Category: Weekly Updates

Weekly Updates

Financial News and Portfolio Management Discussion through November 20th

US stocks were relatively flat over the week on rising Covid-19 concerns. The S&P 500 edged up 0.3% and the Dow declined 1.4% for the week. Abroad, the FTSE All World Ex US fell 0.9% for the week. The yield on the 10-year Treasury eased over the week to finish at 1.54% down from 1.58%. Oil prices fell 5.8% over the week to $76.10 a barrel over demand worries as areas in Europe moved back into lockdown.

Covid-19 cases are on the rise in the US and Europe. Austria announced a new nation wide lockdown and parts of Germany are also entering a new lockdown.

Japan’s economy contracted in the third quarter 0.8% on weaker exports and consumer spending.

The President signed into law the $1 trillion infrastructure package.

US Retail sales rose 1.7% in October over September.

Weekly unemployment claims declined to 268,000.

Financial News and Portfolio Management Discussion through November 13th

US stocks posted their first weekly decline since early October on stubbornly high inflation readings. The S&P 500 fell 0.3% and the Dow was dropped 0.6% for the week. Abroad, the FTSE All World Ex US rose 0.3% for the week. The yield on the 10-year Treasury climbed over the week to finish at 1.58% up from 1.45%.

US CPI rose 0.9% in October from September and is now up 6.2% over the past twelve months, its highest level since 1990.

Of companies that have reported earnings to date 81% have topped analysts’ earnings estimates.

Financial News and Portfolio Management Discussion through November 6th

US stocks continued to climb over the first week over of November on economic news, the most recent Fed meeting, and corporate earnings. The S&P 500 gained 2.0% and the Dow was up 1.4% for the week. Abroad, the FTSE All World Ex US rose 1.2% for the week. The yield on the 10-year Treasury fell again to 1.45% from 1.55%.

The Fed announced at the conclusion of their November meeting that they would begin tapering their $120 billion a month in bond purchases by reducing it $15 billion a month. The move was made so that the Fed could potentially raise the Federal Funds rate next year. They also said the supply chain bottlenecks that are driving inflation are expected to persist well into next year, but they still felt the current issues wouldn’t drive “permanently higher inflation.”

US employers added 531,000 jobs in October, topping expectations, and the largest gain in three months. The unemployment rate dropped to 4.6% from 4.8%.

China’s factory activity contracted for a second straight month and was the worst reading since February 2020.

US manufacturing activity continued to expand in October and topped estimates.

After OPEC+’s most recent meeting they agreed to continue on their gradual current pace to increase oil output.

The Bank of England decided to leave its benchmark interest rate unchanged surprising investors.

The House passed the $1 trillion infrastructure bill sending it to the President’s desk for signature.

Financial News and Portfolio Management Discussion through October 30th

US stocks ended October at a new all time high on the back of strong corporate earnings. The S&P 500 climbed 1.4% and the Dow rose 0.4% for the week. Abroad, the FTSE All World Ex US fell 0.8% for the week. The yield on the 10-year Treasury eased dropping to 1.55% over the week from 1.65%.

With roughly half of S&P 500 companies reporting earnings to date 82% have topped analysts’ earnings estimates.

Consumer confidence rose in September for the first time in three months.

Home sales rose in September more than expected and home price growth in August continued to be at a record high.

Third quarter GDP slowed to 2.0%, the weakest growth rate since the pandemic recovery began last summer.

The personal consumption expenditures price index, the Fed’s preferred inflation gauge, rose 4.4% in September from the previous year, the fastest pace in 30 years. Core prices rose 3.6%.

Financial News and Portfolio Management Discussion through October 23rd

US stocks continued their recent rebound driven by better than expected corporate earnings to hit a new record high during the week. The S&P 500 climbed 1.6% and the Dow rose 1.1% for the week. Abroad, the FTSE All World Ex US gained 0.6% for the week. The yield on the 10-year Treasury rose to 1.65%, up from 1.57% to reach its highest level since May. Oil continued its recent climb to finish the week at $83.76, its highest level in seven years.

China’s GDP grew at a 4.9% pace in the third quarter, less than expected and significantly less than the 7.9% growth seen in the second quarter.

Industrial production fell 1.3% in September due to Hurricane Ida and supply chain disruptions. An increase was expected.

Initial jobless claims fell to 290,000, a new pandemic era low.

Existing home sales rose 7% in September from August.

In public comments Fed Chief Powell said inflation risks have increased and that he is more concerned about its impacts.

Analysts now estimate that earnings rose 35% in the third quarter from last year and to date roughly 80% of S&P 500 firms have topped analysts’ earnings estimates.