In this week’s recap: Stocks end up higher and oil ends up
lower after an up-and-down week, as traders react to events in the Middle East
and the data in the December unemployment report.
Weekly Economic Update
THE WEEK
ON WALL STREET
The
market had a choppy five days, with traders reacting to geopolitical
developments and weaker-than-expected jobs data. Even so, the three major U.S.
equity indices posted weekly gains and continued their strong start to the new
year. During Friday’s trading session, the Dow Jones Industrial Average topped
29,000 for the first time.
Rising
1.75% for the week, the Nasdaq Composite outgained both the Dow (up 0.66%) and
the S&P 500 (up 0.94%). The story for foreign stocks was different: the
MSCI EAFE index declined 0.30%.1,2
Holiday
Hiring Numbers
Wall
Street was unimpressed by the latest jobs report from the Department of Labor.
Employers added 145,000 net new workers in December; economists surveyed by Dow
Jones had forecast a gain of 160,000. Wages grew less than 3% year-over-year
for the first time in 17 months.
Unemployment
remained at a 50-year low of 3.5%, however. The broader U-6 jobless rate, which
also includes the underemployed, decreased to 6.7%, the lowest in 26 years of
recordkeeping.3
Oil
Prices Decline
The
rally in crude oil spurred by strained U.S.-Iran relations ebbed this past
week. At Friday’s closing bell, WTI crude was worth $59.04 a barrel on the New
York Mercantile Exchange, down 6.36% for the week and 3.31% year-to-date.4
What’s AHEAD
A
new earnings season starts Tuesday, with big banks leading off and reporting
fourth-quarter results. Chinese Vice Premier Liu He will be in Washington, D.C.,
through Wednesday, and during his visit, he and President Trump are expected to
sign the phase-one trade deal between the U.S. and China.5
T I P O F
T H E W E E K
When it comes to naming an executor for your estate, a family member or relative is not your only option. You can also name an attorney or a corporate trustee as your executor.
THE WEEK
AHEAD: KEY ECONOMIC DATA
Tuesday: The December Consumer
Price Index, providing a look at inflation last month and for all of 2019.
Thursday: December retail sales
figures from the Department of Commerce.
Friday: The University of
Michigan’s preliminary January Consumer Sentiment Index, assessing consumer
confidence levels from multiple angles.
Source:
MarketWatch, January 10, 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
Tuesday: Citigroup (C), Delta Air
Lines (DAL), JPMorgan Chase (JPM), Wells Fargo (WFC)
Wednesday: Bank of America (BAC),
Goldman Sachs (GS), United Health (UNH), US Bancorp (USB)
Thursday: Morgan Stanley (MS)
Friday: Schlumberger (SLB)
Source:
Zacks, January 10, 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 man who says he is
willing to meet you halfway is usually a poor judge of distance.”
LAURENCE J.
PETER
T H E W E E K L Y
R I D D L E
I can be used to build castles,
but I crumble in your hands. I can help a man see, and am found
all around the lands. What am I?
LAST WEEK’S
RIDDLE: 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?
ANSWER: They
did not realize that almost all penguins live in the Southern Hemisphere.
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may be reached at «representativephone»
or «representativeemail»
«representativewebsite»
«representativewebsite»
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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
be worth more or less than when originally invested. This information should
not be construed as investment, tax or legal advice and may not be relied on
for the purpose of avoiding any Federal tax penalty. This is neither a
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
discussed are unmanaged and are not illustrative of any particular investment.
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
Quotation System. The Standard & Poor's 500 (S&P 500) is a market-cap
weighted index composed of the common stocks of 500 leading companies in
leading industries of the U.S. economy. The MSCI EAFE Index is a stock market
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
preeminent trading forum for energy and precious metals, with trading conducted
through two divisions – the NYMEX Division, home to the energy, platinum, and
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
standards. This material represents an assessment of the market environment at
a specific point in time and is not intended to be a forecast of future events,
or a guarantee of future results. MarketingPro, Inc. is not affiliated with any
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1 - wsj.com/market-data
[1/10/20]
2 - quotes.wsj.com/index/XX/MSCI%20GLOBAL/990300/historical-prices
[1/10/20]
3 - cnbc.com/2020/01/10/us-nonfarm-payrolls-december-2019.html
[1/10/20]
4 - marketwatch.com/investing/future/crude%20oil%20-%20electronic
[12/3/20]
5 - cnbc.com/2020/01/09/chinas-vice-premier-liu-to-sign-us-trade-deal-in-washington-next-week.html
[1/9/20]
quotes.wsj.com/index/XX/MSCI%20GLOBAL/990300/historical-prices
[1/10/20]
quotes.wsj.com/index/SPX/historical-prices
[1/10/20]
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