Last Week’s Highlights:

U.S. equities were higher last week across various indexes, as stocks were helped by encouraging employment numbers. Nonfarm payroll employment climbed by a stronger-than-expected 1.8 million in July. That was lower, however, than the 4.8 million and 2.7 million totals for June and May, respectively. Earning season continued with 82% of S&P components exceeding analyst forecasts so far this quarter, well above the 71% average during the past four quarters. Corporate America has held up better than many expectations according to these relatively upbeat results. For the week, the Dow Jones Industrial Average (DJIA) rallied 1,005.16 points, or 3.8%, to 27,433.48, while the S&P 500 rose 2.5% to 3351.28. The NASDAQ gained 2.5%, closing at 11,010.

Looking Ahead:

Second-quarter earnings season continues as a number of S&P 500 components release results this week beginning with Duke Energy (DUK), Marriott International (MAR) and Simon Property Group (SPG) on Monday. The Bureau of Labor Statistics (BLS) reports its Job Openings and Labor Turnover Survey for June – economists call for 5.1 million job openings on the last business day of June, down from 5.4 million in May. Sysco (SYY) announces financial results on Tuesday. The BLS releases the producer price index (PPI) for July, which is expected to rise 0.2% month over month after falling 0.2% in June. Wednesday brings earnings releases from Cisco Systems (CSCO) and Lyft (LYFT). The BLS releases the consumer price (CPI) data for July – consensus estimates call for a 0.7% rise from last year’s number. Applied Materials (AMAT), Baidu (BIDU) and Brookfield Asset Management (BAM) report financials on Thursday. On Friday, the Census Bureau announces retail sales data for July – economists forecast a 2% monthly rise in retail sales.

All of us at Tufton Capital wish you a safe and healthy week.

Last Week’s Highlights:

U.S. equities declined modestly last week, while long-term bond yields approached record lows. The S&P 500 turned positive for 2020 briefly before pulling back on escalating concerns over U.S/Chinese trade tensions. Initial jobless claims increased last week (to 1.4 million) for the first time since March, raising worries that the economic recovery may be starting to stall. For the week, the Dow Jones Industrial Average (DJIA) slipped 202.06 points, or 0.8%, to 26,469.89, while the S&P 500 declined 0.3% to 3215.63. The NASDAQ fell 1.3%, closing at 10,363.18.

Looking Ahead:

We’re in the thick of second-quarter earnings season, as many S&P 500 components release results this week beginning with F5 Networks (FFIV), Hasbro (HAS) and SAP (SAP) on Monday. The Census Bureau reports the Durable Goods number for June – expectations call for a 5.5% rise in new orders for durable manufactured goods, to $205 billion, after a 15.7% jump in May. Tuesday is packed with earnings as we’ll see financial results from 3M (MMM), Advanced Micro Devices (AMD), Altria Group (MO), Mondelez International (MDLZ), Raytheon Technologies (RTX) and others. The Conference Board releases its Consumer Confidence Index for June – economists look for a 95.5 reading, slightly below May’s 98.1 print. Wednesday brings earnings from Boeing (BA), Crown Castle International (CCI), General Electric (GE), Qualcomm (QCOM), among others. Alphabet (GOOG), Amazon.com (AMZN), Apple (AAPL), Ford Motor (F) and Procter & Gamble (PG) are among many companies releasing second-quarter financial results on Thursday. The Bureau of Economic Analysis reports gross domestic product (GDP) for the second quarter – consensus estimates call for a decline of 34% after a 5% decline in the first quarter. The business week ends with earnings reports from AbbVie (ABBV), Caterpillar (CAT), Chevron (CVX) and Exxon Mobil (XOM) on Friday. The Institute for Supply Management reports its Chicago Purchasing Manager Index for July – economists look for a 42 reading, above June’s 36.6 print but still below the expansionary level of 50, which the index hasn’t surpassed since last summer.

All of us at Tufton Capital wish you a safe and healthy week.

Last Week’s Highlights:

U.S. equities finished higher, capping the shortened July 4th holiday week. The second quarter came to a close on Tuesday with stocks all-but reversing the pandemic-related weakness experienced earlier in the year. The Dow Jones Industrial Average (DJIA) had its best quarter on record since 1987, closing up 17.8% in Q2. For the week, the DJIA rallied 811.81 points to 25,827.36, while the S&P 500 rose 4.0% to 3130.01. The tech-heavy NASDAQ increased 4.6%, closing at 10,207.63, an all-time high.

Looking Ahead:

The Institute for Supply Management releases its Non-Manufacturing Purchasing Managers’ Index for June on Monday – economists forecast a 54.5 reading, a return above the expansionary level of 50 after two months below it. Levi Strauss (LEVI) and Paychex (PAYX) report quarterly results on Tuesday. The Bureau of Labor Statistics announces its Job Openings and Labor Turnover Survey for May – estimates call for 4.9 million job openings on the last business day of May, down from five million in April. Wednesday brings earnings results from Bed Bath & Beyond (BBBY) and MSC Industrial Direct (MSM). Costco Wholesale (COST) releases sales results for June. The Federal Reserve reports consumer credit data for May – forecasters expect outstanding consumer credit to decline for a third month in a row. Walgreens Boots Alliance (WBA) reports fiscal third-quarter results on Thursday. On Friday, the Bureau of Labor Statistics releases its producer price index (PPI) for June – estimates call for a 0.4% monthly gain, which would match May’s increase.

All of us at Tufton Capital wish you a safe and healthy week.

Last Week’s Highlights:

U.S. equities started the week on a positive note, as business re-openings continued throughout the country and solid economic news helped boost investors’ moods. The rally was short-lived, however, as rising COVID-19 case numbers were reported across the Sunbelt. Bank stocks were hit late in the week after an unfavorable result in the Federal Reserve’s latest stress test. An advertiser boycott at Facebook (FB) dragged down the market and especially hurt large technology stocks. For the week, the Dow Jones Industrial Average (DJIA) fell 855.91 points to 25,015.55, while the S&P 500 dropped 2.9% to 3009.05. The tech-heavy NASDAQ declined 1.9%, closing at 9757.22.

Looking Ahead:

Micron Technology (MU) releases fiscal third-quarter numbers on Monday. The National Association of Realtors reports its Pending Home Sales Index for May – economists forecast a sharp rebound of 25%, to an 89 reading. Conagra Brands (CAG) and FedEx (FDX) announce their financial results on Tuesday. The Conference Board releases its Consumer Confidence Index for June – expectations call for a 90 level, up from 86.6 in May. Wednesday brings earnings reports from General Mills (GIS) and Constellation Brands (STZ). The Federal Open Market Committee reports the minutes of its June monetary-policy meeting. ADP releases its National Employment Report from June – economists expect a gain of 2.9 million private-sector jobs, a large improvement over May’s 2.8 million drop. On Thursday, the Department of Labor reports on initial jobless claims for the week ended on June 27th – jobless claims have fallen for 12 consecutive weeks since peaking at 6.9 million in late March. U.S. equity and fixed-income markets are closed Friday in observance of Independence Day.

All of us at Tufton Capital wish you a safe and healthy week.

Last Week’s Highlights:

U.S. equities rallied early in the week after the Federal Reserve said it would expand its bond buying program. Strong retail sales numbers and news of a promising steroid for severely ill COVID-19 patients also helped boost stocks. The market wavered later in the week on renewed virus fears. On Friday, Apple (AAPL) announced that it was closing stores in four states that were experiencing an increase in coronavirus cases. Concerns that other companies could follow suit sent the major exchanges falling to end the week. Last week, the Dow Jones Industrial Average (DJIA) rose 265.92 points to 25,871.46, while the S&P 500 advanced 1.9% to 3097.92. The tech-heavy NASDAQ gained 3.7%, closing at 9946.12.

Looking Ahead:

Bristol-Myers Squibb (BMY) hosts a virtual investor meeting on Monday – the company’s management team will discuss drugs in the pipeline, with a focus on its immune-oncology portfolio. The National Association of Realtors reports existing-home sales for May – consensus estimates call for a seasonally adjusted annual rate of 4.2 million homes sold, down from 4.3 million in April. On Tuesday, Kansas City Southern (KSU) webcasts an investor meeting. IHS Markit announces its Manufacturing Purchasing Managers’ Index and Services PMI for June – expectations call for a 44 reading for both indexes. The Federal Housing Finance Agency releases its U.S. House Price Index for April on Wednesday – prices rose 5.7% year-over-year in the first quarter. Thursday brings earnings reports from spice maker McCormick (MKC) as well as Accenture (ACN) and Nike (NKE). The Census Bureau announces the durable goods report for May – new orders for manufactured durable goods are expected to rise by 9.8%, to $186 billion. On Friday, the Bureau of Economic Analysis reports personal income and spending for May – expectations call for a 6% decline in income, after an unexpected 10.5% jump in April.

All of us at Tufton Capital wish you a safe and healthy week.

Last Week’s Highlights:

U.S. equities posted their worst weekly decline since March as fears of a second wave of infections and doubts about a speedy economic recovery dampened investor sentiment. The Federal Reserve indicated that interest rates are likely to remain near zero until 2022 and issued a cautious outlook for the economy. For the week, the Dow Jones Industrial Average (DJIA) fell 1505.44 points to 25,605.54, while the S&P 500 dropped 4.8% to 3041.31. The tech-heavy NASDAQ declined 2.3%, closing at 9588.81.

Looking Ahead:

The Federal Reserve Bank of New York releases its Empire State Manufacturing Survey for June on Monday – economists forecast a -27.5 reading, an improvement from May’s -48.5 print. Groupon (GRPN), Oracle (ORCL) and H&R Block (HRB) report quarterly earnings on Tuesday. Federal Reserve Chairman Jerome Powell is scheduled to testify before Congressional hearings on the central bank’s semiannual monetary policy report. The Census Bureau releases new residential construction data for May on Wednesday – economists forecast housing starts at a seasonally adjusted annual rate of 1.12 million. Thursday brings financial results from Kroger (KR) and At Home Group (HOME). The Department of Labor reports seasonally adjusted initial jobless claims for the week ending June 13th – weekly claims have been falling from their unprecedented high levels earlier this year. Lyft (LYFT), Slack Technologies (WORK) and Deutsche Telekom (DTEGY) are among the companies holding virtual shareholder annual meetings on Friday. CarMax (KMX) and Jabil (JBL) host quarterly earnings conference calls.

All of us at Tufton Capital wish you a safe and healthy week.

Last Week’s Highlights:

U.S. equities soared higher Friday after the May employment report showed that the country added 2.5 jobs last month, well above economists’ estimates for a loss of 8 million. The Dow Jones Industrial Average (DJIA) jumped over 800 points, or 3.2%, extending its gain for the week to 6.8% and marking the best week for the Dow in over two months. Investors continue to be encouraged by signs of states and businesses around the country reopening, helping stocks rebound from their March lows. For the week, the Dow rose 1727.87 points to 27,110.98, while the S&P 500 rallied 4.9% to 3193.93. The tech-heavy NASDAQ advanced 3.4%, closing at 9814.08. Since its bottom on March 23rd, the S&P has shot up almost 40% – the highest return over such a short period since 1933. Year-to-date, the S&P is down less than 3%, including dividends.

Looking Ahead:

Coupa Software (COUP) and Casey’s General Stores (CASY) report earnings on Monday. Look for financial results from Brown-Forman (BF), Chewy (CHWY) and HD Supply Holdings (HDS) on Tuesday. Nvidia (NVDA), Omnicom Group (OMC) and TJX Cos. (TJX) hold their annual shareholder meetings. The Bureau of Labor Statistics (BLS) releases its Job Openings and Labor Turnover Survey for April – economists forecast 5.9 million job openings on the last business day of April, down from 6.2 million in March. American Airlines (AAL), Caterpillar (CAT) and Target (TGT) hold shareholder meetings on Wednesday. The Federal Open Market Committee announces its monetary policy decision – the FOMC is sure to face questions about possible negative interest rates in the U.S. Adobe (ADBE) and Lululemon Athletica (LULU) release financials on Thursday. The BLS reports the producer price index (PPI) for May – consensus estimates call for a 0.1% uptick in the PPI, while the core PPI is expected to gain 0.2%. PVH (PVH) and Centene (CNC) hold investor calls on Friday to discuss earnings. The University of Michigan releases its Consumer Sentiment Index for June – economists forecast a 72.3 reading, about even with the previous two months’ data, and well below the recent peak of 101 reached in February (which occurred shortly before the COCID-19 outbreak).

All of us at Tufton Capital wish you a safe and healthy week.

Last Week’s Highlights:

U.S. equities notched a second consecutive week of strong gains, as the S&P 500 recorded its best two-month performance in over ten years. Investors continue to be encouraged recently by signs of states and businesses around the country reopening, helping stocks rebound from their March lows. For the week, the Dow Jones Industrial Average (DJIA) rose 917.95 points, or 3.8%, to 25,383.11, while the S&P rallied 3.0% to 3044.31. The tech-heavy NASDAQ advanced 1.8%, closing at 9489.87. For the month of May, the S&P and DJIA both climbed by over 4%, building on April’s robust rally when the indexes posted their best monthly percentage gains since 1987. A market rotation has occurred in recent days, as market leadership has shifted from the tech giants (including Microsoft (MSFT), Amazon.com (AMZN) and Facebook (FB)) to industries that should benefit as the economy continues to rebound. These industries and their companies, led by the financials and the energy sector, have outperformed recently as this rotation continues.

Looking Ahead:

Monday is June 1st (rabbit! rabbit!). The Institute for Supply Management releases its Manufacturing Purchasing Managers’ Index for May – economists forecast a rebound to a 43 reading from April’s 41.5 print. Tuesday brings earnings results from Dick’s Sporting Goods (DKS) and Zoom Video Communications (ZM). Campbell Soup (CPB) announces financials on Wednesday. Alphabet (GOOG), Biogen (BIIB), Comcast (CMCSA) and Walmart (WMT) hold their annual shareholder meetings. ADP releases its National Employment Report for May – private-sector employment is expected to decrease by 9.5 million after 20.2 million jobs were lost in April. Broadcom.com (AVGO), Gap (GPS) and Slack Technologies (WORK) hold conference calls on Thursday to discuss quarterly results. The Department of Labor announces initial jobless claims for the week ending May 30th – weekly claims continue to fall from their unprecedented levels. On Friday, the Bureau of Labor Statistics releases the jobs report for May – estimates call for a seven-million drop in nonfarm payrolls after April’s record 20.5 million decline. The unemployment rate is expected to rise to 19% from April’s 14.7%.

All of us at Tufton Capital wish you a safe and healthy week.

Last Week’s Highlights:

Equities started the week with a bang (the Dow surged over 900 points Monday) after Moderna (MRNA) reported a promising Phase 1 trial on its Covid-19 vaccine and Jerome Powell said the Federal Reserve still had tools available to fight the economic crisis. Stocks gave back some of these gains later in the week as more skepticism on the vaccine emerged and tensions with China rose. Equity markets had a very solid week with the Dow Jones Industrial Average (DJIA) rising 779.74 points, or 3.3%, to 24,465.16. The S&P 500 rallied 3.2% to 2955.45, and the NASDAQ advanced 3.4%, closing at 9324.59.

Looking Ahead:

U.S. equity and bond markets are closed on Monday in observance of Memorial Day. AutoZone (AZO), Bank of Nova Scotia (BNS) and Keysight Technologies (KEYS) report earnings results on Tuesday. The Conference Board releases its Consumer Confidence Index for May – the consensus estimate calls for a 87.3 reading, about even with April’s 86.9 print. Wednesday is busy with earnings as investors will focus of financial results from HP, Inc. (HPQ), Royal Bank of Canada (RY), Amerco (UHAL) and Bank of Montreal (BMO). Amazon.com (AMZN), Chevron (CVX), Exxon Mobil (XOM) and Facebook (FB) hold their annual shareholder meetings. Dell Technologies (DELL), Ulta Beauty (ULTA) and Costco Wholesale (COST) release financial results on Thursday. The Census Bureau announces April’s durable-goods report – economists look for a 15% drop in new orders for manufactured durable goods, to $173 billion – similar to March’s 15.3% decline. On Friday, the Institute for Supply Management releases its Chicago Purchasing Managers’ Index for May – a 40 reading is expected, up from April’s 35.4 print.

Happy Memorial Day! All of us at Tufton Capital wish you a safe and healthy week.

Last Week’s Highlights:

Equities posted a strong week as signs or reopening around the world and rising oil prices added to investors’ enthusiasm. The tech-heavy NASDAQ actually edged into the black for 2020 and is up 1.7% for the year. The stock market is indeed forward-looking, as the economic environment continues to be dire – unemployment hit 14.7% in April as 20.5 million jobs were lost. For the week, the Dow Jones Industrial Average (DJIA) rose 607.63 points, or 2.6%, to 24,331.32, while the S&P 500 rallied 3.5% to 2929.80. The NASDAQ soared 6%, closing at 9121.32. The S&P has now recouped about half of its losses from the record high earlier in the year on hopes that economic activity may be bottoming as restrictions ease and economies reopen. Last week, the price of oil recorded its first back-to-back weekly gain since February – oil companies appeared to be cutting production faster than expected and signs of increased demand emerged.

Looking Ahead:

Earning season is winding down, with financial reports coming from Cardinal Health (CAH), Under Armour (UA) and Marriott International (MAR) on Monday. Duke Energy (DUK), Honda Motor (HMC) and Toyota Motor (TM) release earnings results on Tuesday. The Bureau of Labor Statistics (BLS) announces the consumer price index (CPI) for April – economists call for a 0.4% year-over-year uptick, after a 1.5% gain in March. Wednesday brings earnings from Cisco Systems (CSCO) and Sony (SNE). The BLS releases the producer price index (PPI) for April – expectations are for a year-over-year fall of 0.2%, while the core PPI is seen gaining 0.8%. Applied Materials (AMAT) and Brookfield Asset Management (BAM) announce financial results on Thursday. The business week ends with earnings reports from JD.com (JD) and VF Corp. (VFC) on Friday. The Census Bureau releases retail sales data for April – forecasts call for sales to plummet by 10.6%, surpassing March’s 8.4% monthly decline as the steepest on record.

All of us at Tufton Capital wish you a safe and healthy week!

Last Week’s Highlights:

Equities started the week on a positive note, with the S&P 500 rising 3.6% during the first three days, only to fall 3.7% on Thursday and Friday. Even though stocks finished mixed last week, April was the best month since 1987 for the market (up 12.9%!). A slowdown in new coronavirus cases and synchronized initiatives globally have improved trader sentiment from the March 23rd stock market bottom. Earnings season continued with Apple (AAPL) and Amazon.com (AMZN), among many others, reporting financials. Dire economic data, while expected, dampened investors’ moods, as 3.8 million more jobless claims were reported, and March consumer spending fell 7.5%. For the week, the Dow Jones Industrial Average (DJIA) dropped 51.58 points, or 0.2%, to 23,723.69, while the S&P 500 was down 0.2% to 2830.71. The tech-heavy NASDAQ declined 0.3%, closing at 8604.95. Only the small-cap Russell 2000 was able to finish the week higher, up 2.2% to 1260.48.

Looking Ahead:

We’re in the thick of first-quarter earnings season – 150 S&P 500 components release results this week, including big names in media and food. The week begins with financial results from Mosaic (MOS), Tyson Foods (TSN) and Sempra Energy (SRE). On Tuesday, Walt Disney (DIS), DuPont (DD) and Martin Marietta Materials (MLM) report Q1 numbers. American Express (AXP) and General Electric (GE) hold their annual shareholder meetings. Look for earnings results from Ameriprise Financial (AMP), General Motors (GM) and Zoetis (ZTS) on Wednesday. On Thursday, the Department of Labor releases initial jobless claims for the week ending on May 2nd. In the past six weeks, more than 30 million Americans have filed for unemployment benefits, roughly 18% of the workforce. Bristol-Myers Squibb (BMY), Viacom CBS (VIAC) and Raytheon Technologies (RTX) announce earnings. Friday brings financials from Noble Energy (NBL) and Carrier Global (CARR). The Bureau of Labor Statistics releases the jobs report for April – economists call for a decline of 21 million nonfarm payrolls, after a loss of 701,000 in March. The unemployment rate is expected to rise significantly from 4.4% to over 16%.

All of us at Tufton Capital wish you a safe and healthy week!

Last Week’s Highlights:

Stocks and bonds fell sharply early in the week as oil futures crashed, then roared back after another stimulus bill was announced. Earnings season for U.S. companies continued, and more weak economic numbers were released – it was reported that an additional 4.4 million Americans are seeking jobless benefits. For the week, the Dow Jones Industrial Average (DJIA) dropped 467.22 points, or 1.9%, to 23,775.27, while the S&P 500 was down 1.3% to 2836.74 and finished 23% above its March low. The tech-heavy NASDAQ declined 0.2%, closing at 8634.52. Late last week, the World Health Organization accidently released what appeared to be disappointing results from a trial of Gilead Sciences’ (GILD) remdesivir, a potential treatment for COVID-19. While this release caused a 400+ point drop in the Dow on Thursday, the index roared back Friday to close up 260 points, or 1.11% on the day.

Looking Ahead:

We’re in the thick of first-quarter earnings season – 142 S&P 500 components release results this week, followed by a similar number next week. The week begins with financial results from CMS Energy (CMS) and NXP Semiconductors (NXPI) on Monday. Tuesday is a busy one for more earnings, as 3M (MMM), Caterpillar (CAT), Mondelez International (MDLZ) and United Parcel Service (UPS) are among a bevy of companies reporting. The Bank of Japan announces its monetary-policy decision – the central bank is expected to keep its key short-term interest rate at negative 0.1%. Wednesday brings financial results from Anthem (ANTM), Automatic Data Procession (ADP), General Electric (GE) and Northrop Grumman (NOC). The Bureau of Economic Analysis reports its initial estimate of GDP for the first quarter – economists forecast an annualized 4% contraction, compared with a 2.1% growth rate in the fourth quarter of 2019. Altria Group (MO), Apple (APPL), Visa (V) and Comcast (CMCSA) are among the many companies reporting numbers on Thursday. The busy business week ends with results from Chevron (CVX), Honeywell International (HON), Colgate-Palmolive (CL) and Charter Communications (CHTR) on Friday. The Institute for Supply Management reports its Manufacturing Purchasing Managers’ Index for April – expectations are for a 36.1 reading, down from March’s 49.1 print.

All of us at Tufton Capital wish you a safe and healthy week!

Last Week’s Highlights:

Equities rose for the second week in a row, extending a solid rally despite evidence of increasing economic strain due to the coronavirus pandemic. The stock market’s recent strength is a sign that many investors are positioning their portfolios believing that the U.S. will make a speedy recovery when the coronavirus crises eases. Wall Street has been encouraged in recent days by signs that several states will move to resume business, along with hopes that a viable treatment for Covid-19 could be near. For the week, the Dow Jones Industrial Average (DJIA) rose 523.12 points, or 2.2%, to 24,242.49, while the S&P 500 was up 3.0% to 2874.56 and finished 22% off its March low. The tech-heavy NASDAQ increased 6.1%, closing at 8650.14. Earnings season began last week with mixed results. Management teams from JP Morgan Chase (JPM) and Wells Fargo (WFC) predicted a deep recession, and data from oil companies and retailers was, as expected, weak. On a brighter note, an upbeat early report on Gilead Science’s (GILD) Covid-19 treatment added to a significant stock rally on Friday.

Looking Ahead:

Earnings season picks up, beginning with reports from Cadence Design Systems (CDNS), Equifax (EFX), Halliburton (HAL) and Truist Financial (TFC) on Monday. The Federal Reserve Bank of Chicago releases its National Activity Index for March – economists forecast a minus 0.56 reading, below February’s 0.16 print. Chipotle Mexican Grill (CMG), Chubb (CB), Coca-Cola (KO), Emerson Electric (EMR) and Lockheed Martin (LMT) all report financial results on Tuesday. The National Association of Realtors releases existing-home sales data for March – consensus estimates are for a seasonally adjusted annual rate of 5.47 million homes sold, 5.2% below February’s 5.77 million figure. Wednesday brings earnings results from AT&T (T), Biogen (BIIB) and Delta Air Lines (DAL). Capital One Financial (COF), Intel (INTC), Union Pacific (UNP) and Eli Lilly (LLY) announce financial results on Thursday. The Department of Labor releases its initial jobless claims for the week ending on April 18th – over the past month, 22 million people have applied for unemployment benefits, roughly double the total in all of 2019. American Express (AXP) and Verizon Communications (VZ) hold conference calls on Friday to discuss quarterly results. The Census Bureau reports the durable goods number for March – consensus estimates are for a 11% decline in orders for manufactured durable goods.

All of us at Tufton Capital wish you a safe and healthy week!

Last Week’s Highlights:

Equities rose to post one of their biggest weeks of gains, extending a solid rally despite evidence of increasing economic strain due to the coronavirus pandemic. Last week’s dismal jobless claims report (an additional 6.6 million claims were reported) was overshadowed by the Federal Reserve’s announcement of more lending backup. Oil prices surged as OPEC appeared to agree on cutting 10 million barrels a day in output. For the week, the Dow Jones Industrial Average (DJIA) rallied 2666.84 points, or 12.7%, to 23,719.37, while the S&P 500 rose 12.1% to 2789.82 – its best week since 1974 – and finished 25% off its March low. The tech-heavy NASDAQ increased 10.6%, closing at 8153.58.

Looking Ahead:

Many bourses are closed around the world on Monday, including Germany and the United Kingdom, in observance of Easter. Fastenal (FAST), J.B. Hunt Transport Services (JBHT) and Johnson & Johnson (JNJ) report earnings results on Tuesday. The International Monetary Fund releases its April 2020 World Economic Outlook – the IMF’s previous update in January forecasted global gross-domestic-product growth of 3.3% and 3.4% in 2020 and 2021, respectively. Wednesday brings financial results from Bank of America (BAC), Goldman Sachs Group (GS), UnitedHealth Group (UNH) and U.S. Bancorp (USB). The Federal Reserve Bank of New York releases its Empire State Manufacturing Survey for April – expectations call for a minus 32 reading, down from March’s minus 21.5 print. Abbott Laboratories (ABT), Bank of New York Mellon (BK) and Taiwan Semiconductor Manufacturing (TSM) hold conference calls on Thursday to discuss earnings results. The Department of Labor releases initial jobless claims for the week ending on April 11th – over the past three weeks, an unprecedented 16.7 million people have filed unemployment claims. Kansas City Southern (KSU) and State Street (STT) report quarterly results on Friday.

All of us at Tufton Capital wish you a safe and healthy week!

Last Week’s Highlights:

Equities declined last week amid soft economic data and the extension of social-distancing guidelines. Thursday’s jobless claims report exceeded 6.6 million, twice the week-earlier record high. Oil prices surged 32% on prospects of a global deal to cut output and support prices. For the week, the Dow Jones Industrial Average (DJIA) fell 584.25 points, or 2.7%, to 21,052.53, while the S&P 500 dropped 2.1% to 2488.65. The tech-heavy NASDAQ declined 1.7%, closing at 7373.08. Volatility continued in the markets, although at a lower level than investors have experienced in past weeks. The CBOE Volatility Index (or VIX) tumbled 29% last week, finishing below 50 for the first time since early March. While the VIX still trades at an elevated level, it’s far below the 70s and 80s levels seen in recent weeks. New York remained the epicenter of the Covid-19 crisis, with cases and deaths mounting as it neared its apex. Meanwhile, new clusters erupted across the U.S. – Louisiana, Florida, Georgia and Texas – as more states moved to shelter-at-home policies and governors pleaded for medical equipment from the federal government.

Looking Ahead:

Stock futures rallied Sunday night, a hopeful sign as Wall Street begins another unprecedented week of trading. On Monday, the Saudi Arabia-led Organization of Petroleum Exporting Countries (OPEC) holds an emergency meeting with its non-OPEC allies, notably Russia, in an attempt to stabilize oil prices. Levi Strauss & Co. (LEVI) announces quarterly results on Tuesday. The Federal Reserve reports consumer credit data for February – last year, consumer borrowing climbed 4.5%, to nearly $4.2 trillion, still below the five-year average jump of 5.6%. Costco Wholesale (COST) releases sales data for March on Wednesday. Thursday brings annual shareholder meetings for Adobe (ADBE) and Dow (DOW). The University of Michigan reports its Consumer Sentiment Index for April – economists forecast a 79 reading, a large decline from March’s 89.1 print. On Friday, the Bureau of Labor Statistics (BLS) releases the consumer price index (CPI) for March – consensus estimates are for 1.3% rise year-over-year, after a 2.3% increase in February. Equity and fixed-income markets in the U.S. are closed in observance of Good Friday.

All of us at Tufton Capital wish you a safe and healthy week!