THE WEEK ON WALL STREET
News of a new, highly virulent COVID variant triggered a market sell-off on Friday, sending stocks into negative territory for the week.
The Dow Jones Industrial Average slid 1.97%, while the Standard & Poor’s 500 slumped 2.20%. The Nasdaq Composite index lost 3.52% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, dropped 1.68%.1,2,3
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RED FRIDAY
Investors woke up on Black Friday to reports of a mutated COVID variant, reviving fears of potential new economic restrictions. U.S. markets were not alone, as stock prices in Europe and Asia also tumbled.
Friday’s market action saw declines in economic reopening stocks, such as travel and leisure, cyclicals, financials, and energy, while some of the so-called stay-at-home stocks and pharmaceutical stocks experienced gains. Yields retreated amid a flight to safety and the potential that this turn of events may lead to a slowdown in the Fed’s bond tapering program and a delay in contemplated rate hikes. Prior to Thanksgiving the markets had been choppy, but largely trending higher for the week, while yields had moved up with the re-nomination of Fed Chair Powell.
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POWELL RE-NOMINATED
President Biden announced last week that he was re-nominating Jerome Powell to serve another term as chairman of the Federal Reserve Bank, ending market speculation surrounding his re-nomination.
President Biden cited the need for stability and independence in a time of uncertainty in making his decision. While Powell’s re-nomination faced resistance, Senate approval appears likely. Coincident with Powell’s re-nomination, President Biden also nominated Lael Brainard, a member of the Federal Reserve Board of Governors, to serve as vice chair. Investors can soon expect further Fed nominations by the Biden Administration to fill vacancies created by term expirations and retirements.
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THE WEEK AHEAD: KEY ECONOMIC DATA
Tuesday: Consumer Confidence.
Wednesday: ADP (Automated Data Processing) Employment Report. ISM (Institute for Supply Management) Manufacturing Index.
Thursday: Jobless Claims.
Friday: Employment Situation. Factory Orders.
Source: Econoday, November 26, 2021
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
Tuesday: Salesforce.com, Inc. (CRM), Hewlett Packard Enterprise Company (HPE).
Wednesday: Okta, Inc. (OKTA), Snowflake, Inc. (SNOW), CrowdStrike (CRWD).
Thursday: Marvell Technology, Inc. (MRVL), Dollar General (DG), The Kroger Co. (KR), DocuSign (DOCU).
Source: Zacks, November 26, 2021
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.
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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
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WEEKLY QUOTE
"You can't judge right from looking at what's wrong."
Bo Diddley
WEEKLY TIP
Spammers love to create emails that look like they've legitimately come from your bank or credit card issuer. How can you be safe? Never use a "click here to log in" link. Always go directly to the website address for your bank or credit card and log in there.
WEEKLY RIDDLE
What nation has current and former capital cities whose names are anagrams of each other in the English language? (Hint: It is a major player in the global economy.)
LAST WEEK'S RIDDLE
The Cage family has a mother, father, and six sons, and each son has one sister. So, how many people are in his family?
ANSWER: Nine. A mother, father, six brothers, and one sister, as each brother has but one sister.
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This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.
CITATIONS:
1. The Wall Street Journal, November 26, 2021
2. The Wall Street Journal, November 26, 2021
3. The Wall Street Journal, November 26, 2021
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