In this week’s recap: coronavirus concerns ripple through
global stock markets; the Fed makes a slight monetary policy adjustment;
consumer confidence rises; the government makes its first estimate of
fourth-quarter growth.
Weekly Economic Update
THE WEEK
ON WALL STREET
Stock
benchmarks declined for a second straight week as coronavirus news tempered
risk appetite.
The
S&P 500 fell 2.14% on the week. The Nasdaq Composite dipped 1.76%, and the
Dow Jones Industrial Average, 2.55%. Away from North America, developed markets
slumped 2.24%, according to MSCI’s EAFE index.1,2
THE Fed
Makes a Minor Move
The
Federal Reserve left short-term interest rates alone at its January meeting,
but it did make what Fed chairman Jerome Powell called a “small technical
adjustment” in view of its continuing purchases of Treasuries. Wednesday, it
slightly increased the interest rate paid to banks that park excess capital
reserves at the Fed.
The
move may give the Fed a bit more control over short-term rates this quarter and
assist the operations of U.S. financial markets.3
Encouraging
New Consumer Data
Rising
to 131.6 in January, the Conference Board’s Consumer Confidence Index reached
its highest level since August. Consumer spending increased 0.3% in December,
according to a new Department of Commerce report.4,5
Economy
Expanded at a 2.1% Pace in Fourth Quarter
The
Bureau of Economic Analysis released this estimate Thursday. That number
matches the gross domestic product of the third quarter and affirms that the
U.S. avoided a fall slowdown.6
T I P O F
T H E W E E K
Auto insurance providers offer a wide range of discounts, perhaps wider than many consumers realize. They may lower rates for good drivers, honor students, seniors, long-time customers, or households or companies insuring multiple cars or trucks. Asking about a carrier’s variety of discounts could lead to savings.
THE WEEK
AHEAD: KEY ECONOMIC DATA
Monday: The latest snapshot of
factory sector health from the Institute for Supply Management, presenting
January data.
Wednesday: ISM’s January report on
the state of non-manufacturing businesses and the latest private-sector
payrolls report from Automatic Data Processing (ADP).
Friday: The Department of Labor
releases its January employment report.
Source:
MarketWatch, January 31, 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: Alphabet (GOOG), Sysco
(SYY)
Tuesday: BP (BP), Fiserv (FISV),
Gilead Sciences (GIL), Walt Disney (DIS)
Wednesday: GlaxoSmithKline (GSK),
Merck (MRK), Qualcomm (QCOM), Toyota (TM)
Thursday: Bristol-Myers Squibb
(BMY), Cigna (CI), Philip Morris (PM), Sanofi (SNY)
Friday: AbbVie (ABBV), Honda
(HMC), Novo Nordisk (NVO)
Source:
Zacks.com, January 31, 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
“Management is nothing
more than motivating other people.”
LEE IACOCCA
T H E W E E K L Y
R I D D L E
There is a word for a place
in Europe, a place where many travelers like to go. But if you take the
first letter of this word and put it at the end of the other four
letters in the word, you have something no one likes. What is this word?
LAST WEEK’S
RIDDLE: 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?
ANSWER: Mississippi
(e.g. one Mississippi, two Mississippi, three Mississippi...).
Troy L Thompson, CFP may be
reached at 515-432-5421 or www.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
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
[1/31/20]
2 - quotes.wsj.com/index/XX/MSCI%20GLOBAL/990300/historical-prices
[1/31/20]
3 - marketwatch.com/story/fed-holds-benchmark-interest-rate-steady-sees-economy-growing-at-moderate-pace-2020-01-29
[1/29/20]
4 - investing.com/economic-calendar/cb-consumer-confidence-48
[1/28/20]
5 - investing.com/economic-calendar/personal-spending-235
[1/31/20]
6 - marketwatch.com/story/economy-grows-21-in-the-4th-quarter-as-gdp-gets-big-boost-from-falling-trade-deficit-2020-01-30
[1/30/20]
quotes.wsj.com/index/XX/MSCI%20GLOBAL/990300/historical-prices
[1/31/20]
quotes.wsj.com/index/SPX/historical-prices
[1/31/20]
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