The Week on Wall Street
Stocks powered to another week of gains as the S&P 500 and Nasdaq Composite set multiple new record highs along the way.
The Dow Jones Industrial Average was essentially unchanged while the Standard & Poor’s 500 rose by 0.72%. The Nasdaq Composite index added 2.65% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, slipped 0.71%.[1][2][3]
The S&P 500 Sets Record High
The S&P 500 closed at a record high on Tuesday, erasing the steep losses suffered in February and March. The recovery has been powered by unprecedented monetary accommodation, fiscal stimulus, and investor willingness to look ahead with confidence that global economies will get past the pandemic challenge. Technology stocks continued to lead the market and helped push the NASDAQ Composite to new highs.[4]
Stocks were mixed as the week progressed amid some weak economic news, a message of economic caution from the Fed, and continuing uncertainty over a new fiscal stimulus plan.Technology momentum provided support for the broader market, with a late Friday afternoon rally pushing the S&P 500 and Nasdaq Composite to close out the week at fresh record highs.[5]
Not All Sectors Are Participating
Behind last Tuesday’s headline that the S&P 500 had set a new record high lies a story of a deeply bifurcated market.
Despite a new high, more than half the companies in the index were still trading below where they began the year. When dissected on an industry sector basis, the year-to-date performance dispersion was quite wide, with sectors like Technology (+25.53%), Consumer Discretionary (+16.68%), and Communication Services (+12.70%) posting strong performance, while Energy (-37.56%) and Financials (-20.08%) remained sharply down. In fact, nearly half (5 out of 11) of S&P 500 sectors were still in negative territory year-to-date.[6][7][8]
THIS WEEK: KEY ECONOMIC DATA
- Tuesday: Consumer Confidence. New Home Sales.
- Wednesday: Durable Goods Orders.
- Thursday: Jobless Claims. Gross Domestic Product (GDP).
- Friday: Consumer Sentiment.
THIS WEEK: COMPANIES REPORTING EARNINGS
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Tuesday: Salesforce.com (CRM), Best Buy (BBY), Intuit (INTU)
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Thursday: Marvell Technology (MRVL), Dollar General (DG), Dollar Tree (DLTR), Dell Technologies (DELL), VMware (VMW)
“The person who asks is a fool for five minutes, but the person who does not ask remains a fool forever.”
– Chinese Proverb
Recipe of the Week
Homemade Belgian Waffles
- 2¼ cups all-purpose flour
- 1 Tbsp. baking powder
- 3 Tbsp. sugar
- Salt
- Cinnamon
- 2 eggs, separated
- ½ cup vegetable oil
- 2 cups milk
- Vanilla extract
- In a large bowl, mix together the flour, baking powder, and sugar. Sprinkle in a pinch of salt and cinnamon, to taste (about 1 tsp.).
- In another bowl, whisk the egg whites until stiff peaks form.
- In a third bowl, mix together the egg yolks, oil, milk, and vanilla extract (about 1 tsp.).
- Add the yolk mixture to the dry mixture and mix well. Then, fold in the egg whites.
- Pour the batter onto a hot waffle iron and cook as directed (usually about 3 minutes).
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Serve with fresh fruit, pure maple syrup, powdered sugar, or any other toppings!
Recipe adapted from TheSaltyMarshmallow.com[9]
Tax Tips
Do You Know the Difference Between Standard and Itemized Deductions?
- The standard deduction may adjust every year and can vary by filing status. It also depends on a number of factors. You may be able to find the standard tax deductions on the first page of your filing form (such as Form 1040 or Form 1040-SR).
- Itemized deductions refer to individual expenses, such as state and local income or sales taxes, real estate taxes, mortgage interest, mortgage insurance premiums, and more. Taxpayers may be able to itemize deductions when the amount is greater than the standard deduction.
Tip adapted from IRS.gov[10]
Golf Tip
This Drill Will Help You Learn How to Uncock Your Wrists Properly
Tip adapted from GolfMagic.com[11]
Healthy Lifestyle
Health Benefits of Pets
- Decreased blood pressure
- Decreased cholesterol levels
- Decreased triglyceride levels
- Decreased feelings of loneliness or depression
- Increased opportunities for exercise or outdoor activities
- Increased opportunities for socialization
Green Living
How to Eat Sustainably
- Eat more plants – The maintenance and production of beef contributes nearly half of greenhouse gas emissions in the American diet. Not only is eating more plants healthier for you, but it also helps reduce these emissions.
- Waste less food – Food waste is a major problem in the U.S. In fact, Americans waste $90 billion each year on food that never gets eaten.
- Buy local – Local produce, dairy, and meat reduces the travel your meal needs to take to get to your plate. Also, it’s healthier for you!
[1] The Wall Street Journal, August 21, 2020
[2] The Wall Street Journal, August 21, 2020
[3] The Wall Street Journal, August 21, 2020
[4] The Wall Street Journal, August 18, 2020
[5] CNBC, August 19, 2020
[6] BBC News, August 18, 2020
[7] FactSet.com, August 21, 2020
[8] FactSet.com, August 21, 2020
[9] TheSaltyMarshmallow.com, August 21, 2020
[10] IRS.gov, August 21, 2020
[11] Golfmagic.com, August 21, 2020
[12] CDC.gov, August 21, 2020
[13] EarthShare.org, August 21, 2020