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The Weekly Update

Week of February 11, 2019
By Christopher T. Much, CFP®, AIF®

The Week on Wall Street
Major U.S. stock benchmarks eked out slight gains last week, with corporate profit reports and news about U.S.-China trade negotiations vying for investor attention over five trading sessions.

The big three ended the week little changed from where they settled the previous Friday. The Dow Jones Industrials rose 0.17% percent, while the S&P 500 Index gained 0.05% percent. The NASDAQ Composite ended the week up 0.47%. Looking at international stocks, the MSCI EAFE index retreated 0.47%.

Earnings Scorecard
As of last Friday, 66% of all S&P 500 companies had reported fourth-quarter earnings. So far, 71% of these firms have announced earnings exceeding estimates, and 62% have seen revenues top projections

Halfway through earnings season, 2019 future guidance has been a mixed bag for S&P 500 companies. For Wall Street, future earnings can be just as important as …

The Weekly Update

Week of February 4, 2019
By Christopher T. Much, CFP®, AIF®

Last week closed out one of stocks’ top January performances in years. In fact, both the S&P 500 and Dow posted their best January results in at least 3 decades. For the week, major domestic indexes were also up. The S&P 500 gained 1.57%, the Dow added 1.32%, and the NASDAQ increased 1.38%. The Dow’s performance marked its 6th week of gains in a row. Internationally, MSCI EAFE stocks also posted growth, rising 0.91%.

What drove stock results last week?

As discussed in our previous market update, last week provided a number of details for investors to focus on. Here are some key items that contributed to market performance:

Federal Reserve Meeting: The Fed chose not to increase interest rates above its current 2.25% – 2.50% target. When releasing this update, the central bank noted that it would be “patient” …

The Weekly Update

Week of January 28, 2019
By Christopher T. Much, CFP®, AIF®

For the first time in months, U.S. markets experienced little movement last week. The Dow and NASDAQ did have their 5th week of gains in a row, but their increases were small: 0.12% and 0.11%, respectively. Meanwhile, the S&P 500 broke its 4-week winning streak with a 0.22% loss. Internationally, the MSCI EAFE also posted modest returns, gaining 0.47% for the week.

What topics were on investors’ minds?

Despite the relative lack of market drama last week, investors still had plenty to consider. For example, the following details emerged:

• Conflicting messages came out on trade tension with China.
• The International Monetary Fund (IMF) downgraded its forecast for global growth.
• Corporate earnings season continued.

In addition, the longest Federal government shutdown in history ended. After 35 days, the House and Senate voted unanimously to reopen the partially closed government. President Trump …

Top 10 Pieces of Content from 2018

Taking a quick look back at 2018, we’re excited to share with you the content that our readers enjoyed the most. Grab a copy of the PDF with our most engaging pieces to save and share. http://bit.ly/2018_top_content

The Weekly Update

Week of January 21, 2019
By Christopher T. Much, CFP®, AIF®

U.S. markets were up again last week, as major domestic indexes posted their 4th weekly gains in a row. In fact, the S&P 500 was no longer in correction territory at Friday’s close—and was in the middle of its best yearly start since 1987.

For the week, the S&P 500 gained 2.87%, the Dow added 2.96%, and the NASDAQ increased by 2.66%. So far, all three indexes are up more than 5% in 2019. Internationally, the MSCI EAFE also ended the week in positive territory, posting a 1.06% gain.

What is driving the rally?

Once again, developments in our ongoing trade negotiations with China contributed to the performance. On Thursday, a report emerged that the U.S. was weighing whether to lift tariffs on Chinese imports. However, the Treasury Department said Secretary Steve Mnuchin had not recommended this action. Then, on …

The Weekly Update

Week of January 14, 2019
By Christopher T. Much, CFP®, AIF®

After months of volatility, markets relaxed a bit last week. For the first time since October, the S&P 500 went 5 days without a 1% gain or loss. The Cboe Volatility Index, or VIX, also fell to lower than 20—in December, it spiked above 35.

For the week, the S&P 500 added 2.54%, the Dow gained 2.40%, and the NASDAQ increased 3.45%. All three indexes are in positive territory for 2019. International stocks in the MSCI EAFE grew as well, with a 2.85% weekly gain.

What drove last week’s gains?
Updates on trade and monetary policy contributed to investor decisions, yet again.

1. The Federal Reserve made dovish comments.
   Last week, multiple Fed officials gave speeches indicating our central bank would carefully approach its interest rate decisions in 2019. Fed Chairman Jerome Powell described the policies as “flexible” and “patient.”
2. A trade …
   

The Weekly Update

Week of January, 7 2019
By Christopher T. Much, CFP®, AIF®

U.S. markets experienced more wild sessions last week before ending in positive territory as the recent turbulence continued. In fact, we are currently in the middle of some of the most volatile market performance in more than eight years. For the week, the S&P 500 gained 1.86%, the Dow added 1.61%, and the NASDAQ increased 2.34%. MSCI EAFE stocks also increased, posting a 1.42% weekly gain.

While the results may not seem especially dramatic, the path to get there certainly was. On Thursday, January 3, domestic stocks plunged, as factory data and a tech warning spooked investors. Then, the next day, the S&P 500, Dow, and NASDAQ each gained at least 3.3%. Friday’s performance marked one of the largest rallies since the beginning of this bull market.

What drove the market rally?

Two key events contributed to the huge jumps …

The Weekly Update

Week of December 31, 2018
By Christopher T. Much, CFP®, AIF®

The close of the year provides an opportunity for investors to step back and consider the wider financial landscape. This week, we’re reviewing some key issues that defined 2018, as well as some factors that may influence financial markets in the coming year.

Year in Review

Wall Street began 2018 in rally mode, as enthusiasm for the 2017 Tax Cuts and Jobs Act spilled over into the New Year. Strong economic news encouraged investors, who put aside fears that rising inflation may lead to higher interest rates. What Wall Street did not see coming were the spring and summer trade disputes with China, Canada, Mexico, and the European Union. Fear of a global economic slowdown contributed to a sharp decline in stock prices in October. U.S. economic growth forecasts were tempered in November for 2019, with bull and bears …