Stocks rebounded last Monday with each of the benchmark indexes gaining value, led by the Russell 2000, followed by the Global Dow, the Dow, the S&P 500, and the Nasdaq. Treasury yields fell while the dollar and crude oil prices advanced. It is unclear what drove the market uptick. Some analysts suggest investors may see fiscal relief coming shortly after the election, while others proffer that the market gains were nothing more than dip-buying following last week’s selloff. Each of the major market sectors ended the day in the black, with energy and materials each advancing.
Equities continued to rally last Tuesday. Election day saw the small caps of the Russell 2000 jump up while each of the other benchmark indexes gained as well. Treasury yields climbed as banks and financials posted solid gains. Although crude oil prices rose, overall energy was the only major sector to lose value last Tuesday. In addition to financials, consumer discretionary and industrials each gained respectively.
Communication services, technology, health care, and consumer discretionary sectors posted robust gains, pushing market indexes higher last Wednesday. Although the election had yet to be officially decided, investors may be anticipating a fiscal stimulus package, which would provide more resources for investment. The Nasdaq was the big winner on the day, followed by the S&P 500, the Dow, the Global Dow, and the Russell 2000. Treasury yields and the dollar dropped, while crude oil prices advanced for the third consecutive day.
The market continued to rally last Thursday. The S&P 500 climbed upwards and was on track for its best week since April. Tech stocks surged, pushing the Nasdaq up on the day and adding to a lofty week. Globally, stocks also posted notable gains, driving the Global Dow up as a result. Treasury prices fell, moving yields higher. Crude oil prices sank and the dollar fell to its lowest level in more than two years. Among the market sectors, only energy lost, while technology and materials closed on the positive side.
Stocks were flat to close out the week, with the Global Dow and the Nasdaq posting modest gains, while the remaining benchmark indexes listed here lost value. Among the market sectors, information technology, consumer staples, health care, industrials, and materials advanced marginally.
Despite last Friday’s tepid returns, stocks enjoyed their best week since April. Investors may have been anticipating that former Vice President Joe Biden would win the presidential election and Republicans would maintain control of the Senate. This scenario might lead to additional fiscal stimulus but marginal tax increases, if any. While this is purely speculation, it could have been enough to drive investors to stocks last week. The tech-heavy Nasdaq led the charge, followed by the S&P 500, the Dow, the Russell 2000, and the Global Dow. Year to date, The Nasdaq is generously above last year’s closing value, while the S&P 500 is outpacing last years value. The Dow has again come within striking distance of hitting its 2019 closing mark as the indexes continue to push ahead following the COVID-19 downturn.
Eye on the Week Ahead
The predominant question this week continues to focus on the impact that the election will have on the economy in general, and on the market in particular. Economic reports available this month focus on October, so it will take a few months at the very least before we may get a clearer picture of where the economy and market are headed. In any case, economic reports this week focus on consumer and producer prices in October. Stocks sailed to record highs this morning as traders took in promising data on a leading COVID-19 vaccine candidate as well as President-elect Joe Biden’s victory in the U.S. presidential election, ending a days-long nail-biter over which candidate would prevail in winning the White House.
Max Rossiter is a native of Gilbert, AZ and a recent graduate of Arizona State University where he earned a Bachelor of Arts degree in Public Service and Public Policy from the W.P. Carey School of business. He comes to the team as a Financial Advisor Associate, focusing on providing financial guidance for the professional and private clients.
Jodi is originally from Redlands, California. She moved to Arizona in 1996 after receiving her Bachelor of Arts degree in Psychology from the University of Redlands. Her first job out of college happened to be as a receptionist at a small Broker/Dealer in Phoenix, and her interest in the world of finance was born. From receptionist, she moved on to larger firms and earned various securities licenses, working in Customer Service, Operations, Compliance, and finally, Trading.
Tim Carpenter started his financial career with Dean Witter 30 years ago. Tim serves as the Portfolio Manager and cornerstone of our Biltmore Wealth Management team. Tim’s primary focus on portfolio management provides a breadth of expertise and knowledge that enables the firm to manage risk and achieve financial goals for our clients.
Kevin is a native of Buffalo, NY, a graduate of Mercyhurst College (Erie, PA), and has been advising individual investors since 1999. Kevin focuses on providing financial strategies to the professional athlete.