|Weekly and Year-To-Date Performance|
|INDEX||12/31/2019||05/08/2020||05/15/2020||% Change Week||% Change YTD|
|Dow Jones Industrial Average||28,538.44||24,331.32||23,685.42||-2.65%||-17.01%|
|Russell Mid-Cap Index||2,381.81||2,003.59||1,921.35||-4.10%||-19.33%|
|Russell Small-Cap Index||1,668.46||1,345.19||1,323.54||-1.61%||-20.67%|
May 15th, 2020
Dear Friends –
The equity markets reversed course this week as concerns over restarting the economy led to selling. For the week the Dow, S&P 500 and the Nasdaq fell 2.65%, 2.26% and 1.35% respectively. The Russell Mid-Cap, Small-Cap and MSCI EAFE indexes were off 4.1%, 1.6% and 2.96% respectively.
Stocks finished mixed Monday as leadership in the tech sector propelled the Nasdaq to its sixth consecutive day of gains. Shares of Apple, Amazon and Microsoft gained 1.57%, 1.24% and 1.1% to lead the Nasdaq higher. The Dow lagged behind as share of American Express, Boeing and Caterpillar fell 4.7%, 3.4% and 3.1%. Reports out over the weekend that cases of COVID-19 rose in several countries that have made efforts to reopen economies weighed on investors and the broader markets in general. The Dow closed down 109 points or 0.45%, at 24,222. The S&P and the Nasdaq added 0.02% and 0.78%. The 10-year Treasury note gained about four basis points to settle yielding 0.72%. Crude prices fell 2.4% to settle at $24.14 per barrel.
The markets moved lower Tuesday as hopes for a swift opening for the economy might be fading. With several members of the Coronavirus task force testifying remotely before the Senate urging caution the markets turned lower to snap a six-day winning streak for the Nasdaq. Real estate, industrials and financials led on the downside falling 4.25%, 2.84% and 2.67%. The tech sector cooled-off from its recent run as shares of Microsoft, Amazon, Alphabet and Apple finished down 2.27%, 2.16%, 1.96% and 1.14%. The Dow closed down 457 points or 1.89%, at 23,765. The S&P and the Nasdaq fell 2.05% and 2.06%. Treasury yields were unchanged. Crude prices climbed over 6% on reports of further production cuts from Saudi Arabia.
Stocks closed lower again Wednesday as the concerns over the economy continued. Fed Chair Powell sounded a cautionary note about reopening the economy and the markets moved to the lows of the session following the comments. In economic news prices at the producer level fell 1.3% in April, well over the 0.5% consensus expected by economists. The energy and financial sectors led the declines falling 4.4% and 3%. Shares of American Express, Raytheon and Dow Inc all fell 4.8% or more to lead the Dow’s declines. The Dow closed down 516 points or 2.2%, at 23,247. The S&P and the Nasdaq fell 1.7% and 1.6%. Crude prices finished down 2% and the 10-year Treasury was off four basis points at 0.648%.
The markets traded higher Thursday in a back-and-forth session that saw stocks close near the highs of the day. The major indexes opened lower as another downbeat employment report furthered concerns about the economy and the uphill battle ahead to get Americans back to work. The Dow fell as much as 450 points at the low after weekly jobless claims came in at 2.9 million last week, over 200,000 higher than expected. Financials, consumer discretionary and technology led the S&P higher with gains of 2.64%, 1.3% and 1.26%. The Dow finished up 377 points or 1.6%, at 23,625. The S&P and the Nasdaq added 1.15% and 0.9%. Crude prices rallied over 9% to settle at just under $28 per barrel. Treasury yields fell on the unemployment data with the 10-year note off over three basis points yielding 0.62%.
Stocks closed the week Friday with little change in another volatile session. The major indexes opened sharply lower again but clawed back from the lows to settle with modest gains. The retail sector fell 1.4% at the lows before rallying to a gain of over 2% as new data showed consumer sentiment coming in well ahead of expectations. The raw data out of the retail sector however, showed sales fell a record 16.4% last month. Financials continued to be a drag as the sector closed down 0.7% as shares of JPMorgan and Bank of America fell 1.85% and 1.24%. Communications services and consumer discretionary led on the upside with gains of 1.26% and 1.06%. The Dow finished up 60 points or 0.25%, at 23,685. The S&P and the Nasdaq gained 0.39% and 0.61%. Crude prices closed up 6%. The 10-year Treasury note was off two basis points yielding 0.6%.