|Weekly and Year-To-Date Performance|
|INDEX||12/31/2019||02/14/2020||02/21/2020||% Change Week||% Change YTD|
|Dow Jones Industrial Average||28,538.44||29,398.08||28,992.41||-1.38%||1.59%|
|Russell Mid-Cap Index||2,381.81||2,466.36||2,445.53||-0.84%||2.68%|
|Russell Small-Cap Index||1,668.46||1,687.59||1,678.60||-0.53%||0.61%|
February 21st, 2020
Dear Friends –
The equity markets closed lower on the week as concerns over the impact of the coronavirus led to selling. For the week the Dow, S&P 500 and the Nasdaq fell 1.38%, 1.25% and 1.59% respectively. The Russell Mid-Cap, Small-Cap and MSCI EAFE indexes were off 0.84%, 0.53% and 1.36% respectively.
The markets opened the week Tuesday following the long holiday weekend mixed, but mostly lower. The major indexes started in the red after Apple warned late Monday that it does not expect to meet its quarterly revenue numbers due to the effects of the coronavirus. Shares of the world’s largest company closed well off the lows of the session but still down 1.8%. The Nasdaq overall closed up overall as broad-based gains from Amazon, Microsoft, Facebook and Tesla helped offset Apple’s loss. Apple’s warning hit key suppliers of the company and weighed on the semiconductor group. Financials, energy and industrials led the S&P lower falling 0.89%, 0.83% and 0.56%. Utilities, communications services and consumer discretionary closed with gains. The Dow closed down 166 points or 0.56%, at 29,232. The S&P was off 0.29% and the Nasdaq added 0.02%. The benchmark 10-year Treasury note fell four basis points to settle at 1.544%.
Stocks moved higher Wednesday following reports out of China showing the pace of the new coronavirus cases slowing. Apple’s shares bounced back to finish up 1.5% to lead the tech sector to a gain of 1.1%. Energy led the S&P higher rising 1.32% as oil prices climbed over 2% on the reports out of China. In economic news the producer price index, a gauge of inflation at the wholesale level, jumped by 0.5% in January, the largest one-month increase since October 2018. In other news the release of the minutes from the most recent Fed meeting showed the committee focusing on the impact of the coronavirus but also consensus that rates will remain unchanged as they monitor the situation. The Dow closed up 116 points or 0.87%, at 29,348. The S&P and the Nasdaq added 0.47% and 0.4%.
The markets fell Thursday but closed well off the lows of the session. The major indexes opened with little change but fell precipitously in what looks like a technical selloff as the markets are coming to terms with the economic fallout from the coronavirus. While the reports of the slowing spread of the virus are encouraging the impact from an economic and earnings perspective is starting to come to light. Treasury yields fell on the news as investors looked to safer assets. The benchmark 10-year Treasury note fell five basis points to close yielding 1.514%. Seven of the 11 S&P sectors closed lower led by technology, healthcare and communications services, which fell 1.01%, 0.62% and 0.61%. Real estate and materials led the gains settling up 1.15% and 0.32%. In economic news weekly jobless claims were in-line with estimates and a gauge of business activity in the Philadelphia Fed region posted a huge gain from the January reading. The Dow fell as much as 388 points at the low before closing down 128 points or 0.44%, at 29,220. The S&P and the Nasdaq were off 0.38% and 0.67%.
Stocks fell again Friday as another round of reports showed the coronavirus expanding in China and abroad. The major indexes moved lower and cemented their first weekly loss in three weeks on the news. Technology, consumer discretionary and communication services led the S&P lower falling 2.25%, 1.63% and 1.4%. Real estate, consumer staples and healthcare closed up 0.38%, 0.28% and 0.03%. The technology sector was weighed down as shares of Microsoft, Amazon, Apple and Alphabet fell 3.16%, 2.65%, 2.26% and 2.18%. The Dow finished down 228 points or 0.8%, at 28,992. The S&P and the Nasdaq were off 1.1% and 1.8%. The 10-year Treasury note closed down seven basis points to settle yielding 1.453%. Crude oil prices settled down about 1% at $53.38 per barrel.