|Weekly and Year-To-Date Performance|
|INDEX||12/31/2019||07/31/2020||08/07/2020||% Change Week||% Change YTD|
|Dow Jones Industrial Average||28,538.44||26,428.32||27,433.48||3.80%||-3.87%|
|Russell Mid-Cap Index||2,381.81||2,262.22||2,313.93||2.29%||-2.85%|
|Russell Small-Cap Index||1,668.46||1,474.56||1,567.89||6.33%||-6.03%|
August 7th, 2020
Dear Friends –
The equity markets finished the week with solid gains across the board. For the week the Dow S&P 500 and the Nasdaq gained 3.8%, 2.45% and 2.78%. The Russell Mid-Cap, Small-Cap and MSCI EAFE indexes added 2.3%, 6.3% and 2.5%.
Stocks opened the week to the upside Monday. The tech sector continued to pace the markets with shares of Microsoft gaining almost 6% on reports the company is in talks to buy the social media company TikTok. Shares of Apple continued to move higher after their stock split announcement closing up 2.5%. In economic news the ISM manufacturing index came in above expectations at 54.2 and new orders hit 61.5. The Dow finished with a gain of 236 points or 0.9%, at 26,664. The S&P and the Nasdaq added 0.7% and 1.5%. The 10-year Treasury note closed up 1.5 basis points to settle yielding 0.549%.
The markets moved higher again Tuesday finishing with gains across the board. The gains came as negotiations on the latest COVID-19 stimulus bill continued on Capitol Hill with both sides reporting progress. Energy, real estate and consumer staples led the S&P higher adding 2.45%, 1.36% and 1.36%. Healthcare and financials were the only sectors to close lower falling 0.45% and 0.44%. The technology sector made a modest gain as Netflix, Apple and Amazon rose and Microsoft, Alphabet and Facebook fell. The Dow closed up 164 points or 0.62%, at 26,828. The S&P and the Nasdaq added 0.36% and 0.35%. The 10-year Treasury note fell two basis points to close yielding 0.539%.
Stocks closed higher on Wednesday following some positive news on earnings and the search for a COVID-19 vaccine. Shares of Disney climbed 8.8% after reporting earnings that came in above expectations. The company was able to turn a profit of eight cents per share despite the COVID shutdown, analysts were expecting a loss of 64 cents. Novavax reported progress with their phase one vaccine trial that is generating positive immune responses with patients. Shares of the company gained 10.4%. In economic news private payrolls in the U.S. grew by just 167,000 last month, well short of estimates and the 4.3 million new jobs in June. The Dow added 373 points or 1.4%, to settle at 27,202. The S&P and the Nasdaq added 0.6% and 0.4%.
The markets rose again Thursday as the major indexes extended their winning streaks. The Dow and the S&P have made gains in five straight session and the Nasdaq in seven. The Nasdaq closed above the 11,000 mark for the first time as tech continues to lead the markets. The communications services, technology and utilities sectors led the S&P gaining 2.45%, 1.46% and 0.52%. Energy, healthcare, materials and financials closed lower. In economic news weekly jobless claims came in ahead of expectations. The Dow closed up 185 points or 0.7%, to settle at 27,387. The S&P and the Nasdaq added 0.6% and 1%.
Stocks closed mixed but with little change overall Friday. In economic news the economy added a little over 1.76 million jobs in July, beating the consensus expectations of 1.4 million. The overall unemployment rate fell to 10.2%. While positive the pace of jobs growth fell well short of the gains in June, which demonstrated the issues with cases surging in parts of the country. The executive orders from the Trump administration banning Chinese apps TikTok and WeChat were signed as expected on Thursday and are set to go into effect in 45 days. The fear of retaliation from China weighed on the tech sector as shares of Apple and Microsoft fell 2.27% and 1.8%. The sector closed down 1.56% overall. Eight of the 11 S&P sectors closed with gains led by financials, which added 2.2%. The Dow finished up 47 points or 0.17%, at 27,433. The S&P added 0.06% and the Nasdaq was off 0.87%. Treasury yields ticked higher on the jobs report with the 10-year closing up three basis points at 0.566%.