Optimism for Re-Opening
Hi there Eagle Community,
In normal times, any day now you'd find a Save the Date for our annual client appreciation event in your mailbox. Well, this year's celebration is going be a bit different (like everything else). We might not be dressed to the nines or dancing the night away, but we're putting on our thinking caps to find new ways to connect with you. We’re hoping to plan some smaller, safer gatherings here in Bend later this year. We can’t wait to celebrate YOU and show you how much you mean to us.
Have a wonderful week,
Your Eagle Wealth Team
The first round of entries for our Invested In Community program are complete and we’re contacting the recipients. We’re looking forward to sharing stories with you soon.
Didn’t get a chance to enter? It’s not too late. The next drawing is on June 24th so enter now.
*No need to enter a second time. Your original entry will roll-over from month to month.
Date nights are certainly different nowadays, but there’s still fun to be had at home.
Chad and Cami were thrilled when their children, Caliahna, Kearina, and Briella, treated them to a “Backyard Date", complete with candles, a three-course menu (composed of leftovers), custom fruit-infused water creations, and amazing service. The waitresses served up a special evening, giving their parents time to be together and memories to last a lifetime.
To return the favor, Chad and Cami dressed up as servers and treated the girls to their own special “Sister’s Night Out” a couple weeks later. The girls loved politely ordering their parents around and kept them going for a 2.5-hour dinner! Lots of laughter that night for the Staskals.
Don’t have kids around to create a date night for you? Read this for some other ideas to enjoy time together during lockdowns.
The Week on Wall Street
The shortened week, which began with a powerful two-day rally of trading, was enough to drive the markets into another week of solid gains.
The Dow Jones Industrial Average rose 3.75%, while the Standard & Poor’s 500 advanced 3.01%. The Nasdaq Composite Index climbed 1.77% for the week. The MSCI EAFE Index, which tracks developed stock markets overseas, gained 6.18%.[i],[ii],[iii]
Rising Optimism
Returning from Memorial Day weekend, stocks surged on rising optimism over economic re-opening, declines in new infections, and progress in the development of a vaccine.
Stocks continued their march higher, lifted by signs that the White House and Congress may be working together to put together another stimulus package. But the momentum lost steam, in part due to news of China’s vote to override Hong Kong’s autonomy. Comments by President Trump on the last day of trading eased concerns.[iv],[v]
Rotation in Leadership
The recovery from the March lows has been powered by large-cap growth stocks, especially the mega-cap technology names. However, this week saw new sectors leading the market higher, notably the financials and industrials, while the technology and health care sectors lagged.
This leadership rotation is being referred to by some market commentators as the “re-opening trade.” If these sectors are to remain leaders, it may hinge on a steady economic recovery and escaping a second wave of COVID-19 infections.
THIS WEEK: KEY ECONOMIC DATA
Monday: Purchasing Managers Manufacturing Index (PMI). Institute for Supply Management (ISM) Manufacturing Index.
Wednesday: Automated Data Processing (ADP) Employment Report. PMI Services Index. ISM Non-Manufacturing Index.
Thursday: Jobless Claims.
Friday: Employment Situation Report.
Source: Econoday, May 29, 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
Tuesday: Dick’s Sporting Goods (DKS), Tiffany (TIF), Zoom Video (ZM), Crowdstrike (CRWD)
Wednesday: Cloudera (CLDR), Campbell Soup (CPB)
Thursday: Broadcom (AVGO), Docusign (DOCU), Slack Technologies (WORK)
Source: Zacks, May 29, 2020
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Any investment should be consistent with your objectives, time frame and risk tolerance. 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.