Category: Weekly Updates

Weekly Updates

Financial News and Portfolio Management Discussion through July 4th

Global stocks rose over the week on positive economic news and businesses reopening. The S&P 500 jumped 4.0% and the Dow surged 3.2% for the week.  Abroad, the FTSE All World Ex US climbed 2.6% for the week.  The yield on the 10-year Treasury eased to finish the week at 0.67% up slightly from 0.64% the previous week.

The unemployment rate dropped to 11.1% in June from 13.3% in May and the US economy added 4.8 million jobs in June as business re-openings led to a surge of rehiring, surpassing expectations.

US auto sales are projected to fall by about a third in the second quarter, though the decline wasn’t as bad as feared.

ISM’s June manufacturing survey rose into expansion territory, higher than estimates.  Similar improvement in manufacturing was found in many countries in Europe and Asia in June.

Minutes from the Fed’s June meeting showed it expected to keep interest rates near zero through at least 2022.

Fed chair Powell said in senate testimony that the economy has improved faster than expected, but significant risks remain.

Since the virus began significantly impacting the US the Fed has implemented nine different emergency lending programs to support the economy.

Financial News and Portfolio Management Discussion through June 27th

Stocks fell over the week as new COVID-19 cases surged in the US driving investors’ concerns that the reopening of businesses across the US may be slowed.  The S&P 500 fell 2.9% and the Dow sank 3.3% for the week.  Abroad, the FTSE All World Ex US was down 1.1% for the week.  The yield on the 10-year Treasury eased to finish the week at 0.64% from 0.70% the previous week.

Survey data showed business activity declined at a more gradual rate around the globe suggesting the recent economic weakness could be bottoming out.

US jobless claims held steady with 1.5M new claims.

The Fed capped the amount of dividends banks can pay out and suspended their ability to buy back shares to ensure they had sufficient liquidity to meet potential losses arising from the coronavirus.

Consumer spending rose 8.2% in May, a record.

Financial News and Portfolio Management Discussion through June 13th

Stocks pulled back on concerns about a resurgence in infections. The S&P 500 fell 4.7% and the Dow dropped 5.5% for the week.  Abroad, the FTSE All World Ex US declined 3.6% for the week.  The yield on the 10-year Treasury sank as investors moved back to safe haven investments.  It finished the week at 0.70% down from 0.90%, the previous week.

The organization responsible for dating recessions announced the US entered a recession in February ending the longest US expansion in modern history.

At the conclusion of the Fed’s June meeting they stated they planned to not raise interest rates through 2022 and to continue their current pace of Treasury and mortgage backed security purchases.  They are also looking at other ways to support the economy.

Approximately 1.5 million people filed initial jobless claims last week continuing a downward trend.  The total number of American getting unemployment benefits ticked down slightly to 20.9 million.

The UK said April GDP was down 25% from a year earlier.

OPEC agreed to extend current production cuts through July.

Financial News and Portfolio Management Discussion through June 6th

Stocks continued to surge to start June on positive economic news and optimism over the reopening of global economy. The S&P 500 gained 4.9% and the Dow jumped 6.8% for the week.  The S&P 500 is just 1.1% short of where it started the year.  Abroad, the FTSE All World Ex US rose 7.4% for the week.  The yield on the 10-year Treasury rose as investors moved away from safe havens finishing the week at 0.90% up from 0.65%, the previous week.

US employers unexpectedly added 2.5 million jobs in May, the most on record, while a loss of 8.3 million was expected. The unemployment rate fell from 14.7% in April to 13.3% in May.  Economists had estimated it could reach 20%.

The total number of Americans now receiving unemployment benefits rose to 21.5 million.

US manufacturing continued to contract in May, but the pace of contraction slowed.

Manufacturing activity in China expanded in May, however evidence suggests growth is starting to stall.

China’s services sector returned to strong growth in May, while other developed countries, including the US, still declined, but at a lesser pace.

The Fed expanded the municipalities allowed to borrow directly from the Fed’s lending program.

The ECB significantly increased its bod buying program to $1.52 trillion moving it more in line with the Fed.

Financial News and Portfolio Management Discussion through May 30th

Stocks posted a second straight week and month of gains on optimism over the US and the world reopening their economies. The S&P 500 gained 3.0% and the Dow jumped 3.9% for the week.  Abroad, the FTSE All World Ex US rose 4.5% for the week.  The yield on the 10-year Treasury was relatively flat ending the week at 0.65%.

The EU is working on a $2 trillion coronavirus response plan that would significantly deepen the country bloc’s economic union.

New jobless claims filed last week were down to 2.1 million continuing a downward trend, but still well above levels from before the pandemic.  The total number of workers receiving unemployment benefits fell for the first time since February.

US GDP was revised down to a 5% contraction in the first quarter.

Consumer spending fell a record 13.6% in April.

Consumer sentiment improved in May over April.