Click Here to view today’s Global Momentum Guide WEEKLY SECTOR MOVERS The Nasdaq rallied 6.00 percent last week, the Russell 2000 Index 5.49 percent, the S&P 500 Index 3.50 […]
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Month: May 2020
Market Perspective for May 8, 2020
The Nasdaq increased 5.95 percent this week, the S&P 500 Index 3.42 percent and the Dow Jones Industrial Average 2.48 percent. Economic data was better than expected, even though there was little good news. Additionally, with many states ending their lockdowns, a quick recovery is raising investor hopes.
Technology helped push the market higher, with SPDR Technology (XLK) gaining 6.62 percent. Additionally, SPDR Communications Services (XLC) rallied 4.67 percent. SPDR Consumer Discretionary (XLY) advanced 4.50 percent, largely due to Amazon (AMZN) and other online retailers.
SPDR Energy (XLE) rebounded 8.35 percent as oil prices stabilized in the $20 range. West Texas intermediate crude finished the week at $24.76 per barrel.
The service PMI was slightly stronger than expected in April, but down substantially as many businesses closed. The April employment report showed 20.5 million job losses, below the expected 22.1 million. The unemployment rate climbed to 14.7 percent, below the estimate of 15.2 percent. Wages soared 4.7 percent, far higher than the 0.8 consensus prediction.
The 2-year treasury yield fell to a new all-time low this week as markets began pricing in negative interest rates. Long-term bond yields went in the other direction, in part because the Federal Reserve eased back on its bond buying as the market stabilizes. The 10-year yield climbed to 1.39 percent. Rising yields sank government and investment grade bonds. iShares 20+ Year Treasury (TLT) fell 2.23 percent. Higher-yielding bonds rallied. iShares iBoxx High Yield Corporate Bond (HYG) advanced 1.33 percent. Invesco Senior Loan (BKLN) added 1.45 percent.
The U.S. Dollar Index rallied 0.71 percent this week, with most of the gains coming versus the euro. iShares MSCI Emerging Markets (EEM) rallied 4.24 percent for the week, while iShares MSCI EAFE (EFA) added 2.66 percent.
Shares of Shopify (SHOP) jumped as much as 20 percent on the week after it said profits climbed 210 percent. The firm provides e-commerce solutions to small businesses.
Nintendo, Activision and Electronic Arts all beat earnings as video game playing increased during the lockdown.
The Investor Guide to Fidelity Funds for May 2020
The Investor Guide to Fidelity Funds for May 2020 is Coming Soon! May Data Files Are Posted Below Market Perspective: Domestic Companies Lead the Rebound Equities have rallied over the […]
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Market Perspective for May 4, 2020
Equities started the week on a positive note. The Nasdaq increased 1.23 percent to lead the major indexes as investors remain bullish on the technology sector. The S&P 500 gained 0.42 percent, while the Dow Jones Industrial Average returned 0.11 percent.
SPDR Energy (XLE) rebounded, gaining 3.46 percent on the day. West Texas Intermediate crude gained $1.50, to close at $21.28 per barrel.
Technology also performed well on the day. SPDR Technology (XLK) climbed 1.33 percent. Internet-related companies pulled the sector higher. First Trust Dow Jones Internet (FDN) climbed 1.47 percent.
iShares Nasdaq Biotechnology (IBB) rallied 3.02 percent and SPDR S&P Biotech (XBI) popped 5.06 percent. Both funds made new 52-week highs last week.
The May employment report will be released on Friday. The consensus predicts 22 million jobs were lost last month and the unemployment rate will have increased to 15 percent. Average hourly earnings are forecast to increase 0.8 percent, double last month’s figure.
The 10-year yield edged down to 0.64 percent on Monday. It has traded between 0.60 percent and 0.80 percent for most of April. The 30-year bond yield increased to 1.30 percent.
The U.S. Dollar Index rose 0.56 percent. The dollar also rallied versus the offshore Chinese yuan after the U.S. government released a report claiming China covered up the severity of the coronavirus pandemic.
Earnings season continues with many blue-chip companies reporting. Allergan (AGN), Newmont (NEM), Regeneron (REGN), Disney (DIS), Electronic Arts (EA), Activision (ATVI), Occidental Petroleum (OXY), Illinois Tool Works (ITW) and KLA Tencor (KLAC) deliver results on Tuesday.
Wednesday brings PayPal (PYPL), CVS Health (CVS), General Motors (GM), Zoetis (ZTS) and Square (SQ).
Bristol-Myers Squibb (BMY), Roku (ROKU), Booking.com (BKNG), Baidu (BIDU), Hilton (HLT), Fidelity National Information Services (FIS, Danaher (DHR), Trade Desk (TTD) and Becton Dickinson (BDX) report.
The week closes out with Exelon (EXC), PPL Corp (PPL), Kimco Realty (KIM), Noble Energy (NE), Sabre (SABR) and Ventas (VTR).
Global Momentum Guide for May 4, 2020
Click Here to view today’s Global Momentum Guide WEEKLY SECTOR MOVERS The MSCI EAFE Index increased 2.97 percent last week and the Russell 2000 Index climbed 2.22 percent. The […]
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