department of Labor.
Source:
MarketWatch, January 3, 2020
The MarketWatch economic calendar lists upcoming U.S. economic
data releases (including key economic indicators), Federal Reserve policy meetings,
and speaking engagements of Federal Reserve officials. The content is developed
from sources believed to be providing accurate information. The forecasts or
forward-looking statements are based on assumptions and may not materialize.
The forecasts also are subject to revision.
THE WEEK
AHEAD: COMPANIES REPORTING EARNINGS
Wednesday: Constellation Brands
(STZ), Lennar (LEN), Walgreens Boots Alliance (WBA)
Friday: Infosys (INFY)
Source:
Zacks.com, January 3, 2020
Companies
mentioned are for informational purposes only. It should not be considered a
solicitation for the purchase or sale of the securities. Any investment should
be consistent with your objectives, time frame, and risk tolerance. The return
and principal value of investments will fluctuate as market conditions change.
When sold, investments may be worth more or less than their original cost.
Companies may reschedule when they report earnings without notice.
Q U O T E O F T H E W E E K
“The moment of victory
is much too short to live for that and nothing else.”
MARTINA Navratilova
T H E W E E K L Y
R I D D L E
A couple took a trip
to the Arctic Circle, and they were disappointed that they did not see
any penguins. What didn’t they realize about penguins?
LAST WEEK’S
RIDDLE: Two people are born at the same moment, but they don’t have the same
birthdays. How can this be?
ANSWER: They
are born in different places, in different time zones.
Troy L Thompson, CFP may be
reached at 515-432-5421 or troy@thompsonfinancialinc.com
www.thompsonfinancialinc.com
www.thompsonfinancialinc.com
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someone who could use information like this?
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Please feel free to send us their contact information via phone or email. (Don’t worry – we’ll request their permission before adding them to our mailing list.)
Troy Thompson, CFP
DBA Thompson Financial and Hanson Asset Strategies
Securities offered through FIRST HEARTLAND CAPITAL, INC.
Member FINRA & SIPC.
Thompson Financial is not affiliated with FIRST HEARTLAND
CAPITAL, INC.
This material was prepared by MarketingPro, Inc., and does
not necessarily represent the views of the presenting party, nor their
affiliates. The information herein has been derived from sources believed to be
accurate. Please note - investing involves risk, and past performance is no
guarantee of future results. Investments will fluctuate and when redeemed may
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solicitation nor recommendation to purchase or sell any investment or insurance
product or service, and should not be relied upon as such. All market indices
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Indices do not incur management fees, costs and expenses, and cannot be
invested into directly. All economic and performance data is historical and not
indicative of future results. The Dow Jones Industrial Average is a
price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ
Composite Index is a market-weighted index of all over-the-counter common
stocks traded on the National Association of Securities Dealers Automated
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weighted index composed of the common stocks of 500 leading companies in
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index that is designed to measure the equity market performance of developed
markets outside of the U.S. and Canada. NYSE Group, Inc. (NYSE:NYX) operates
two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE
Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific
Exchange). NYSE Group is a leading provider of securities listing, trading and
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(NYMEX) is the world's largest physical commodity futures exchange and the
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palladium markets, and the COMEX Division, on which all other metals trade.
Additional risks are associated with international investing, such as currency
fluctuations, political and economic instability and differences in accounting
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2 - wsj.com/market-data [1/3/20]
3 - quotes.wsj.com/index/XX/MSCI%20GLOBAL/990300/historical-prices
[1/3/20]
4 - reuters.com/article/us-global-markets/oil-safe-havens-surge-after-u-s-strikes-kill-iran-commander-idUSKBN1Z2042
[1/3/20]
5 - marketwatch.com/story/us-manufacturing-slumps-worsens-in-december-as-ism-index-falls-to-10-year-low-2020-01-03
[1/3/20]
quotes.wsj.com/index/XX/MSCI%20GLOBAL/990300/historical-prices
[1/3/20]
quotes.wsj.com/index/SPX/historical-prices
[1/3/20]
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