In this week’s recap: stock and commodity traders turn
cautious as the coronavirus reaches America; home sales increase even with the
current housing market’s slim inventory.
Weekly Economic Update
THE WEEK
ON WALL STREET
Stock
prices fell last week as investors considered the potential health and economic
risks of the flu-like coronavirus.
Foreign
stock markets, as tracked by the broad MSCI EAFE index, fell 1.03% for the
week. Coincidentally, the S&P 500 lost exactly that much across a 4-day
Wall Street trading week. The Dow Jones Industrial Average declined 1.22%, the
Nasdaq Composite 0.79%.1,2
Futures
Markets Eye Coronavirus Outbreak
By
Friday’s closing bell, two cases of coronavirus had been confirmed in the U.S.
by the Centers for Disease Control and Prevention. Sixty-three other potential
cases were being monitored. Twenty-six people had died from the virus in China,
where more than 30 million people faced travel restrictions.
This
news exerted a drag on stocks in multiple industries. Oil prices also slipped:
West Texas Intermediate crude lost 7.4% for the week to settle at $54.19
Friday. Stock and commodity traders wondered if the virus would mimic the SARS
scare of 2002-03, which kept Chinese workers and shoppers at home and hurt
corporate earnings worldwide.3,4
Fewest
Homes for Sale in 20 Years
Existing
home sales improved 3.6% in December, according to the National Association of
Realtors. This happened even as the number of listed properties hit a 20-year
low. The NAR says that the rate of total U.S. home sales (existing and new)
increased 10.8% in 2019.5
WHAT’s
AHEAD
Traders
will watch not only earnings and economic indicators this week, but also the
Federal Reserve, which meets Tuesday and Wednesday. Will the central bank’s
latest monetary policy statement reveal any subtle change of outlook?
T I P O F
T H E W E E K
If you make your retirement money hard to reach, you may be doing yourself a favor. Tax-advantaged retirement accounts have rules that help to discourage early withdrawals. Those rules are designed with your future self in mind, and they exist to make you think twice about tapping such accounts for current needs.
THE WEEK
AHEAD: KEY ECONOMIC DATA
Tuesday: The latest consumer
confidence index from the Conference Board.
Wednesday: A monetary policy
announcement from the Federal Reserve, followed by a press conference with Fed
chair Jerome Powell.
Thursday: The first estimate of
fourth-quarter gross domestic product from the Bureau of Economic Analysis.
Friday: December consumer
spending figures from the Department of Commerce, plus the final January
University of Michigan consumer sentiment index (a gauge of consumer confidence
levels).
Source:
MarketWatch, January 24, 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
Monday: D.R. Horton (DHI), Sprint
(S)
Tuesday: Apple (AAPL), Pfizer
(PFE), SAP (SAP), United Technologies (UTX)
Wednesday: AT&T (T), Facebook
(FB), Mastercard (MA), Microsoft (MSFT)
Thursday: Amazon (AMZN), Coca-Cola
(KO), Verizon (VZ), Visa (V)
Friday: Chevron (CVX), ExxonMobil
(XOM), Honeywell International (HON)
Source:
Zacks.com, January 24, 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
“It's not the things we do
in life that we regret on our death bed, it is the things we do not.”
RANDY PAUSCH
T H E W E E K L Y
R I D D L E
I’m a word some use to
measure bits of time, but you won’t find me on a clock or anything that
chimes. I will never fit upon a clock face, but I am used to identify a place.
What word am I?
LAST WEEK’S
RIDDLE: Travel a mile, and I will change. Travel a million miles, and I might
be incapable of further change. What am I?
ANSWER: An
odometer.
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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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.
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1 - wsj.com/market-data
[1/24/20]
2 - quotes.wsj.com/index/XX/MSCI%20GLOBAL/990300/historical-prices
[1/24/20]
3 - cnbc.com/2020/01/24/cdc-confirms-second-us-case-of-coronavirus-chicago-resident-diagnosed.html
[1/24/20]
4 - cnbc.com/2020/01/24/coronavirus-fear-hits-oil-prices-drop-most-since-may.html
[1/24/20]
5 - marketwatch.com/story/existing-home-sales-rebounded-in-december-but-extraordinarily-lean-inventories-are-a-growing-concern-2020-01-22
[1/22/20]
quotes.wsj.com/index/XX/MSCI%20GLOBAL/990300/historical-prices
[1/24/20]
quotes.wsj.com/index/SPX/historical-prices
[1/24/20]
