Market Indexes: The market had a down week, with all 4 indexes losing ground. The NASDAQ fell the most, and the DOW held up the best.
“U.S. stocks fell and the Nasdaq had its worst daily percentage decline in about three weeks on Friday as a spike in new coronavirus cases and data showing a stall in U.S. business activity in in the manufacturing and services sectors in February fueled investors’ fears about economic growth.” (Reuters)
“U.S. Treasury yields extended their weeklong slump on Friday as investors worried that the economic impact of COVID-19 may not be contained to China, and is spilling over into neighboring regions.
Global and U.S. stocks fell Friday as the growing number of cases of the coronavirus outside China, especially in South Korea, raised fears that the damage to supply chains could hit several major Asian economies which are linchpins for industries like semiconductors and automobiles.
Investors also said it’s unclear when workers will be able to return to factory floors. Some forecasters suggest car manufacturing and other industries may not return to usual production activity until March.
The bearish investor sentiment in risk assets helped boost demand for haven bonds, which have seen sharp inflows all week. Long-term Treasury yields are on the verge or have already broken through key levels that investors say could presage further yield declines.”
Volatility: The VIX rose 25% this week, ending the week at $17.08.
High Dividend Stocks: These high yield stocks go ex-dividend next week: CC, PBFX, BGCP, BPR, BPY, CLDT, EFC, HTFA, MDP, GLOG, SPKE.
Market Breadth: 7 out of 30 DOW stocks rose this week, vs. 19 last week. 35% of the S&P 500 rose, vs. 78% last week.
FOREX: The dollar fell vs. the Swiss franc, the Loonie, and the euro, and rose vs. the pound, the New Zealand dollar and Aussie, and the yen.
Economic News: January Existing Home Sales slowed to 5.46M, vs. the previous 5.53M. The PPI rose .5% in January, vs. 0.2% in December. Leading indicators rose .8% in Jan., vs. the previous -.3%.
Week Ahead Highlights: The estimate for Q4 ’19 GDP will come out on Thursday, followed by inflation, Personal Income, Consumer Spending, and Consumer Sentiment reports on Friday.
Next Week’s US Economic Reports:
Sectors: Real Estate, Telecoms, and Utilities led, Tech lagged.
Futures: WTI Crude rose again this week, up 2.48%, finishing at $53.46.
“Oil prices rose further on Thursday after a U.S. report showed a draw in gasoline inventories and a much smaller-than-anticipated rise in crude stocks. China’s move to cut its benchmark lending rate on Thursday also helped to ease worries about slowing demand in the world’s second-biggest oil consumer and largest crude oil importer.” (Reuters)
