Category: Weekly Updates

Weekly Updates

Financial News and Portfolio Management Discussion through January 23rd

US stocks climbed on strong corporate earnings. The S&P 500 rose 1.9% and the Dow was up 0.6% for the week both hitting new record highs.  Abroad, the FTSE All World Ex US gained 1.4% for the week.  The yield on the 10-year Treasury was flat for the week ending at 1.10%.

China posted GDP growth of 6.5% in the fourth quarter.  For the year the economy grew 2.3% despite the pandemic.  It was the only major world economy to see growth in 2020.

Initial jobless claims eased slightly to 900,000 for the past week.

Business activity in the US picked up pace to start 2021, while Europe showed an increasing risk of a second recession.

To date 88% of companies that have reported earnings have beaten earnings estimates.

Financial News and Portfolio Management Discussion through January 16th

US stocks fell over the week on disappointing economic news, a continuing surge in the coronavirus deaths and hospitalizations and amidst President Trump’s second impeachment. The S&P 500 dropped 1.5% and the Dow fell 0.6% for the week.  Small caps held up well however with eh Russell 200 up 1.5%.  Abroad, the FTSE All World Ex US was down 1.3% for the week.  The yield on the 10-year Treasury eased over the week to finish at 1.10% down from 1.13%.

US Inflation picked up modestly in December rising 0.4% and was up 1.4% over 2020.

President elect Joe Biden proposed a $1.9 trillion coronavirus relief package.

New jobless claims showed 965,000 people applied for jobless benefits, more than economists had expected and the most since March.

December retail sales fell 0.7%, more than expected.

Consumer confidence fell in December.

JP Morgan, Citigroup, and Wells Fargo all posted better than expected earnings.

Earnings for S&P 500 companies are expected to decline 6.8% for the 4th quarter.  The expected earnings decline at the start of the 4th quarter was -12.7%.

Financial News and Portfolio Management Discussion through January 9th

US stocks ended the week at a new record high on optimism over vaccines for COVID-19 and the potential for additional stimulus due to Democrats controlling congress and weaker job numbers.  The S&P 500 gained 1.8% and the Dow rose 1.6% for the week.  Abroad, the FTSE All World Ex US was up 1.9% for the week.  The yield on the 10-year Treasury surged over the week to reach its highest level since March.  It ended the week at 1.13% up from 0.93%.

The December jobs reports showed that COVID-19 is weighing on the job market as the US lost 140,000 jobs in December.  The unemployment rate held steady at 6.7%.

Factories in the US, Asia, and Europe increased their output in December pointing to a strong manufacturing sector.  US manufacturing activity hit its highest level in two years.

US auto sales ended the year on a strong note.

Saudi Arabia announced it would cut oil production by 1 million barrels a month starting next month as it’s grown concerned over a resurgent coronavirus.

Weekly jobless claims edged down slightly to 787,000 over the past week.

Financial News and Portfolio Management Discussion through January 2nd

US stocks ended the week and year at records highs on the signing of another stimulus bill.  The S&P 500 climbed 1.4%, while the Dow was up 1.3% for the week.  Abroad, the FTSE All World Ex US rose 1.3% for the week.  The yield on the 10-year Treasury yield was flat for the week ending the year at 0.93%, but down one percentage point from where it started the year.

President Trump signed the relief bill to provide additional support for consumers and businesses.

US retail sales rose 2.4% from Nov 1st to Christmas Eve compared to 2019.

The EU reached a trade agreement with the UK over its exit from the country bloc averting an abrupt exit at the end of 2020.

Home price growth picked up and home sales hit a 14 year high in October.

China finished the year with its 10th consecutive month of manufacturing growth.

IPOs set a record in 2020 with $167.2 billion raised.

Financial News and Portfolio Management Discussion through December 26th

US stocks were flat for the week as optimism over vaccines and a new US stimulus package were weighed against a new more transmittable strain of the virus and threats from the President to veto the stimulus package.  The S&P 500 dropped 0.2%, while the Dow was up 0.1% for the week.  Abroad, the FTSE All World Ex US fell 0.7% for the week.  The yield on the 10-year Treasury ticked down over the week to finish at 0.93%.

After being passed by Congress early in the week the President voiced concerns and threatened to veto the stimulus bill, however ultimately signed it on Sunday.

A new, fast spreading strain of the coronavirus prompted new travel restrictions out of the UK and increased concerns of additional business limitations.

Existing home sales eased in November, declining 2.5% from October.  The first decline in six months.

Consumer confidence fell in early December when economists expected a gain.

US GDP growth was revised up slightly for the third quarter from 33.1% to 33.4%.

Household spending dropped 0.4% in November for the first time in seven months.

New unemployment claims fell to 803,000 for the past week from the previous 892,000 level, however the numbers still remain very high by historical standards.