It’s Election Week – Here’s What You Should Focus On
Dear Eagle Wealth Community,
We’re a day away from the election and growing tired of the relentless politicking.
Case counts are rising around the country and winter is coming.
A stimulus deal to help the folks who are scraping by seems stalled.
Markets are down (and up and down).
It's hard to feel positive some days.
We’ve been mulling over a question we’d like to ask you.
When we take a look at 2020, it’s easy to see it as a long string of disasters, one after another. And the last year has exacted a terrible cost in lives cut short and dreams shattered. But what if we look for the good stuff that happened as well? Sometimes, it’s hard to remember the good things because they slip in quietly and often go unnoticed, while the bad news announces itself loudly, instantly, and overwhelmingly.
What if we paused to ask: what good has come to my life because of this year?
We’re grateful for the additional time spent with our spouses and families. It’s so easy to get caught up in the shuffle of work, school, activities, travel, and everything else. We’re glad we had the opportunity to slow down and make each other our refuge.
We developed a new appreciation for our neighbors in the Central Oregon Community. We were all thrown together during lockdown and we’re grateful for the opportunity to have gotten to know them better.
We think our grand experiment in remote work is going to yield big benefits to our society. Even though we’re looking forward to getting back to normal office life, we can see how it's a boon to many.
What good things came about in your life?
Will you share them with us? We’d love to know. Hearing good news helps us stay positive when we’re feeling down.
Your Eagle Wealth Team
P.S. If you're having a hard time right now, please reach out. We may not be able to fix things, but we can listen, offer advice, and share your burden.
The Week on Wall Street
Stock prices dropped last week as hopes for a fiscal stimulus bill faded and investors focused on rising COVID-19 infections, here and abroad.
The Dow Jones Industrial Average slid 6.47%, while the Standard & Poor’s 500 tumbled 5.64%. The Nasdaq Composite index lost 5.51% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, slumped 5.02%.[i],[ii],[iii]
A Difficult Week for Stocks
Stocks opened the week lower as lawmakers failed to pass a fiscal stimulus bill and a pick up in the number of new COVID-19 cases in the U.S. and Europe. Hardest hit were companies most exposed to pandemic-related economic impacts, including energy, travel and leisure, and industrials.
Losses accelerated mid-week on reports of rising coronavirus-related hospitalizations, along with news that Germany and France were reinstating partial shutdown restrictions.[iv]
Stocks attempted to recover on Thursday, but took another leg lower on Friday as earnings reports from the mega-cap technology companies failed to impress investors.
Positive Economic News
There were several strong economic reports during the week, but investors paid little attention. Among the highlights were durable goods orders, which rose for the fifth consecutive month, a sharp drop in initial jobless claims that were the lowest since March 14th, and a 33.1% annualized jump in economic growth during the third quarter.[v],[vi],[vii]
Investors also ignored a strong start to earnings season, which has seen 85% of reporting companies in the S&P 500 index beating earnings estimates by an average margin of 19%.[viii]
THIS WEEK: KEY ECONOMIC DATA
Monday: ISM (Institute for Supply Management) Manufacturing Index.
Wednesday: ADP (Automated Data Processing) Employment Report. ISM (Institute for Supply Management) Services Index.
Thursday: Jobless Claims. FOMC (Federal Open Market Committee) Meeting Announcement.
Friday: Employment Situation.
Source: Econoday, October 30, 2020
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
THIS WEEK: COMPANIES REPORTING EARNINGS
Monday: Paypal Holdings (PYPL), The Clorox Company (CLX), Mondelez International (MDLZ), Eversource Energy (ES)
Tuesday: Humana, Inc. (HUM), Prudential Financial (PRU), Emerson Electric (EMR)
Wednesday: Qualcomm (QCOM)
Thursday: Alibaba Group (BABA), Square, Inc. (SQ), Bristol Myers Squibb (BMY), General Motors (GM), Duke Energy (DUK), Cigna Corp. (CI), T-Mobile:US (TMUS), Booking Holdings (BKNG), MetLife (MET)
Friday: CVS Health Corp. (CVS), Marriott International (MAR)
Source: Zacks, October 30, 2020
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
[i] The Wall Street Journal, October 30, 2020
[ii] The Wall Street Journal, October 30, 2020
[iii] The Wall Street Journal, October 30, 2020
[iv] CNBC, October 27, 2020
[v] The Wall Street Journal, October 27, 2020
[vi] CNBC, October 29, 2020
[vii] The Wall Street Journal, October 29, 2020
[viii] CNBC, October 29, 2020