Market Perspective for May 11, 2020

The Nasdaq extended its winning streak with an increase of 0.78 percent on Monday. It has risen 2.45 percent in 2020, while the S&P 500 Index remains down 9.30 percent.

Healthcare was the best performing sector of the day climbing 1.72 percent. SPDR Technology (XLK) rose 0.66 percent. Biotechnology powered the healthcare sector. iShares Nasdaq Biotechnology (IBB) rallied 4.28 percent. SPDR S&P Biotech (XBI) popped 4.77 percent. While SPDR S&P Pharma (XPH) added 3.83 percent.

The National Federation of Independent Businesses (NFIB) will publish its small-business confidence index for April on Tuesday. Wednesday brings the producer price index. Economists see a 0.5 percent drop. On Friday, April retail sales will be reported. Analysts forecast a decline of 12.3 percent and 9.0 percent ex-autos.

Earnings season is starting to wind down. Among the large-caps reporting this week are Duke Energy (DUK), Toyota (TM), Cisco (CSCO), Norwegian Cruise Line (NCLH), Applied Materials (AMAT) and Brookfield Asset Management (BAM).

Carnival Cruise Lines (CCL) reported on Monday. It said bookings increased 600 percent after announcing it would sail again on August 1st.

Bond yields extended their rise on Monday with the 10-year yield closing at 0.73 percent, the highest since mid-April. iShares iBoxx High Yield Corporate Bond (HYG) fell 0.45 percent.

The U.S. Dollar Index rose 0.37 percent on Monday, powered by strong gains versus the yen. iShares MSCI EAFE fell 0.09 percent and iShares MSCI Emerging Markets (EEM) slid 0.65 percent.

West Texas Intermediate crude oil slipped $1.09 per barrel on Monday bringing the per barrel price to $25.08. SPDR Energy (XLE) dipped 1.75 percent.

 

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.

Investor Guide to Fidelity Funds year-to-date Model Portfolio Performance through March 31, 2014:

We are pleased to provide our model performance through March 31, 2014

Fidelity Select Sector Fund Portfolio:  +2.33%

Fidelity Straight Growth Portfolio:  +1.17%

Fidelity Balanced Growth Portfolio:  +1.63%

Fidelity Global Portfolio:  +2.25%

Fidelity Conservative Income Portfolio:  +1.54%

NTF Diversified Sector Portfolio:  +2.38%

NTF Straight Growth Portfolio:  +1.53%

NTF Balanced Growth Portfolio:  +2.38%

NTF Tax Advantage Portfolio:  +1.76%

NTF Aggressive Value Portfolio:  +4.55%

NTF Absolute/Down Market Portfolio:  -0.74%

If you would like to begin your membership to the Investor Guide to Fidelity Funds, please call us at (888) 252-5372 or visit www.mutualfundinvestorguide.com.