In this week’s recap: stocks gain after volatile week,
despite COVID-19 acceleration.
Weekly Economic Update
THE WEEK
ON WALL STREET
Stock
prices notched solid gains last week, looking past an increase in COVID-19
cases and any potential economic concerns raised by the trend.
The
Dow Jones Industrial Average increased by 0.96%, while the Standard &
Poor’s 500 climbed 1.76%. The Nasdaq Composite Index bounded 4.01% higher for
the week. The MSCI EAFE Index, which tracks developed stock markets overseas,
gained just 0.07%.1,2,3
Virus
Concerns
Stocks
experienced a volatile week as investors negotiated the crosswinds of
encouraging overseas economic data with an accelerating number of COVID-19
cases in several states. Ongoing support of the financial markets by the
Federal Reserve appeared to offset any concerns about an economic rebound.
The
big technology companies continued to shine, leading the Nasdaq Composite to
multiple new record highs. News of positive trial results for a potential
COVID-19 treatment boosted stocks on the final trading day, closing the week on
an encouraging note.
On the
Record
Regional
Federal Reserve presidents had several speaking engagements last week, and the
message was a consistent one: expect the economic recovery to remain bumpy.
Cleveland
Fed President Loretta Mester said that the economy in her region is slowing due
to rising COVID-19 cases. She linked gains in combating the virus with further
economic progress. She also echoed earlier comments by Fed Chairman Powell that
more fiscal support is necessary.4
Meanwhile,
San Francisco Fed President Mary Daly observed that it was unlikely many
companies would be rehiring all their employees. Thomas Barkin, president of
Richmond Federal Reserve, reiterated the challenges of a labor recovery, but
also spoke of the strain on local and state governments.5,6
T I P O F
T H E W E E K
Ramp up your college savings with rewards programs. There are credit cards and online shopping programs that can allow you to direct a steady stream of rebates toward your education fund.
THE WEEK
AHEAD: KEY ECONOMIC DATA
Tuesday: Consumer Price Index (CPI).
Thursday: Jobless Claims. Retail Sales.
Friday: Housing Starts.
Source:
Econoday, July 10, 2020
The Econoday 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: PepsiCo, Inc. (PEP).
Tuesday: JPMorgan Chase & Co. (JPM), Citigroup (C),
Wells Fargo (WFC).
Wednesday: International Business Machines (IBM), Goldman
Sachs (GS), eBay, Inc. (EBAY).
Thursday: Microsoft (MSFT), Netflix (NFLX), Bank of America
(BAC), Johnson & Johnson (JNJ), UnitedHealth Group (UNH), Abbott
Laboratories (ABT), Morgan Stanley (MS), Honeywell International (HON).
Friday: Blackrock, Inc. (BLK).
Source:
Zacks, July 10, 2020
Companies
mentioned are for informational purposes only. It should not be considered a solicitation
for the purchase or sale of the securities. Investing involves risks, and
investment decisions should be based on your own goals, time horizon, and
tolerance for risk. 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 longer I live, the more
I realize the impact of attitude on life.”
MARK TWAIN
T H E W E E K L Y
R I D D L E
A parking lot has 1,000
parking spaces, 40% of them for compact cars. There are 200 compact cars and
some standard-size cars in the lot, which is 75% full. How many standard-size
cars are in the lot?
LAST WEEK’S
RIDDLE: To date, only one bachelor has served as President of the United
States. Can you name him?
ANSWER: James
Buchanan.
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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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.
Investing involves risks, and investment decisions should be
based on your own goals, time horizon, and tolerance for risk. 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.
The forecasts or forward-looking statements are based on
assumptions, may not materialize, and are subject to revision without notice.
The market indexes discussed are unmanaged, and generally,
considered representative of their respective markets. Index performance is not
indicative of the past performance of a particular investment. Indexes do not
incur management fees, costs, and expenses. Individuals cannot directly invest
in unmanaged indexes. Past performance does not guarantee future results.
The Dow Jones Industrial Average is an unmanaged index that is
generally considered representative of large-capitalization companies on the
U.S. stock market. Nasdaq Composite is an index of the common stocks and
similar securities listed on the NASDAQ stock market and is considered a broad
indicator of the performance of technology and growth companies. The MSCI EAFE
Index was created by Morgan Stanley Capital International (MSCI) and serves as
a benchmark of the performance of major international equity markets, as
represented by 21 major MSCI indexes from Europe, Australia, and Southeast
Asia. The S&P 500 Composite Index is an unmanaged group of securities that
are considered to be representative of the stock market in general.
U.S. Treasury Notes are guaranteed by the federal government as
to the timely payment of principal and interest. However, if you sell a
Treasury Note prior to maturity, it may be worth more or less than the original
price paid. Fixed income investments are subject to various risks including
changes in interest rates, credit quality, inflation risk, market valuations,
prepayments, corporate events, tax ramifications and other factors.
International investments carry additional risks, which include
differences in financial reporting standards, currency exchange rates,
political risks unique to a specific country, foreign taxes and regulations,
and the potential for illiquid markets. These factors may result in greater
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Please consult your financial professional for additional
information.
This content is developed from sources believed to be providing
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information regarding your individual situation. This material was developed
and produced by FMG Suite to provide information on a topic that may be of
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solicitation for the purchase or sale of any security.
Copyright 2020 FMG Suite.
CITATIONS:
CHART CITATIONS:
The Wall Street Journal, July 10, 2020
The Wall Street Journal, July 10, 2020
Treasury.gov, July 10, 2020
The Wall Street Journal, July 10, 2020
Treasury.gov, July 10, 2020
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