AAM Weekly Market Wrap – August 30, 2020

Weekly Market Wrap: Stocks rose for the eighth week in the last nine as positive economic data and vaccine news as well as dovish Fed comments pushed the S&P 500 to new all-time highs.

For The Week

  • The S&P 500 jumped 3.26% to 3,508.01
  • Oil gained 1.49% to $42.97
  • Gold rose 1.35% to $1,965.01
  • The US dollar fell 0.95% at $92.34 against other major world currencies.

2020 Year-To Date for the major indexes:

  • The S&P Index +8.58%
  • The Dow Jones Index +0.40%
  • The NASDAQ Index +30.35%
  • The Russell 2000 Small cap Index -5.40%
  • EAFE International Index -5.70%
  • 10 Year Treasury Yield is 0.73%, higher for the week and lower for the year
  • 30 Year Treasury Yield is 1.51%, higher for the week and lower for the year
  • WTI Crude Oil Index -29.63%
  • Bloomberg Gold Index +29.45%
  • The Dollar Index -4.31% against other major world currencies

Monday the S&P 500 jumped 34 points on moderate with no major data reported.

Tuesday stocks added 12 points on moderate volume as consumer confidence fell and missed estimates, new home sales rose and beat, FHFA home prices rose and Shiller home prices rose a little less than expected.

Wednesday the S&P 500 gained 35 points on moderate volume as mortgage applications fell and durable goods orders rose and beat expectations.

Thursday stocks added 6 points on moderate volume as jobless claims were a little higher than expected, continuing claims continued lower, 2Q GDP was revised slightly better than expected (but still awful) and pending home sales rose and beat expectations.

Friday the markets gained 23 points on moderate volume as Midwest manufacturing fell slightly, PCE prices rose a little less than expected, both personal income and personal spending rose and beat expectations while consumer sentiment also rose and beat expectations.

Mortgage rates were mixed last week. The national averages as reported by Bankrate.com indicate a 15-year rate of 2.59% and a 30-year rate of 3.13%. These rates are as of 08/30/2020 and may include points.

What to watch for on the economic calendar this week:

Monday – No major data

Tuesday – ISM Manufacturing / Construction Spending

Wednesday – Mortgage Applications / Factory Orders / Auto Sales / ADP Employment

Thursday – Jobless Claims / ISM Non-Manufacturing / Worker Productivity and Labor Costs

Friday – August Jobs Report

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

August 30, 2020                              

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