Stocks React to Jobs Report
Greetings Eagle Wealth Community,
We got the gang back together! The Eagle Wealth team had our inaugural tailgate shindig complete with BBQ and yard games. Sure, it was a little different than our usual gatherings, but we made the best of it by taking advantage of our parking lot and staying 6ft+ apart. For some of us, it's been months since we've been face-to-face. We often tell you to focus on what matters and we need to practice what we preach. This is what life is all about — connecting with each other, practicing gratitude, and being our best selves so we can always show up when you need us. Also, we know that all work and no play leads to boring meetings — and nobody wants that.
What are you missing lately? Maybe a social-distanced driveway happy hour and some connection might help. Right now, we need to be safe but we gotta remember to have a little fun.
Your Eagle Wealth Team
Sometimes helping means thinking outside the box. This week's story is a mutually beneficial tale of two non-profits and a business.
The Hamby House in Bend offers short term housing to families of medical patients staying at the nearby hospital. As families battle some of the most difficult times of their lives, the Hamby House is a safe haven, and offers a place for rest and tranquility. The Hamby House property also hosts the mentorship program and summer camp, After School Buddies for middle school girls. The program supports mentors as they prepare young girls to "survive & thrive" during the somewhat turbulent years of girlhood.
The large property at the Hamby House means there are an awful lot of trees. Thanks to the nomination from one of our clients, we sent them a gift certificate to locally owned Cascades Tree Works in Redmond. Now this summer they'll get a little help with the tree pruning and let the Cascade Tree Works team do the heavy lifting.
We're having a lot of fun with this program and we're so grateful for your thought-provoking stories and desire to lift others up. If you'd like to join in, the next drawing is Wednesday, August 26th. Sign up now.
Some think they're creepy or crawly but if you look closely, you may be surprised by the unique beauty of moths.
In honor of National Moth Week, check out some moth fun facts:
- Part of the Lepidoptera order of insects, moths are among the most diverse and successful organisms on earth.
- Scientists estimate there are 150,000 to more than 500,000 moth species.
- Hercules, the World's largest moth, has a monstrous wingspan of 27 centimeters!
- Male moths can smell female pheromones from 7 miles away.
If you're a Central Oregon local, you're no stranger to the famous Pandora moths who make an appearance every couple of years. This year they've returned as 3-inch long caterpillars, but we won't see the enormous swarms of them until next summer.
A little curious? Just flip on your porch light and discover the fascinating world of moths in your own backyard.
The Week on Wall Street
Stocks slipped in the final days of trading last week on higher jobless claims and rising tensions in the U.S.-China relationship.
The Dow Jones Industrial Average lost 0.76%, while the Standard & Poor’s 500 dipped 0.28%. The Nasdaq Composite Index dropped 1.33% for the week. The MSCI EAFE Index, which tracks developed stock markets overseas, rose 1.24%.[i],[ii],[iii]
Stocks Lose Momentum
Stocks marched higher to begin the week on progress with a COVID-19 vaccine and a string of upbeat corporate quarterly reports. Firming oil prices and the passage of a fiscal stimulus bill by the European Union also helped buoy investors’ spirits.
Market sentiment, however, turned negative after Thursday morning’s report of an uptick in new unemployment claims, which suggested a possible slowdown in hiring. The market was led lower by the technology sector ahead of quarterly reports from some of the sector’s biggest names.[iv]
U.S.-China Tensions Escalate
Tensions escalated last week as the U.S. ordered China to close its consulate in Houston, which the White House claimed was stealing American information. A day earlier, the U.S. had accused China of attempting to steal COVID-19 research data. China responded by ordering the U.S. to close its consulate in the city of Chengdu.[v],[vi]
The markets appear more focused on the apparent deteriorating relations between the two nations, worried about a repeat of the trade battle in 2018. Whether the rancor is managed is likely to remain a top concern for investors in the weeks ahead.
The mega-cap technology companies’ market dominance is a concern to some. Last week it was reported that six of these mega-cap stocks represent 41% of the Nasdaq market capitalization.Five mega-cap names included in the S&P 500 Index account for 22% of that index’s market capitalization.[vii]
Investors have embraced these firms because they appear to be able to show solid financial performance in the midst of an economy coping with COVID-19.
THIS WEEK: KEY ECONOMIC DATA
Monday: Durable Goods Orders.
Wednesday: Federal Open Market Committee (FOMC) Meeting Announcement.
Thursday: Gross Domestic Product (GDP), Jobless Claims.
Friday: Consumer Sentiment.
Source: Econoday, July 24, 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: Advanced Micro Devices (AMD), Visa (V), Pfizer (PFE), McDonalds (MCD), 3M Company (MMM), eBay (EBAY), D.R. Horton (DHI).
Wednesday: Facebook (FB), Boeing (BA), Qualcomm (QCOM), PayPal (PYPL), General Motors (GM), Shopify (SHOP), Teladoc Health (TDOC).
Thursday: Apple (AAPL), Ford (F), Alphabet (GOOGL), Mastercard (MA), Procter & Gamble (PG), Eli Lilly (LLY), United Parcel Service (UPS).
Friday: AbbVie (ABBV), Exxon Mobil (XOM), Caterpillar (CAT), Merck (MRK), Chevron (CVX).
Source: Zacks, July 24, 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.
[ii] The Wall Street Journal, July 24, 2020
[iii] The Wall Street Journal, July 24, 2020
[v] CBSnews.com, July 22, 2020
[vi] APNews.com, July 24, 2020
[vii] CNBC, July 22, 2020