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Market Dashboard

Last update: 10/19/2020

Last week's featured headlines and data

Domestic

  • For the week ending October 16, the S&P 500® Total Return (TR) index rose 0.21% and the Dow Jones Industrial Average (Total Return) rose 0.07%. The S&P 500 TR’s year-to-date return, including price change plus dividends, was 9.45%. 
  • Heading into the back half of October and the thick of earnings season, US stocks shook off more stimulus-deal turmoil, rising COVID cases, and mixed economic data to post their third-straight up week.
  • The best-performing sectors for the week were industrials and communication services, while the worst-performing sectors were real estate and energy.
  • The major US banks kicked off Q3 earnings season on a mostly positive note. In general, strong trading and investment banking performance helped boost revenue, while the amounts set aside for loan defaults shrank. 
  • First-time jobless claims came in higher than expected at 898,000 (vs. 830,000). Continuing jobless claims, however, fell by more than a million, to roughly 10 million. 
  • Retail sales were surprisingly strong in September, rising 1.9% vs. the estimated 0.7%. 
S&P 500 sector performance for the week

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Russell Style Indexes

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International

  • European leaders are considering new containment measures amid an uptick in coronavirus cases. France implemented a 9 p.m. curfew in major cities, while London moved to tighten social restrictions. Germany and Italy are also experiencing a surge of new infections.
  • The International Monetary Fund (IMF) upgraded its 2020 global economic forecast while warning of a slower recovery in 2021, saying it will be a “long, uneven, and uncertain” ascent.
  • In its latest report, the International Energy Agency (IEA) predicted that crude oil demand could plateau around 2030 and decline from there, if the response to the pandemic results in lasting changes to energy consumption. The report also noted that while the transition to clean energy has gained momentum, bolder government policies would be needed to achieve net-zero greenhouse gas emissions.
  • The European Union won the right to impose tariffs on $4 billion of US goods in response to government subsidies granted to plane-maker Boeing. The decision follows a ruling last year allowing the US to impose tariffs on $7.5 billion in European goods over state support for rival Airbus.
Trailing index returns

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Fixed income

  • US Treasury yields rose Friday after strong retail sales and consumer confidence data fueled hopes for a continued economic recovery. The yield on the benchmark 10-year T-note closed at 0.76% Friday, up from 0.74% on Thursday. 
  • Companies have slowed the unprecedented pace of bond issuance set earlier this year. Investors, meanwhile, continue to pour into the market: US investment-grade corporate bond funds saw $8.7 billion of inflows in the past week, according to Bank of America Merrill Lynch. The slowdown, coupled with continued demand, could support a further rally for investment-grade debt.
  • Shares of bankrupt car-rental company Hertz soared Friday after announcing it had secured $1.65 billion in financing. Hertz said it plans to invest up to $1 billion of the funds in vehicle acquisitions in the US and Canada, and up to $800 million for working capital and general corporate purposes. 
Weekly fixed income rates

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Other news

  • Johnson & Johnson paused the advanced clinical trial of its coronavirus vaccine because of an unexplained illness in a participant.
  • Apple introduced a redesigned lineup of iPhones enabled for 5G network speeds.
  • Amazon said third-party sellers on its site earned more than $3.5 billion during this year’s “Prime Day,” a 60% increase from last year and a record for the small and midsize businesses that make up its marketplace.
  • Mallinckrodt Pharmaceuticals filed for bankruptcy protection amid opioid-related lawsuits. 
  • Pilgrim’s Pride, one of the largest poultry producers in the US, agreed to pay a $110.5 million fine over price-fixing charges.

The week ahead

  • The National Association of Home Builders releases the NAHB/Wells Fargo Housing Market Index for October.
  • Halliburton and others report earnings.
  • The Census Bureau reports new residential construction data for September.
  • Redbook.
  • Netflix and others report earnings.
  • The Federal Reserve releases the Beige Book.
  • EIA Petroleum Status Report released.
  • MBA Mortgage Applications reported.
  • Tesla and others report earnings.
  • The final presidential debate scheduled to take place at Belmont University in Nashville.
  • EIA Natural Gas Report released.
  • Leading Indicators reported.
  • The National Association of Realtors reports existing home sales for September. 
  • Jobless claims reported.
  • Coca-Cola and others report earnings.
  • IHS Markit releases its Manufacturing and Services Purchasing Managers’ Indexes for October.
  • Baker-Hughes Rig Count reported.
  • American Express and others report earnings.

Weekly and monthly style performance charts use Russell 1000, Russell Mid Cap, and Russell 2000 style indexes to represent large cap, mid cap, and small cap respectively.

BarCap Municipal TR USD: Listed for municipal-bond funds. This index serves as a benchmark for long-term, investment-grade, tax-exempt municipal bonds. The returns we publish for the index are total returns, which include reinvestment of dividends.

BarCap US Agg Bond TR USD: Composed of the BarCap Government/Credit Index, the Mortgage-Backed Securities Index, and the Asset-Backed Securities Index. The returns we publish for the index are total returns, which include reinvestment of dividends.

Barclays Capital U.S. Corporate High-Yield Bond Index: The U.S. Corporate High-Yield Index covers the USD-denominated, non-investment grade, fixed-rate, taxable corporate bond market. Securities are classified as high-yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+/BB+ or below. The index excludes emerging markets debt. The index was created in 1986, with index history backfilled to January 1, 1983. The U.S. Corporate High-Yield Index is part of the U.S. Universal and Global High-Yield Indexes.

Barclays Capital U.S. 7–10 Year Treasury: The index measures the performance of U.S. Treasury securities that have a remaining maturity of at least seven years and less than 10 years.

Bloomberg Gold Subindex: Formerly known as Dow Jones-UBS Gold Subindex (DJUBSGC), the index is a commodity group subindex of the Bloomberg CI composed of futures contracts on Gold. It reflects the return of underlying commodity futures price movements only and is quoted in USD.

Bloomberg WTI Crude Oil Subindex: Formerly known as Dow Jones-UBS WTI Crude Oil Subindex Total Return (DJUBCLTR), the index is a single commodity subindex of the Bloomberg CI composed of futures contracts on crude oil. It reflects the return of underlying commodity futures price movements only and is quoted in USD. 

60/40 S&P500/BarCap US Agg Bond Index: The 60/40 SP&500/BarCap US Agg Bond benchmark is comprised of a 60% allocation to the S&P500 and 40% allocation to the BarCap US Agg (rebalanced quarterly). The benchmark is intended to provide a hypothetical portrayal of a 60/40 asset allocation. 

Citigroup World Government Bond Index (Citigroup WGBI) is a market capitalization weighted index consisting of the government bond markets. Country eligibility is determined based on market capitalization and investability criteria. All issues have a remaining maturity of at least one year.

Dow Jones Industrial Average: Computed by summing the prices of the stocks of 30 companies and then dividing that total by an adjusted value—one which has been adjusted over the years to account for the effects of stock splits on the prices of the 30 companies. Dividends are reinvested to reflect the actual performance of the underlying securities.

DJ UBS Sub Crude Oil TR USD: Indexes in the DJ-UBSCIsm family are calculated on both an excess return and total return basis. The excess return indexes reflect the return of underlying commodity futures price movements only, whereas the total return indexes reflect the return on fully collateralized futures positions. 19 commodities are included in the DJ-UBSCIsm, representing the following commodity sectors: energy, precious metals, industrial metals, livestock, and agriculture.

DJ UBS Sub Gold TR USD: Indexes in the DJ-UBSCIsm family are calculated on both an excess return and total return basis. The excess return indexes reflect the return of underlying commodity futures price movements only, whereas the total return indexes reflect the return on fully collateralized futures positions. 19 commodities are included in the DJ-UBSCIsm, representing the following commodity sectors: energy, precious metals, industrial metals, livestock, and agriculture.

J.P.Morgan Emerging Markets Bond Index Global (EMBI Global) tracks total returns for traded external debt instruments in the emerging markets, and is an expanded version of the JPMorgan EMBI+. As with the EMBI+, the EMBI Global includes U.S.dollar-denominated Brady bonds, loans, and eurobonds with an outstanding face value of at least $500 million. It covers more of the eligible instruments than the EMBI+ by relaxing somewhat the strict EMBI+ limits on secondary market trading liquidity.

MSCI EAFE (Europe, Australasia, Far East) Index: A free float-adjusted market-capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The MSCI EAFE Index consists of the following 21 developed market country indexes: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. For more information, visit the MSCI website.

MSCI EMF (Emerging Markets Free) Index: A free float-adjusted market-capitalization index that is designed to measure equity market performance of emerging markets. The MSCI Emerging Markets Index consists of the following 23 emerging market country indexes: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates. For more information, visit the MSCI web site.

Russell 1000: Consists of the 1000 largest companies within the Russell 3000 index. Also known as the Market-Oriented Index, because it represents the group of stocks from which most active money managers choose. The returns we publish for the index are total returns, which include reinvestment of dividends. Frank Russell Company reports its indexes as one-month total returns.

Russell 1000 Growth: Market-capitalization weighted index of those firms in the Russell 1000 with higher price-to-book ratios and higher forecasted growth values. The Russell 1000 includes the largest 1000 firms in the Russell 3000, which represents approximately 98% of the investable US equity market.

Russell 1000 Value: Market-capitalization weighted index of those firms in the Russell 1000 with lower price-to-book ratios and lower forecasted growth values. The Russell 1000 includes the largest 1000 firms in the Russell 3000, which represents approximately 98% of the investable US equity market.

Russell 2000: Consists of the smallest 2000 companies in the Russell 3000 Index, representing approximately 7% of the Russell 3000 total market capitalization. The returns we publish for the index are total returns, which include reinvestment of dividends.

Russell 2000 Growth: Market-weighted total return index that measures the performance of companies within the Russell 2000 Index having higher price-to-book ratios and higher forecasted growth values. The Russell 2000 Index includes the 2000 firms from the Russell 3000 Index with the smallest market capitalizations. The Russell 3000 Index represents 98% of the of the investable US equity market.

Russell 2000 Value: Market-weighted total return index that measures the performance of companies within the Russell 2000 Index having lower price-to-book ratios and lower forecasted growth values. The Russell 2000 Index includes the 2000 firms from the Russell 3000 Index with the smallest market capitalizations. The Russell 3000 Index represents 98% of the of the investable US equity market.

Russell Midcap: Measures the performance of the 800 smallest companies in the Russell 1000 Index, which represent approximately 25% of the total market capitalization of the Russell 1000 Index. As of the latest reconstitution, the average market capitalization was approximately $4.0 billion; the median market capitalization was approximately $2.9 billion. The largest company in the index had an approximate market capitalization of $12 billion.

Russell Midcap Growth: Market-weighted total return index that measures the performance of companies within the Russell Midcap Index having higher price-to-book ratios and higher forecasted growth values. The Russell Midcap Index includes firms 201 through 1000, based on market capitalization, from the Russell 3000 Index. The Russell 3000 Index represents 98% of the of the investable U.S. equity market.

Russell Midcap Value: Market-weighted total return index that measures the performance of companies within the Russell Midcap Index having lower price-to-book ratios and lower forecasted growth values. The Russell Midcap Index includes firms 201 through 1000, based on market capitalization, from the Russell 3000 Index. The Russell 3000 Index represents 98% of the of the investable U.S. equity market.

NASDAQ: Measures the performance of all issues listed in the NASDAQ Stock Market, except for rights, warrants, units, and convertible debentures. Morningstar reports the NASDAQ Composite as a price return.

S&P 500: A market capitalization-weighted index of 500 widely held stocks often used as a proxy for the stock market. It measures the movement of the largest issues. Standard and Poor's chooses the member companies for the 500 based on market size, liquidity and industry group representation. Included are the stocks of industrial, financial, utility, and transportation companies. Since mid-1989, this composition has been more flexible and the number of issues in each sector has varied. The returns presented for the S&P 500 are total returns, including the reinvestment of dividends each month.

The S&P 500 Consumer Discretionary sector comprises those companies included in the S&P 500 that are classified as members of the consumer discretionary sector.

The S&P 500 Consumer Staples sector comprises those companies included in the S&P 500 that are classified as members of the consumer staples sector.

The S&P 500 Energy sector comprises those companies included in the S&P 500 that are classified as members of the energy sector.

The S&P 500 Financials sector comprises those companies included in the S&P 500 that are classified as members of the financial sector.

The S&P 500 Health Care sector comprises those companies included in the S&P 500 that are classified as members of the health care sector.

The S&P 500 Industrials Sector comprises those companies included in the S&P 500 that are classified as members of the industrials sector.

The S&P 500 Information Technology Sector comprises those companies included in the S&P 500 that are classified as members of the information technology sector.

The S&P 500 Materials Sector comprises those companies included in the S&P 500 that are classified as members of the materials sector.

The S&P 500 Communications Services Sector comprises those companies included in the S&P 500 that are classified as members of the telecommunications services sector.

The S&P 500 Utilities Sector comprises those companies included in the S&P 500 that are classified as members of the utilities sector.