The Week On Wall Street
Stock benchmarks declined for a second straight week as coronavirus news tempered risk appetite.
The S&P 500 fell 2.14% on the week. The Nasdaq Composite dipped 1.76%, and the Dow Jones Industrial Average, 2.55%. Away from North America, developed markets slumped 2.24%, according to MSCI’s EAFE index.1,2
The Fed Makes A Minor Move
The Federal Reserve left short-term interest rates alone at its January meeting, but it did make what Fed chairman Jerome Powell called a “small technical adjustment” in view of its continuing purchases of Treasuries. Wednesday, it slightly increased the interest rate paid to banks that park excess capital reserves at the Fed.
The move may give the Fed a bit more control over short-term rates this quarter and assist the operations of U.S. financial markets.3
Encouraging New Consumer Data
Rising to 131.6 in January, the Conference Board’s Consumer Confidence Index reached its highest level since August. Consumer spending increased 0.3% in December, according to a new Department of Commerce report.4,5
Economy Expanded At A 2.1% Pace In Fourth Quarter
The Bureau of Economic Analysis released this estimate Thursday. That number matches the gross domestic product of the third quarter and affirms that the U.S. avoided a fall slowdown.6
The Week Ahead: Key Economic Data
- Monday: The latest snapshot of factory sector health from the Institute for Supply Management, presenting January data.
- Wednesday: ISM’s January report on the state of non-manufacturing businesses and the latest private-sector payrolls report from Automatic Data Processing (ADP).
- Friday: The Department of Labor releases its January employment report.
The Week Ahead: Companies Reporting Earnings
- Monday: Alphabet (GOOG), Sysco (SYY)
- Tuesday: BP (BP), Fiserv (FISV), Gilead Sciences (GIL), Walt Disney (DIS)
- Wednesday: GlaxoSmithKline (GSK), Merck (MRK), Qualcomm (QCOM), Toyota (TM)
- Thursday: Bristol-Myers Squibb (BMY), Cigna (CI), Philip Morris (PM), Sanofi (SNY)
- Friday: AbbVie (ABBV), Honda (HMC), Novo Nordisk (NVO)
|Market Index||Close Jan 31||Week %||YTD %|
|Treasury||Close Jan 31||Week %||YTD %|
|10 Year Note||1.51%||-0.19||-0.41|
Sources: wsj.com, treasury.gov – 1/31/2020
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. Weekly and year-to-date market index returns are expressed as percentages. 10-year Treasury note yield = projected return on investment, expressed as a percentage, on the U.S. government’s 10-year bond. Weekly and year-to-date 10-year Treasury note yield differences are expressed in basis points.