April  21, 2020
WEEKLY ECONOMIC UPDATE
the week on wall street 

Stock prices pushed higher last week as news of a White House plan to reopen the economy and reports of a potential COVID-19 treatment helped the market overcome weak economic data and an ugly start to the corporate earnings season.

The Dow Jones Industrial Average rose 2.21%, while the Standard & Poor's 500 advanced 3.04%. The Nasdaq Composite Index gained 6.09% for the week. The MSCI EAFE Index, which tracks developed overseas stock markets, slumped 1.75%. 1,2,3
reality hits
 
Until last week, the extent of the economic damage from COVID-19 lacked a lot of hard data. With the release of retail sales (down 8.7% for March), industrial production (down 5.4% in March), and new jobless claims of 5.2 million (bringing the four-week total to 22 million), the scope of economic trouble became clearer. 4,5 ,6

Stocks wavered throughout the week as investors digested the economic data and balanced the reports against signs that the pandemic may have peaked. With news of a plan to restart the economy and promising test results of a COVID-19 treatment, market sentiment turned positive, sending stocks higher on the final day of trading and cementing the second consecutive week of gains.
CORPORATE EARNINGS

Large banks kicked off the quarterly earnings season, reporting declines in profits as they hiked loan loss reserves and saw a contraction in consumer credit card use. The large loan loss reserves represent a sobering view on just how much the banks believe small businesses and consumers may be affected by the economic downturn.
FINAL THOUGHT

With bank earnings reports, investors got an important - but limited - view of the state of the economy. This week's earnings reports are expected to provide a much broader cross-section of the economy, with a number of consumer products, technology, industrial, transportation, and communication services companies reporting.
THE WEEK AHEAD: KEY ECONOMIC DATA

Tuesday:  Existing Home Sales.

Thursday: New Home Sales. Jobless Claims.

Friday: Durable Goods Orders. Consumer Sentiment.

Source: Econoday, April 17, 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.
THE WEEK AHEAD: COMPANIES REPORTING EARNINGS

Monday:  IBM (IBM), Halliburton (HAL)

Tuesday: Netflix (NFLX), Procter & Gamble (PG), Coca-Cola (KO), United Airlines (UA)

Wednesday: Facebook (FB), AT&T (T), Boeing (BA), Tesla (TSLA), Visa (V)

Thursday: Amazon (AMZN), Intel (INTC), Starbucks (SBUX), 3M Company (MMM), Southwest Airlines (LUV)

Friday: Verizon (VZ), American Airlines (AAL), American Express (AXP)

Source: Zacks, April 17, 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.
Phil Guerrero, CFP®
President
Wealth Advisor
phil@pmgwealth.com

George Maroudas
Wealth Advisor
george@pmgwealth.com

Terry Maziarka
Client Service Manager
terry@pmgwealth.com

847.550.6100
WEEKLY QUOTE
 
"In a society of super-sophisticated communication, we often suffer from a shortage of listeners."

Erma Bombeck
WEEKLY TIP

A cleverly promoted, inexpensive customer loyalty program may help your business realize improved long-term cash flow.
WEEKLY RIDDLE

Can you name a sport in which neither the spectators nor the participants know the score or the winner until the match ends?
LAST WEEK'S RIDDLE
 
Can you name a vegetable or fruit that is never sold frozen, canned, processed, cooked, or in any other form except fresh?   

ANSWER: Lettuce. 
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CITATIONS:
1 - The Wall Street Journal, April 17, 2020.
2 - The Wall Street Journal, April 17, 2020.
3 - The Wall Street Journal, April 17, 2020.
4 - The Wall Street Journal, April 15, 2020.
5 - MarketWatch, April 15, 2020.
6 - The Wall Street Journal, April 16, 2020.

CHART CITATIONS:
The Wall Street Journal, April 17, 2020.
The Wall Street Journal, April 17, 2020.
Treasury.gov, April 17, 2020.
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