Weekly Market Commentary

Weekly Market Commentary 11/20/2020

-Darren Leavitt, CFA

Financial markets were mixed last week.  Cyclicals continued to outperform on news that Moderna and AstraZeneca vaccine trials have shown excellent results.  3rd quarter earnings continued with better than expected results out of NVidia, Target, and Walmart.  Boeing helped the industrial sector’s performance on news that the FAA has approved the 737 Max safe to fly again.  Tesla shares rose 20% on news that the company would be included in the S&P 500 index in December.  Economic data continued to be mixed with solid housing data and disappointing retail sales data.

Investors will undoubtedly take a closer look in the coming week at the Treasury Secretary’s move on Friday to cease five emergency lending facilities under the Cares Act by the end of December.  The move comes as the Federal Reserve has pleaded for more stimulus out of congress, not less.  There was also positive news out of the EU on late Friday that suggests the EU is 95% there on a BREXIT agreement.

The S&P 500 lost 0.8%, the Dow decreased 0.7%, the NASDAQ increased by 0.2%, and the Russell 2000 led with a gain of 2.4%.  US Treasury yields fell on the week, with the 2-year note yield decreasing by two basis points to close at 0.15% and the 10-year bond yield falling six basis points to 0.86%.  Gold prices continued to fall, losing $13.90 to close at $1872.90 an Oz.  Interestingly, Bitcoin eclipsed $18,000 on the week.  Oil prices increased another 5% or $2.05 to close at 42.17 a barrel, which again helped propel the energy sector higher for a second week.  There were no changes to our models during the week.

The information in this Market Commentary is for general informational and educational purposes only. Unless otherwise stated, all information and opinion contained in these materials were produced by Foundations Investment Advisers, LLC (“FIA”) and other publicly available sources believed to be accurate and reliable.  No representations are made by FIA or its affiliates as to the informational accuracy or completeness.  All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation. No party, including but not limited to, FIA and its affiliates, assumes liability for any loss or damage resulting from errors or omissions or reliance on or use of this material.

The views and opinions expressed are those of the authors do not necessarily reflect the official policy or position of FIA or its affiliates.  Information presented is believed to be current, but may change at any time and without notice.  It should not be viewed as personalized investment advice. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. Due to rapidly changing market conditions and the complexity of investment decisions, supplemental information and other sources may be required to make informed investment decisions based on your individual investment objectives and suitability specifications. You should consult with a professional advisor before implementing any strategies discussed. Content should not be viewed as an offer to buy or sell any of the securities mentioned or as legal or tax advice. You should always consult an attorney or tax professional regarding your specific legal or tax situation. Investment advisory services are offered through Foundations Investment Advisors, LLC, an SEC registered investment adviser.


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