In this week’s recap: Wall Street grapples with coronavirus unknowns;
new Federal Reserve meeting minutes appear; existing home sales retreat; the
price of gold climbs.
Weekly Economic Update
THE WEEK
ON WALL STREET
Traders
paid close attention to coronavirus developments and earnings last week, while
wondering how the former might eventually impact the latter. Concern over
updated infection numbers moderated risk appetite.
A
pair of key stock benchmarks posted similar weekly losses. In New York, the
S&P 500 declined 1.25%; the MSCI EAFE index (of developed stock markets
away from North America) lost 1.24%. The Dow Jones Industrial Average retreated
1.38% for the four-day trading week; the Nasdaq Composite, 1.59%.1,2
Minutes
from the Federal Reserve’s January Meeting
Last
month, members of the Federal Open Market Committee felt the near-term outlook
for the economy had improved slightly since the last Fed meeting in December.
The minutes did note that the COVID-19 coronavirus outbreak “warranted close
watching.”
Some
analysts have wondered, if the coronavirus threat heightens, whether the Fed
might cut short-term interest rates this year. The FOMC voted 11-0 in January
to leave rates alone.3
Fewer
Home Sales, But More Building Permits
Sales
of existing homes weakened 1.3% in January, according to a new National
Association of Realtors report. On the new home front, the Census Bureau said
that the rate of permits for new residential construction neared a 13-year high
last month.4,5
FINAL THOUGHT
At
Friday’s closing bell, gold was worth $1,646.60 on the New York Mercantile
Exchange. Gold futures traded at a seven-year
peak on Friday morning.4
T I P O F
T H E W E E K
Think about taking an inventory all of your assets this year. This can be useful not only for insurance purposes, but also for an estate strategy.
THE WEEK
AHEAD: KEY ECONOMIC DATA
Tuesday: The Conference Board’s
monthly Consumer Confidence Index.
Wednesday: A January new home buying
report from the Census Bureau.
Thursday: The second estimate of
fourth-quarter economic growth from the Bureau of Economic Analysis.
Friday: January consumer spending
numbers from the Department of Commerce, and the final February Consumer Sentiment
Index from the University of Michigan (an assessment of consumer confidence
levels).
Source:
MarketWatch, February 21, 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: HP (HPQ), Intuit (INTU),
Palo Alto Networks (PANW)
Tuesday: Home Depot (HD), Public
Storage (PSA), Salesforce (CRM)
Wednesday: Booking Holdings (BKNG),
Lowe’s (LOW), TJX Companies (TJX)
Thursday: Anheuser-Busch Inbev
(BUD), Baidu (BIDU), Best Buy (BBY), Dell Technologies (DELL)
Friday: Dollar Tree (DLTR)
Source:
MarketWatch, Market Insider, February 21, 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
“Faith is taking
the first step, even when you don't see the whole staircase.”
DR. MARTIN
LUTHER KING, JR.
T H E W E E K L Y
R I D D L E
Touching me is inevitable. I can
send chills down spines. Even so, you may welcome me. What am I?
LAST WEEK’S
RIDDLE: Four women sit down to play, playing after the end of the day, playing
for cash, not for fun, a separate score for everyone. Not one lost, and all
gained. Now that you’ve heard this, can you explain… what they did, and why it
happened this way?
ANSWER: The
four women were professional musicians, who were paid to perform.
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.
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
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1 - wsj.com/market-data
[2/21/20]
2 - quotes.wsj.com/index/XX/MSCI%20GLOBAL/990300/historical-prices
[2/21/20]
4 - tinyurl.com/w6an89m [2/21/20]
5 - marketwatch.com/story/housing-starts-dip-36-in-january-but-permits-hit-13-year-high-2020-02-19
[2/19/20]
wsj.com/market-data [2/21/20]
quotes.wsj.com/index/SPX/historical-prices
[2/21/20]
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