The Week on Wall Street
Overlooking stalled efforts by Congress to pass a new fiscal stimulus bill, stocks marched higher last week with the Dow Jones Industrials leading the way and the NASDAQ Composite setting multiple fresh record highs.
The Dow Jones Industrial Average gained 3.80%, while the Standard & Poor’s 500 rose by 2.45%. The Nasdaq Composite index climbed 2.47% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, advanced 2.31%.
Earnings Season Winds Down
A string of encouraging news reports, including a decline in new COVID-19 cases nationwide, pushed stock prices higher throughout the week. Stocks also rallied on signs of a pick-up in manufacturing activity, factory orders that came in well above estimates, and a better-than-expected new jobless claims number.
Congress wasn’t able to come to an agreement on a stimulus package, which disappointed some investors. But it wasn’t enough to slow the daily climb in the equity markets, with the NASDAQ Composite index closing above 11,000 for the first time, while the S&P 500 index closed in on its record high set in February of this year.
Stocks drifted on Friday even though the employment report showed that employers added 1.8 million jobs in July, lowering the unemployment rate to 10.2%.
One Eye on Bonds, Gold
The continued rally in stock prices appears to suggest that the U.S. economy may maintain its recovery through the second half of the year and into 2021. But the bond market and gold prices suggest a different outlook.
Last week the yield on 10-year Treasuries touched their lowest level since early March, signaling that bond investors may be less convinced about economic prospects.
Meanwhile, gold traded over $2,000 per ounce. While the rise in gold prices this year has been largely propelled by historically low interest rates, its reputation as a store of value has attracted investors worried about stock market volatility and a potential uptick in inflation.
It was reported last week that the U.S. and China agreed to meet by videoconference on August 15 to discuss compliance with the terms of the Phase One trade deal.
With tensions running high between the two nations, expect Wall Street to keep a close eye on any developments that may appear connected to the virtual meeting.
THIS WEEK: KEY ECONOMIC DATA
Monday: Job Openings and Labor Turnover Survey (JOLTS).
Wednesday: Consumer Price Index (CPI).
Thursday: Jobless Claims.
Friday: Retail Sales. Industrial Production. Consumer Sentiment.
THIS WEEK: COMPANIES REPORTING EARNINGS
Monday: Marriott International (MAR)
Wednesday: Cisco Systems (CSCO), Tencent Holdings (TCEHY), Lyft (LYFT)
Friday: Draftkings (DKNG)
“Never believe your best days are behind you. You may just need to reach farther ahead.”
– Tay Zonday
Recipe of the Week
Fresh Chopped Salad
- Champagne vinegar
- ⅓ cup extra virgin olive oil
- Salt and pepper
- ½ pound (8 ounces) cooked beets
- 12 ounces (about 20) baby carrots, halved lengthwise
- ½ pound sliced fingerling potatoes
- ½ pound marinated artichoke hearts
- ½ pound thinly sliced fennel
- 4 thinly sliced radishes
- ½ cucumber, quartered
- 3 ounces pea shoots
- 2 tablespoons fresh dill
- In a large bowl, mix together the vinegar, olive oil, salt, and pepper.
- Toss the beets in the dressing.
- Cook the potatoes and carrots for about 8 minutes or until tender.
- Toss the remaining ingredients with the oil and vinegar dressing and enjoy.
Recipe adapted from Food & Wine
Military Members May Be Able to File Taxes Online for Free
Tip adapted from IRS.gov
The Right Set Up Will Get You Out of the Bunker
- Kombucha is a source of probiotics. Probiotics may aid in digestion and may improve gut health.
- Kombucha is made out of tea, which means that it may also contain antioxidants. Antioxidants may help your body fight free radicals and toxins.
- Kombucha may also be able to kill bacteria in your body. It’s a type of vinegar because of the fermentation.
Tip adapted from Healthline
Eco-Friendly Online Shopping Tips
Online shopping is a more eco-friendly option than going to a store. Besides, what’s not to love about shopping from the couch? You can shop nearly anywhere you want without burning any gas. Here are a few things you can do to make your online shopping even more eco-friendly.
Tip adapted from GreenLivingTips.com
 Greenlivingtips.com, August 7, 2020