|Weekly and Year-To-Date Performance|
|INDEX||12/31/2019||10/29/2020||11/06/2020||% Change Week||% Change YTD|
|Dow Jones Industrial Average||28,538.44||26,603.50||28,323.40||6.87%||-0.75%|
|Russell Mid-Cap Index||2,381.81||2,297.36||2,468.30||7.44%||3.63%|
|Russell Small-Cap Index||1,668.46||1,530.76||1,644.16||7.41%||-1.46%|
November 6th, 2020
Dear Friends –
The equity markets finished out the week with robust gains across the board as investors waited for the final results of the election. For the week the Dow, S&P 500 and the Nasdaq gained 6.9%, 7.3% and 9.5% respectively. The Russell Mid-Cap, Small-Cap and MSCI EAFE indexes added 7.4%, 7.4% and 7.9% respectively.
Stocks shot higher to open the week Monday rebounding from last week’s losses. The Dow and the S&P opened higher and finished near the highs of the session while relative weakness in mega-cap tech names weighed on the Nasdaq. All 11 S&P sectors finished higher led energy, materials and industrials up 3.67%, 3.4% and 2.74%. Technology and communications services rounded out the bottom of the gains up 0.3% and 0.09%. The Dow closed up 423 points or 1.6%, at 26,925. The S&P and the Nasdaq added 1.23% and 0.42%. Treasury yields were largely unchanged with the 10-year note closing down one basis point yielding 0.845%. Crude prices gained 2.8% to close at $36.81 per barrel.
The markets continued to rally on Tuesday with the major indexes closing with heady gains across the board. The Dow gained as much as 700 points at the highs of the session and the S&P put together the second-best presidential Election Day gain ever rising 1.8%. Ten of the 11 S&P sectors finished higher led by industrials, financials and consumer discretionary with gains of 2.9%, 2.2% and 2.03%. Energy was the only sector to close lower falling 0.75% despite crude prices rising by over 2%. The Dow finished up 555 points or 2.06%, at 27,480. The Nasdaq gained 1.85%. The 10-year Treasury note rose four basis points to settle at 0.89%, its highest level since early June.
Stocks moved higher again on Wednesday as investors digested the election results. With all signs pointing to a divided Congress and a likely change in the White House the major markets shot higher out of the gate with the Dow gaining over 800 points at its high. The mega-cap tech names which have lagged in the past month, rallied on the results leading the Nasdaq to a 3.9% gain. The healthcare sector led the S&P with a gain of 4.45% followed by communication services and technology with gains of 4.25% and 3.83%. The value-oriented sectors that led early in the week lagged with materials, utilities, financials and industrials closing lower. The Dow finished well off the highs with a gain of 368 points or 1.3%, at 27,848. The S&P added 2.2%. Treasury yields fell sharply with the 10-year note closing down 11 basis points at 0.77%. Crude prices gained 4% as inventory levels fell.
The steady drumbeat higher for the markets continued Thursday with another big round of gains. The return of the tech trade continued with the Nasdaq on pace to gain 9% for the week. On the session the tech sector gained 3.12% as shares of Apple, Netflix, Microsoft and Amazon rose 3.55%, 3.38%, 3.2% and 2.5%. The Fed left interest rates unchanged at the conclusion of their two-day meeting noting that economic activity remains well-below levels prior to the pandemic. The major indexes traded higher at the open and reacted with little change following the Fed’s decision. The Dow closed up 543 points or 1.95%, at 28,390. The S&P and the Nasdaq gained 1.95% and 2.59%. The 10-year Treasury note closed nearly unchanged down about one basis point following the Fed’s decision yielding 0.766%. Crude prices ticked lower falling 1% to close just under $39 per barrel.
Stocks finished mixed but with little change heading into the weekend Friday. With the final election results still in the balance but the chances of a divided government looking like the most likely outcome the markets took a bit of a break after a huge week for stocks. The rising COVID case numbers also might have given investors pause, as the U.S. hit new daily records this week. In economic news the U.S. added 638,000 jobs in October and the overall unemployment rate fell to 6.9%, both of which came in ahead of expectations. Energy and financials led on the downside falling 2.14% and 0.81%, while consumer staples and technology led on the upside gaining 0.44% and 0.3%. The Dow finished down 67 points or 0.24%, at 28,323. The S&P was off 0.03% and the Nasdaq added 0.04%. The 10-year Treasury note bounced back closing up four basis points yielding 0.82%. Crude prices closed down 4% at just above $37 per barrel.