Randy C. Benning, CFP Presents:
THE WEEK ON WALL STREET
Stock prices fell last week as investors considered the potential health and economic
risks of the flu-like coronavirus.
Foreign stock markets, as tracked by the broad MSCI EAFE index, fell 1.03% for the
week. Coincidentally, the S&P 500 lost exactly that much across a 4-day Wall Street
trading week. The Dow Jones Industrial Average declined 1.22%, the Nasdaq
Composite 0.79%. 1,2
FUTURES MARKETS EYE CORONAVIRUS OUTBREAK
By Friday’s closing bell, two cases of coronavirus had been confirmed in the U.S. by
the Centers for Disease Control and Prevention. Sixty-three other potential cases were
being monitored. Twenty-six people had died from the virus in China, where more than
30 million people faced travel restrictions.
This news exerted a drag on stocks in multiple industries. Oil prices also slipped: West
Texas Intermediate crude lost 7.4% for the week to settle at $54.19 Friday. Stock and
commodity traders wondered if the virus would mimic the SARS scare of 2002-03,
which kept Chinese workers and shoppers at home and hurt corporate earnings
worldwide. 3,4
FEWEST HOMES FOR SALE IN 20 YEARS
Existing home sales improved 3.6% in December, according to the National
Association of Realtors. This happened even as the number of listed properties hit a
20-year low. The NAR says that the rate of total U.S. home sales (existing and new)
increased 10.8% in 2019. 5
01272020-DB-3938
WHAT’S AHEAD
Traders will watch not only earnings and economic indicators this week, but also the
Federal Reserve, which meets Tuesday and Wednesday. Will the central bank’s latest
monetary policy statement reveal any subtle change of outlook?
T I P O F T H E W E E K
If you make your retirement money hard to reach, you may be doing
yourself a favor. Tax-advantaged retirement accounts have rules that help
to discourage early withdrawals. Those rules are designed with your future
self in mind, and they exist to make you think twice about tapping such accounts for current needs.
THE WEEK AHEAD: KEY ECONOMIC DATA
Monday: The Census Bureau’s report on December new home sales.
Tuesday: The latest consumer confidence index from the Conference Board.
Wednesday: A monetary policy announcement from the Federal Reserve, followed by a
press conference with Fed chair Jerome Powell.
Thursday: The first estimate of fourth-quarter gross domestic product from the Bureau
of Economic Analysis.
Friday: December consumer spending figures from the Department of Commerce, plus
the final January University of Michigan consumer sentiment index (a gauge of
consumer confidence levels).
Source: MarketWatch, January 24, 2020
The MarketWatch 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.
01272020-DB-3938
THE WEEK AHEAD: COMPANIES REPORTING EARNINGS
Monday: D.R. Horton (DHI), Sprint (S)
Tuesday: Apple (AAPL), Pfizer (PFE), SAP (SAP), United Technologies (UTX)
Wednesday: AT&T (T), Facebook (FB), Mastercard (MA), Microsoft (MSFT)
Thursday: Amazon (AMZN), Coca-Cola (KO), Verizon (VZ), Visa (V)
Friday: Chevron (CVX), ExxonMobil (XOM), Honeywell International (HON)
Source: Zacks.com, January 24, 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.
Randy C. Benning, CFP®, President, License # 0816882, Benning Financial Group, LLC. Investment Advisory Services offered through Benning Financial Group, LLC, A Registered Investment Advisor, Benning Financial Group, LLC
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. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is a market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (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 MSCI EAFE Index is a stock market index that is designed to measure the equity market performance of developed markets outside of the U.S. and Canada. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. 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 – wsj.com/market-data [1/24/20]
2 – quotes.wsj.com/index/XX/MSCI%20GLOBAL/990300/historical-prices [1/24/20]
3 – cnbc.com/2020/01/24/cdc-confirms-second-us-case-of-coronavirus-chicago-resident-diagnosed.html [1/24/20]
4 – cnbc.com/2020/01/24/coronavirus-fear-hits-oil-prices-drop-most-since-may.html [1/24/20]
5 – marketwatch.com/story/existing-home-sales-rebounded-in-december-but-extraordinarily-lean-inventories-are-a-growing-concern-2020-01-22 [1/22/20]
CHART CITATIONS:
wsj.com/market-data [1/24/20]
quotes.wsj.com/index/XX/MSCI%20GLOBAL/990300/historical-prices [1/24/20]
quotes.wsj.com/index/SPX/historical-prices [1/24/20]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldAll [1/24/20]
