|Weekly and Year-To-Date Performance|
|INDEX||12/31/2020||12/31/2020||01/08/2021||% Change Week||% Change YTD|
|Dow Jones Industrial Average||30,606.48||30,606.48||31,097.97||1.61%||1.61%|
|Russell Mid-Cap Index||2,743.05||2,743.05||2,830.14||3.17%||3.17%|
|Russell Small-Cap Index||1,974.85||1,974.85||2,091.65||5.91%||5.91%|
January 8th, 2021
Dear Friends –
The equity markets opened the year with solid gains this week despite continued concerns over COVID-19 and chaos in Washington D.C. For the week the Dow, S&P and the Nasdaq gained 1.61%, 1.83% and 2.43% respectively. The Russell Mid-Cap, Small-Cap and MSCI EAFE added 3.2%, 5.9% and 3.8% respectively.
Stocks opened the week and the new year to the downside Monday. The major indexes fell sharply as the fears over the new COVID strain are rising around the globe, as well as the uncertainty surrounding the Georgia runoff elections. The Dow fell as much as 700 points at the low as shares of Coca-Cola and Boeing led the declines falling 3.8% and 3.5%. Ten of the 11 S&P sectors finished in the red with only healthcare managing a slight gain. The continued spread of the new COVID strain is also giving investors pause as the late Monday the UK announced another country-wide lockdown order. The Dow finished down 383 points or 1.3%, at 30,224. The S&P and the Nasdaq were both off 1.5%. The 10-year Treasury note was down one basis point to settle yielding 0.9%. Crude prices finishing down 1.9%.
The markets bounced back Tuesday closing with gains across the board. Boeing led the Dow higher gaining 4.4% a day after leading the declines. Ten of the 11 S&P sectors closed with gains led by the energy sector which closed up 4.5% on rising oil prices. Crude prices shot higher by nearly 5% to close just under $50 per barrel after Saudi Arabia announced a surprise 1 million barrel per day production cut. In economic news the ISM manufacturing index hit 60.7 in December, its best level since August 2018. The Dow finished up 168 points or 0.55%, at 30,392. The S&P and the Nasdaq gained 0.71% and 0.95%. The 10-year Treasury note rose five basis points to settle yielding 0.944%.
Stocks finished mixed but mostly higher Wednesday. The Dow and the S&P opened with solid gains following the election results in the Georgia senate runoff but lost steam as chaos broke out in D.C. as pro-Trump rioters stormed the Capitol building. Treasury yields shot higher with the 10-year note rising 10 basis points to settle yielding 1.057%. Financials and value-oriented stocks up and down the capitalization spectrum rose on the day. Shares of Wells Fargo, Goldman Sachs and JPMorgan gained 7.1%, 5.4% and 4.7%. The Russell 2000 Small-Cap value index gained 5.3%. The Nasdaq was led lower by weakness in the tech sector as shares of Apple, Netflix, Amazon and Facebook fell 3.4%, 3.9%, 2.5% and 2.8%. The Dow finished up 438 points or 1.4%, at 30,829. The S&P gained 0.6%. The Nasdaq closed down 0.6%. Crude prices closed up 1.4%.
The markets moved higher again Thursday with the technology sector leading the way as all three major indexes finished at record highs. One day after lagging the rest of the market the tech sector bounced back to lead the major indexes as shares of Tesla rose for the 10th straight session and semiconductors rallied. In economic news the services sector rose at a faster than expected pace as new orders picked up last month. Elsewhere weekly jobless claims held steady from a week ago with another 787,000 new claims. The Dow closed up 212 points or 0.69%, at 31,041. The S&P and the Nasdaq added 1.48% and 2.56%. The 10-year Treasury note rose three basis points to settle yielding 1.08%. Crude prices ticked higher closing up 0.45% at just over $51 per barrel.
Stocks closed out the week to the upside Friday in a back-and-forth session. The major indexes moved lower in the early going following a disappointing reading from the monthly unemployment report. The economy lost 140,000 jobs in December versus the consensus expectation which was calling for a gain of 50,000 jobs. The overall unemployment rate remained unchanged at 6.7%. The major indexes moved to the lows in the session following comments from West Virginia Democratic Senator Joe Manchin who said he would not support further stimulus payments. He would later clarify those remarks but the episode highlighted the challenges ahead for Democrats even after winning the Senate majority this week. Seven of the 11 S&P sectors closed higher led by consumer discretionary, real estate and utilities. The more cyclical materials, industrials and energy sectors led on the downside. The Dow finished up 57 points or 0.18%, at 31,098. The S&P and the Nasdaq added 0.55% and 1%. Treasury yields continued to rise with the 10-year note adding another four basis points to close yielding just under 1.12%. Crude prices climbed over 3% to settle at $52.50 per barrel.