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NOTE FROM PHIL G.
As the United States continues to re-open we are seeing the markets melt up with volatility slowing. We are expecting more good news to come, but there will be some setbacks too. The one area everyone will be watching is unemployment, jobless claims, and basically tracking anything to do with how fast jobs are able to rebound. If jobs are able to bounce back quickly we could be starting off a new bull market. If jobs get caught in the mud then this rebound could stall. So far we're in the bounce back quickly camp. Stay tuned!
For our office we continue to have more zoom meetings each week and if you are interested in setting one up please give us a call. I've actually come to like the software and I think clients are as well. Our office has been open the entire time too, so if you prefer a face to face meeting we are good with that too.
Lastly, if you know of someone close to you who could benefit from our assistance please consider us as a resource to help out.
Hope to see you soon.
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the week on wall street
The shortened week, which began with a powerful two-day rally of trading, was enough to drive the markets into another week of solid gains.
The Dow Jones Industrial Average rose 3.75%, while the Standard & Poor's 500 advanced 3.01%. The Nasdaq Composite Index climbed 1.77% for the week. The MSCI EAFE Index, which tracks developed stock markets overseas, gained 6.18%.1-3
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rising optimism
Returning from Memorial Day weekend, stocks surged on rising optimism over economic re-opening, declines in new infections, and progress in the development of a vaccine.
Stocks continued their march higher, lifted by signs that the White House and Congress may be working together to put together another stimulus package. But the momentum lost steam, in part due to news of China's vote to override Hong Kong's autonomy. Comments by President Trump on the last day of trading eased concerns.4,5
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The recovery from the March lows has been powered by large-cap growth stocks, especially the mega-cap technology names. However, this week saw new sectors leading the market higher, notably the financials and industrials, while the technology and health care sectors lagged.
This leadership rotation is being referred to by some market commentators as the "re-opening trade." If these sectors are to remain leaders, it may hinge on a steady economic recovery and escaping a second wave of COVID-19 infections.
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THE WEEK AHEAD: KEY ECONOMIC DATA
Monday:
Purchasing Managers Manufacturing Index (PMI). Institute for Supply Management (ISM) Manufacturing Index.
Wednesday:
Automated Data Processing (ADP) Employment Report. PMI Services Index. ISM Non-Manufacturing Index.
Thursday:
Jobless Claims.
Friday:
Employment Situation Report.
Source: Econoday, May 29, 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.
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THE WEEK AHEAD: COMPANIES REPORTING EARNINGS
Tuesday:
Dick's Sporting Goods (DKS), Tiffany (TIF), Zoom Video (ZM), Crowdstrike (CRWD).
Wednesday:
Cloudera (CLDR), Campbell Soup (CPB).
Thursday:
Broadcom (AVGO), Docusign (DOCU), Slack Technologies (WORK).
Source: Zacks, May 29, 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.
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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
"Nothing can stop the man with the right mental attitude from achieving his goal; nothing on earth can help the man with the wrong mental attitude."
Thomas Jefferson
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WEEKLY TIP
Spammers love to create emails that mimic ones 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 provider and log in there.
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WEEKLY RIDDLE
Can you name two English words (longer than two letters) that both begin and end with the letters "he" (in that order)?
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LAST WEEK'S RIDDLE
What animal could become extinct worldwide, yet reappear about a year later?
ANSWER: A mule, the offspring of a male donkey and a female horse.
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