Weekly Market Update | November 16, 2020
Vaccine Triggers Rally
The Week on Wall Street
News of a COVID-19 vaccine ignited a rally in economically sensitive stocks and a broad retreat in technology companies last week, though enthusiasm was tempered by reports of rising new infections and fresh lockdowns.
The Dow Jones Industrial Average surged 4.08%, while the Standard & Poor’s 500 rose 2.16%. The Nasdaq Composite index fell 0.55% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, jumped 4.01%.
Reports of an effective COVID-19 vaccine sent stocks soaring on Monday as the end to economic uncertainty appeared to be in sight. Stocks that had been pummeled by economic lockdowns surged on the news, while the stay-at-home stocks suffered steep declines. Bond yields and oil prices both moved higher on expectations of increased economic activity.
Market enthusiasm evaporated in the days that followed, however, as higher COVID-19 infections, new lockdowns, and low expectations for a new fiscal stimulus package dampened the optimism brought on by the pending vaccine.
Stocks closed the week on a higher note, with cyclical stocks adding to their gains and technology companies shaving part of their losses.
Clouds Over Chinese Capitalism?
The market was caught by surprise last week when Chinese regulatory authorities issued draft guidelines to address concerns over abusive monopolistic practices. Shares in some of the biggest Chinese technology companies dropped on the news. This follows the prior week’s suspension of a listing of a large initial public offering for one of the country’s leading fintech companies.
It’s difficult to say whether Chinese regulators are acting on concerns that western nations have with the dominance of Big Tech companies, or if they are attempting to rein in the power and influence of privately owned corporations. An answer may not be clear anytime soon, but investors will be watching.
Key Economic Data
Thursday: Consumer Price Index (CPI), Jobless Claims.
Friday: Consumer Sentiment.
Source: MarketWatch Calendar
Companies Reporting Earnings
Monday: Palo Alto Networks (PANW), Tyson Foods, Inc. (TSN), JD.com, Inc. (JD)
Tuesday: Walmart (WMT), The Home Depot (HD)
Wednesday: Nvidia Corp. (NVDA), Target Corp. (TGT), Lowe’s Companies (LOW), The TJX Companies (TJX)
Thursday: Workday, Inc. (WDAY), Ross Stores (ROST), Intuit (INTU), Netease, Inc. (NTES)
Sources: The Wall Street Journal, November 13, 2020; Treasury.gov, November 13, 2020
Weekly performance for the Dow Jones Industrial Average, Standard & Poor’s 500 index, and NASDAQ Composite is measured from the close of trading Friday, November 6, to Friday November 13, close. Weekly performance for the MSCI-EAFE is measured from Friday November 6, open to the Thursday November 12, close. Weekly and year-to-date 10-year Treasury note yields are expressed in basis points.
Friendships May Benefit Your Health in Many Ways
Making friends is one of the very first things we do as children and that need for connection only gets more important as we age.
Friendships may benefit our health in a number of ways. First off, having friends may decrease stress levels, which impact both our mental and physical health. Laughing with friends is one of the best forms of medicine! Friendships may also help keep our minds sharp. You’re engaging more with others and feel less isolated and alone. Lastly, friends are a great support system and can help us through tough times.
riend and celebrate the holiday season!
Tip adapted from Live Science
Serves: 4 cups
- 1 can of chickpeas
- 1 can unsweetened pumpkin puree
- 2 garlic cloves
- ¼ cup tahini
- 2 tablespoons adobo sauce from chipotle chiles canned in adobo
- ¼ cup lemon juice
- 2 tablespoons olive oil
- 2 tablespoons salt
- ½ cup pepitas (hulled roasted pumpkin seeds)
- ¼ cup feta
- In a food processor, mix together the chickpeas, pumpkin puree, garlic, tahini, adobe sauce, lemon juice, olive oil, and salt until smooth. Add salt and lemon juice to taste.
- Transfer the hummus to a bowl and garnish with the pepitas and crumbled feta cheese. Serve with pita bread.
Recipe adapted from My Recipes
How High Should You Tee Your Ball for Your Driver?
Properly teeing up your ball is the first step in hitting a great shot. You won’t find an exact measurement of how high you should tee up your ball because it depends on the type of shot you want to achieve and the club itself.
For a normal drive, you should tee the ball up so half of the golf ball is above the height of your driver. If you are hitting downwind or want your drive to go higher, tee the ball up higher. If you want to achieve a lower ball flight or you’re playing on a windy day, tee the ball lower. When you properly tee up your ball, your tee should stay in the ground after your shot because all of your force is directed into the ball properly.
Tip adapted from Golficity
Tax Pros Should Protect Their EFIN
Every tax professional has their own electronic filing identification number, or EFIN. To help maintain security, tax pros can verify the number of returns submitted using their EFIN and look out for suspicious activity. Tax pros can check this information using the IRS e-Services. Once they create an account, they can see the number of returns the IRS received and match this number to their records.
* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.
Tip adapted from IRS.gov
DIY Rain Harvesting
Did you know that about 600 gallons of rainwater can be harvested from about one inch of rain if it falls from a thousand square foot roof? Harvesting rainwater is a great way to save water and take full advantage of Mother Nature this fall. Plus, you don’t even need fancy equipment to get started. Here’s what you need to know:
- You can calculate how much rainwater you’ll harvest by using data points like how much it rains where you live and the length and width of your roof.
- Rainwater tanks can be as small as 55 gallons.
- Make sure to place your rainwater reservoir underneath a downspout.
- The main components of a rainwater harvesting system are a barrel, a transportation system for the water, and a filter.
- Even if you’re not the handiest, some rain catchers are as simple as a garbage bin, a lid, and a filter.
Tip adapted from Morning Chores
Financial planning and investment advisory services offered through Cleveland Wealth, LLC, a Registered Investment Advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified wealth advisor and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.