The Week on Wall Street
Stocks soared last week as investors anticipated that a split Congress would raise legislative hurdles to changing corporate taxes and adjusting regulatory oversight of big technology companies.
The Dow Jones Industrial Average jumped 6.87%, while the Standard & Poor’s 500 tacked on 7.32%. The Nasdaq Composite index surged 9.01% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, rose 7.65%.
Bulls Take Charge
Coming off a poor close to October, stocks surged throughout election week, jumping higher in pre-election trading on bargain hunting and strong factory activity. The rally picked up steam as Americans went to the polls and shifted into overdrive Wednesday morning.
Investors were buoyed by Congressional results that indicate that the next president would have to work with a divided Congress. Though a divided Congress might result in a smaller potential stimulus package and continued gridlock, investors seemed to believe that was outweighed by a diminished risk of higher taxes, greater regulation, and policy initiatives that might be challenging to businesses.
Stocks took a pause to close out the week, even as a solid jobs report saw the unemployment rate fall a full percentage point to 6.9%.
Overlooked amid the powerful rally in stock prices was the swing in yields last week. Action in the bond market is important since 10-year Treasury yields are a benchmark for setting borrowing costs for businesses and they represent another view on the strength of the economic recovery.
The 10-year Treasury note rose as high as 0.942% during after-hours trading on election evening and dropped to 0.768% by the end of normal trading hours on Wednesday.
THIS WEEK: KEY ECONOMIC DATA
Thursday: Consumer Price Index (CPI), Jobless Claims.
Friday: Consumer Sentiment.
THIS WEEK: COMPANIES REPORTING EARNINGS
Monday: McDonald’s Corporation (MCD), Simon Property (SPG)
Tuesday: D.R. Horton (DHI), Rockwell Automation (ROK), Datadog, Inc. (DDOG)
Wednesday: Air Products and Chemicals, Inc. (APD)
Thursday: Tencent Holdings (TCEHY), The Walt Disney Company (DIS), Cisco Systems (CSCO), Applied Materials (AMAT)
Friday: Draftkings, Inc. (DKNG)
“Nothing in life is to be feared. It is only to be understood.”
Recipe of the Week
- 2 pieces of bread
- 4 tablespoons cream cheese
- 4 tablespoons strawberry jam
- ¼ cup blueberries
- 1 banana
- Toast the bread.
- Spread the cream cheese on the bread.
- Layer the strawberry jam over the cream cheese.
- Cut the banana into slices, then cut each slice in half.
- Arrange the blueberries in the top corner of the bread in a square like the stars on the flag and lay the bananas in 3 lines to represent the stripes on the flag.
Special Tax Considerations for Veterans
- Disabled veterans may be eligible to claim a federal tax refund if they receive an increase in the percentage of disability from the Department of Veteran Affairs.
- They may also be able to claim this tax refund if they are granted Combat-Related Special Compensation.
Know a Hole’s Playing Yardage to Improve Your Strategy
Giving Back This Veterans Day
- Disabled American Veterans has many ways to give back, from events to charitable gifts to chances for advocacy.
- The Wounded Warrior Project provides rehab and counseling and is always looking for new volunteers.
- Operation Write Home has a very simple premise: provide the materials that service members need to write home to their loved ones. The organization sends blank, handmade greeting cards to our troops that they can then send back home. You can give back by donating or making your own card!
Green Careers for Veterans
 Tasteandtellblog.com, November 7, 2020