MARKET STATISTICS
Weekly and Year-To-Date Performance
INDEX 12/31/2019 03/06/2020 03/13/2020 % Change Week % Change YTD
 Dow Jones Industrial Average 28,538.44 25,864.78 23,185.62  -10.36% -18.76%
 S&P 500 3,230.78  2,972.37  2,711.02  -8.79% -16.09%
 Nasdaq Composite 8,972.60  8,575.62  7,874.23  -8.18% -12.24%
 Russell Mid-Cap Index 2,381.81 2,137.32  1,856.56  -13.14% -22.05%
 Russell Small-Cap Index  1,668.46 1,450.83  1,208.77  -16.68% -27.55%

 

March 13th, 2020

Dear Friends –

The equity markets closed out the week with steep losses across the board as the torrent of volatility continued as the globe fights the spread of the coronavirus. For the week the Dow, S&P 500 and the Nasdaq fell 10.36%, 8.79% and 8.18% respectively.  The Russell Mid-Cap, Small-Cap and MSCI EAFE indexes were off 13.1%, 16.68% and 14.3% respectively.

Stocks sold off sharply Monday in the worst day for the major indexes in over 10 years. The selling began when over the weekend an oil price war broke out between Saudi Arabia and Russia over crude oil production and pricing which roiled the oil markets and led to crude prices falling over 30% at the low before ending down 24% at $31.13 per barrel.  The production dispute added another level of uncertainty to the markets that are already fighting with the effects of the coronavirus and the equity markets took another leg down as a result.  With the markets dropping treasury yield levels continued to fall and the 10-year note fell below 0.5% before recovering to finish down 12 basis points at 0.57%.  The Dow finished down 2,014 points or 7.8%, at 23,851.  The S&P and the Nasdaq were off 7.6% and 7.3%.

The market rallied Tuesday halving the losses from Monday’s session in another volatile session.  The Dow opened up over 900 points, then fell into negative territory two hours into the session before regaining its footing to close up over 1,100 points.  Crude prices and Treasury yields rebounded as well with oil gaining over 10% to settle at $34.36 per barrel and the 10-year note closing up about 20 basis points to settle near 0.8%.  Reports that the White House and Congress are discussing fiscal stimulus efforts to help combat the economic effects of the coronavirus helped lift investors spirits.  Shares of JPMorgan and Home Depot led the Dow with gains over 7%, while the headline technology leaders known as the FAANG group all gained over 4.5%.  The Dow closed up 1,167 points or 4.89%, at 25,018.  The S&P and the Nasdaq added 4.94% and 4.95%.

Stocks turned lower again Wednesday as the virus continued to spread and the lack of a consensus on the government’s efforts to come up with a stimulus package added to the uncertainty.  The major indexes moved lower from the open as coronavirus cases worldwide surpassed 100,000 and later when the World Health Organization declared the outbreak an official global pandemic.  Central banks are stepping up actions with the Bank of England cutting its benchmark rate by 50 basis points and the Federal Reserve increasing capital to banks through overnight repo lending.  The Dow finished down 1,465 points or 5.86%, at 23,553 and now stands more than 20% below its record closing high last month.  The S&P and the Nasdaq were off 4.89% and 4.7%.  Treasury yield rose again with the 10-year note gaining six basis points to settle at 0.82%.

The markets fell sharply lower Thursday turning in one of the worst days for the Dow since 1987.  The announcement of precautionary efforts from the White House in a formal address Thursday evening fell on deaf ears and the markets opened with heavy losses and finished near the lows of the session.  The major averages got a brief lift in the middle of the session after the Fed announced a series of measures that will inject about $1.5 trillion in to the overnight repo markets Thursday and Friday, as well as expanding the types of securities it will purchase to the tune of another $1 trillion.  The Dow ended down 2,353 points or 9.99%, at 21,201.  The S&P and the Nasdaq were off 9.5% and 9.4%.  Crude prices fell 5.7% to settle at $31.10 per barrel.  The 10-year Treasury note moved higher for the third straight session rising about seven basis points to settle yielding 0.89%.

Stocks bounced back on Friday with the Dow clawing back all but 368 points of Thursday’s decline.  The major indexes shot higher at the open with the S&P 500 futures being paused at limit up before the open gaining 5%.  Central banks continued to step in with Germany, Japan and South Korea all taking steps to stimulate their respective economies.  The Treasury markets have responded in kind with the benchmark 10-year note closing up over 14 basis points to close near 1.00%.  The 30-year bond added 20 basis points to settle near 1.6%.  Oil prices ticked higher closing up 0.73% to settle at $31.73 per barrel.  The major indexes moved to the highs of the session at the close as President Trump announced the official declaration of a state of emergency over the coronavirus pandemic, which will open up additional financial and emergency measures aimed at helping stem the spread of the virus.  The Dow closed up 1,985 points or 9.36%, to settle at 23,186.  The S&P and the Nasdaq gained 9.3% and 9.34%.

Sonata