AAM Weekly Market Wrap – August 10, 2020

Weekly Market Wrap: Stocks rose for the fifth week in the last six as US manufacturing data was positive, jobs data was mixed and congress could not put together a new fiscal relief package.

For The Week

  • The S&P 500 added 2.45% to 3,351.28
  • Oil gained 2.36% to $41.22
  • Gold jumped 2.86% to $2,030.83
  • The US dollar slipped 0.03% at $93.41 against other major world currencies.

2020 Year-To Date for the major indexes:

  • The S&P Index +3.73%
  • The Dow Jones Index -3.87%
  • The NASDAQ Index +22.72%
  • The Russell 2000 Small cap Index -5.95%
  • EAFE International Index -8.37%
  • 10 Year Treasury Yield is 0.55%, higher for the week and lower for the year
  • 30 Year Treasury Yield is 1.22%, higher for the week and lower for the year
  • WTI Crude Oil Index -32.49%
  • Bloomberg Gold Index +33.78%
  • The Dollar Index -3.20% against other major world currencies

Monday the S&P 500 rose 23 points on moderate volume as ISM Manufacturing rose and beat expectations while construction spending fell and missed estimates.

Tuesday stocks gained 12 points on moderate volume as factory orders rose more than expected.

Wednesday the S&P 500 rose 21 points on moderate volume as ADP jobs rose but missed expectations with June’s data revised significantly higher, ISM non-manufacturing rose and beat while mortgage applications fell.

Thursday stocks rose another 21 points on moderate volume as jobless claims fell more than expected and continuing claims also fell.

Friday the markets added 2 points on moderate volume as July payrolls added 1.763 million more jobs missing expectations, average hourly earnings rose 0.2% beat estimates, unemployment fell to 10.2% which was better than expected and consumer credit use rose but missed estimates.

Mortgage rates were lower last week. The national averages as reported by Bankrate.com indicate a 15-year rate of 2.63% and a 30-year rate of 3.06%. These rates are as of 08/9/2020 and may include points.

What to watch for on the economic calendar this week:

Monday – No major data

Tuesday – Small Business Optimism / Producer Prices

Wednesday – Mortgage Applications / Consumer Prices

Thursday – Jobless Claims / Import & Export Prices

Friday – Industrial Production / Capacity Utilization / Retail Sales / Unit Labor Costs / Consumer Sentiment

Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC

August 9, 2020                                 

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