The Week on Wall Street
Markets remained exceptionally volatile, buffeted by the spreading impact of coronavirus, uncertain responses from federal policymakers, and the sudden drop in oil prices.
The Dow Jones Industrial Average fell 10.36%, while the S&P 500 declined 8.79%. The Nasdaq Composite index slid 8.18% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, dropped 17.75%.
Markets Grapple with Uncertainty
A dispute between Saudi Arabia and Russia over oil production cuts, mounting fears of the coronavirus, the declaration of the COVID-19 as a global pandemic by the World Health Organization, and the news of a travel ban from Europe unsettled markets throughout the week.
Stock trading was halted twice by circuit breakers, which are designed to briefly stop trading when losses in the S&P 500 reach 7%. Stocks sold off sharply Thursday before ending a tumultuous week with a strong rebound on Friday.
Troubles in the Oil Patch
The failure of Russia to join Saudi Arabia in supporting lower oil production targets left Saudi Arabia fuming. In response, Saudi Arabia announced its intention to raise oil output.
Oil prices plummeted on the news, contributing to the stock market’s drop on Monday. While lower oil prices may represent a boon to consumers in the form of lower gasoline prices and relief to companies with high energy consumption (e.g., airlines, chemical), they also pose a risk to the American energy industry. If low oil prices persist, it may lead to lower capital expenditures and potential issues in the credit markets, as less-well-capitalized companies struggle to manage their debt obligations.
The world’s central bankers have already taken several steps to combat the economic impact of the coronavirus, including lowering short-term interest rates. The financial markets are now looking for a response from the U.S. government. In evaluating any actions from the federal government, investors may focus on the size and timing of policy proposals to determine if they can reduce current levels of economic uncertainty.
THE WEEK AHEAD: KEY ECONOMIC DATA
Tuesday: Retail Sales, JOLTS Report (Job Openings and Labor Turnover Survey), Industrial Production
Wednesday: Housing Starts, FOMC (Federal Open Market Committee) Announcement
Thursday: Leading Economic Indicators
Friday: Existing Home Sales
THE WEEK AHEAD: COMPANIES REPORTING EARNINGS
Monday: Coupa Software (Coup)
Tuesday: FedEx Corp. (FDX), MongoDB (MDB)
Wednesday: General Mills (GIS), Ctrip.com (TCOM)
Thursday: Tencent Holdings (TCEHY), Lennar (LEN)
Friday: Tiffany & Co. (TIF), BMW (BAMXF)
“Success is not final, failure is not fatal: it is the courage to continue that counts.”
– Winston Churchill
Recipe of the Week
- ¼ oz. package yeast
- 1 cup warm water
- ½ cup milk, scalded
- 1½ cup sugar
- 1 cup butter
- 1½ cup butter, melted
- 1 tsp. salt
- 1 egg
- 4 cups all-purpose flour
- 2 Tbsp. ground cinnamon
- 2 cups powdered sugar
- 1 tsp. vanilla extract
- Heat oven to 350° F.
- Dissolve yeast in bowl of warm water and set aside.
- Mix milk, sugar, ⅓ cup melted butter, salt, and egg.
- Add 2 cups of flour and mix until smooth.
- Pour in yeast mixture.
- Mix in rest of flour and stir into dough.
- Knead dough over floured surface for 5 to 10 minutes, then cover in well-greased bowl.
- Let rise for 60 to 90 minutes, or until the dough has doubled in size.
- Punch down dough and roll it out on a floured surface into a rectangle.
- Spread melted butter over dough.
- Mix cinnamon with sugar and sprinkle over the dough.
- Roll up rectangle cut into a dozen or more single rolls.
- Coat pan with butter and sprinkle sugar.
- Insert rolls close together in pan and let rise for 45 minutes.
- Bake for 30 minutes, or until browned.
- For frosting, mix butter, powdered sugar, and vanilla.
- Add hot water 1 Tbsp. at a time until spreadable.
- Once you take out the rolls, let cool, then add the frosting.
Recipe adapted from FoodNetwork.com
Worried About Missing The Tax Deadline?
Tip adapted from IRS.gov
Why You Should Play for the Center of a Green
Tip adapted from Pipestone Golf
Make Your Own Luck – with Science!
- They’re not passive. They volunteer themselves for planning and leadership positions.
- They make plans to achieve their goals. They search, organize, and take action to reach their aspirations.
- They’re observant. They are constantly aware of their surroundings.
- They have in-person social connections. Networking is their forte.
- They have an impressive virtual presence. Their social media connections and prominence are highly optimized.
Tip adapted from PsychologyToday.com
Build a Wardrobe That Lasts
Tip adapted from RealSimple