Key Dates/Data Releases
10/22: Existing home sales
10/24: Durable goods orders, new home sales
|Market Week: October 21, 2019
The Markets (as of market close October 18, 2019)
For the second week in a row, each of the benchmark indexes listed here (except for the Dow) posted gains last week. Stocks got a boost from some strong third-quarter earnings reports as several large financial institutions recorded strong earnings. The S&P 500 came close to reaching its record high earlier in the week, while the small caps of the Russell 2000 surged ahead by more than 1.50%. Long term Treasuries saw yields fall slightly as prices inched up on news of another stalemate on new attempts to reach a Brexit accord and weak U.S. retail figures.
Oil prices dropped last week, closing at $53.71 per barrel by late Friday afternoon, down from the prior week's price of
$54.77. The price of gold (COMEX) rose last week, closing at $1,493.60 by late Friday afternoon, up from the prior week's price of $1,491.70. The national
average retail regular gasoline price was $2.629 per gallon on October 14, 2019,
$0.016 less than the prior week's price and $0.250 less than a year ago.
Close||Prior Week||As of 10/18||Weekly Change||YTD
|Fed. Funds target
Treasuries||2.68%||1.75%||1.74%|| -1 bps||-94 bps
Chart reflects price changes, not total return. Because it
does not include dividends or splits, it should not be used to benchmark
performance of specific investments.
Last Week's Economic News
- Retail sales fell 0.3% in September after climbing 0.6% in August. However, retail sales are up 4.1% over September 2018. Retail trade sales were also down 0.3% for September, as were online sales (nonstore retail). For September, sales grew in clothing and clothing accessories (1.3%) and furniture and home furnishing store (0.6%). Notable decreases were seen in sales for building material and garden equipment and supplies dealers (-1.0%), motor vehicle and parts dealers (-0.9%), and department stores (-1.4%). This report shows consumer spending cooled in September, which may be due to uncertainty about the economy moving forward.
- Industrial production fell 0.4% in September after vaulting 0.8% in August, according to the latest report from the Federal Reserve. Total industrial production is 0.1% lower in September than it was a year earlier. Manufacturing dropped 0.5% last month following a 0.6% bump in August. According to the report, manufacturing output was reduced by a strike at a major manufacturer of motor vehicles. Excluding motor vehicles and parts, manufacturing slipped 0.2%. Mining plummeted 1.3%, while utilities jumped 1.4% in September. This report highlights the impact weakening demand for U.S. exports is having on manufacturing.
- Residential construction could be in for a slowdown in the fall. Building permits for residential housing fell 2.7% in September after climbing in August. Housing starts also plummeted 9.4% last month, while home completions plunged 9.7%. On the plus side, building permits for single-family homes climbed 0.8% in September and single-family housing starts inched up 0.3%. On the other hand, single-family home completions decreased 8.6% from their August totals.
- For the week ended October 12, there were 214,000 claims for unemployment insurance, an increase of 4,000 from the previous week's level. According to the Department of Labor, the advance rate for insured
unemployment claims remained at 1.2% for the week ended October 5. The advance number of those receiving
unemployment insurance benefits during the week ended October 5 was 1,679,000, a decrease of 10,000 from the prior week's level, which was revised up by 5,000.
Eye on the Week Ahead
The latest information on the housing sector is available this week. Sales of existing homes got a much needed boost in August, while new home sales continued to surge. Also out this week is the September report on durable goods orders. New orders have risen 3 consecutive months, but are still down 0.4% over the past 12 months ended in August.
Data sources: News items are based on reports from
multiple commonly available international news sources (i.e. wire services) and
are independently verified when necessary with secondary sources such as
government agencies, corporate press releases, or trade organizations. Market
data: Based on data reported in WSJ Market Data Center (indexes); U.S. Treasury
(Treasury yields); U.S. Energy Information Administration/Bloomberg.com Market
Data (oil spot price, WTI Cushing, OK); www.goldprice.org (spot gold/silver);
Oanda/FX Street (currency exchange rates). All information is based on sources
deemed reliable, but no warranty or guarantee is made as to its accuracy or
completeness. Neither the information nor any opinion expressed herein
constitutes a solicitation for the purchase or sale of any securities, and
should not be relied on as financial advice. Past performance is no guarantee
of future results. All investing involves risk, including the potential loss of
principal, and there can be no guarantee that any investing strategy will be
The Dow Jones Industrial Average (DJIA) is a
price-weighted index composed of 30 widely traded blue-chip U.S. common stocks.
The S&P 500 is a market-cap weighted index composed of the common stocks of
500 leading companies in leading industries of the U.S. economy. The NASDAQ
Composite Index is a market-value weighted index of all common stocks listed on
the NASDAQ stock exchange. The Russell 2000 is a market-cap weighted index
composed of 2,000 U.S. small-cap common stocks. The Global Dow is an equally
weighted index of 150 widely traded blue-chip common stocks worldwide. Market
indices listed are unmanaged and are not available for direct investment.
Jeremy Torgerson is an investment adviser representative with nVest Advisors, LLC, a registered investment adviser that does not provide tax or legal advice. Material presented herein is for informational use only by agents of existing and prospective customers of nVest Advisors, LLC, and is not a specific investment recommendation. nVest Advisors, LLC does not recommend specific investment advice without a signed service agreement with each client. This information is presented for education purposes only, and publication of this material does not represent or imply the recipient or reader has any fiduciary client relationship with the firm. Though information was prepared from sources believed reliable, nVest Advisors, LLC, does not guarantee its accuracy or completeness. nVest Advisors, LLC is an investment adviser firm registered in the states of Texas and Colorado. nVest Advisors, LLC's corporate headquarters is located at 420 Tumbleweed Drive, Brighton, CO 80601. Company mailing address is PO Box 554, Brighton, CO 80601. Past performance is no guarantee of future results.
This communication is strictly intended for individuals residing in the state(s) of CO and TX. No offers may be made or accepted from any resident outside the specific states referenced.
Prepared by Broadridge Advisor Solutions Copyright 2020.
To opt-out of future emails, please click here.