Month: August 2020

The Nasdaq gained 2.65 percent, while the S&P 500 Index 0.72 percent last week. The Dow Jones Industrial Average was flat and the Russell 2000 Index fell 1.77 percent. Economic data showed a strong housing rebound is underway.

Technology-related sectors were the best performers. SPDR Technology (XLK) climbed 3.57 percent. Large-cap technology lifted the sector, with Apple (AAPL) rising 8.18 percent. Apple came within 53 cents of $500 per share. Nvidia (NVDA) delivered solid earnings and rose 9.63 percent. SPDR Consumer Discretionary (XLY) climbed 1.82 percent. SPDR Communication Services (XLC) advanced 1.57 percent. Tesla (TSLA) also climbed to a new all-time high above $2000 per share.

The National Association of Homebuilders said its August homebuilders’ sentiment index matched the all-time high set in 1990. The reading comes with housing starts, building permits and existing home sales shooting past estimates in July. With people working from home and homeschooling, the demand for larger living spaces has resulted. Urban residents are also leaving cities in significant numbers, and seeking single-family housing. iShares U.S. Home Construction (ITB) climbed 4.51 percent on the week.

Initial jobless claims climbed to 1.11 million for the week ending August 15th. Continuing claims continued falling though, with state programs reporting a decline of 0.7 million to 14.8 million.

iShares MSCI EAFE (EFA) slid 0.62 percent on the week. iShares MSCI Eurozone (EZU) slipped 1.09 percent and iShares MSCI Japan (EWJ) fell 0.41 percent.

The 10-year Treasury yield fell to 0.64 percent this week. iShares 20+ Year Treasury (TLT) finished the week with a gain of 1.87 percent. iShares iBoxx High Yield Corporate Bond (HYG) rallied 0.77 percent, iShares iBoxx Investment Grade Corporate Bond (LQD) 0.75 percent and Fidelity Corporate Bond (FCOR) 0.66 percent.

Energy stocks fell on the week, despite crude oil holding steady. SPDR Energy (XLE) dipped 5.71 percent. Natural gas prices climbed due to higher temperatures around the country, but producers saw an even larger sell-off. First Trust Natural Gas (FCG) declined 8.92 percent.

The Nasdaq gained 1.00 percent on Monday, the Russell 2000 Index 0.48 percent and the S&P 500 Index 0.27 percent. The Dow Jones Industrial Average fell 0.31 percent.

SPDR Consumer Discretionary (XLY) gained 1.29 percent on the day. SPDR Real Estate (XLRE) advanced 0.89 percent, SPDR Technology (XLK) 0.67 percent and SPDR Healthcare (XLV) 0.59 percent.

The National Association of Homebuilders said its home builders’ confidence index hit its former all-time high of 78 in August. More housing data is coming on Tuesday with housing starts and building permits for July.  Analysts project increases in both from June levels. Existing home sales are out on Friday.

The minutes from the July FOMC meeting will be out on Wednesday. Economists project initial claims fell to 910,000 last week. The flash August PMIs for world economies will be out on Friday. Both surveys are expected to show expansion in July.

Bond yields dipped on Monday with the 10-year Treasury yield closing to 0.68 percent. Crude oil rose slightly to $42.81 per barrel. Natural gas fell 2 cents to $2.34 per mmBTU.

Retail earnings season kicks off in earnest on Tuesday with Wal-Mart (WMT), Home Depot (HD), Kohl’s (KSS) and Advance Auto Parts (AAP) headlining, along with Spectra Energy (SE), Agilent (A) and Cree Inc. (CREE).

On Wednesday, Lowes (LOW), Target (TGT), TJX Companies (TJX) and L Brands (L) dominate retail reports. Nvidia (NVDA) and Analog Devices (ADI) also deliver results.

Alibaba (BABA), Ross Stores (RSOT), Estee Lauder (EL), Gold Fields (GFI), Keysight Technologies (KEYS), BJ’s Wholesale Club (BJ) and The Toro Company (TTC) report on Thursday.

Deere & Co. (DE), Foot Locker (FL) and Pinduoduo (PDD) close out the week.