Stocks Gain After Volatile Week
Greetings Eagle Community,
While we've all had a lot on our minds lately, for obvious reasons, we've also been thinking about baseball. Yep, you read that right. So, what on earth does baseball have to do with financial planning? Surprisingly, a whole lot more than you'd think. Baseball is known to teach life lessons, to both players and fans. American's favorite pastime teaches us a great deal about patience, focus, and if nothing else, resilience.
- First, good coaching can take an average team to great places. That's where we come in. Just like a seasoned manager for your favorite team, you can be sure we're in the dugout coaching you along as you work toward your financial goals.
- You gotta adjust for curveballs. Even the best players sometimes struggle with certain pitches, but we’re here to help you adjust to those curveballs, decide when to swing, and more importantly, sometimes when not to. As we prepare financial plans we not only hope for the best, but plan for the unexpected, like extra innings, or even the dreaded rain delay.
This year's game might not be what we expected, but we're ready to help you hit a homerun. While one loss can seem like a tragedy, there are plenty of games in the season and we're in it for the long haul with you. So, when things feel scary or uncertain, remember what the great Yogi Berra said, "It ain't over till it's over".
Play Ball!
Your Eagle Wealth Team
Fire up the tv and breakout the Cracker Jacks. Major League Baseball (MLB) is set to start July 23rd and the million-dollar question is, how will it look? Well, probably a little different. With a shortened 60 game season and increased safety precautions, it may not be the game we're used to but we're ready to watch em' knock it out of the park!
Can't wait for the 2020 MLB season? You can watch Korean baseball (KBO) games right now!
Don't forget the snacks. Check out the best snacks for watching baseball. Soft pretzels & beer floats, anyone?
The Week on Wall Street
Stock prices notched solid gains last week, looking past an increase in COVID-19 cases and any potential economic concerns raised by the trend.
The Dow Jones Industrial Average increased by 0.96%, while the Standard & Poor’s 500 climbed 1.76%. The Nasdaq Composite Index bounded 4.01% higher for the week. The MSCI EAFE Index, which tracks developed stock markets overseas, gained just 0.07%.[i],[ii],[iii]
Virus Concerns
Stocks experienced a volatile week as investors negotiated the crosswinds of encouraging overseas economic data with an accelerating number of COVID-19 cases in several states. Ongoing support of the financial markets by the Federal Reserve appeared to offset any concerns about an economic rebound.
The big technology companies continued to shine, leading the Nasdaq Composite to multiple new record highs. News of positive trial results for a potential COVID-19 treatment boosted stocks on the final trading day, closing the week on an encouraging note.
On the Record
Regional Federal Reserve presidents had several speaking engagements last week, and the message was a consistent one: expect the economic recovery to remain bumpy.
Cleveland Fed President Loretta Mester said that the economy in her region is slowing due to rising COVID-19 cases. She linked gains in combating the virus with further economic progress. She also echoed earlier comments by Fed Chairman Powell that more fiscal support is necessary.[iv]
Meanwhile, San Francisco Fed President Mary Daly observed that it was unlikely many companies would be rehiring all their employees. Thomas Barkin, president of Richmond Federal Reserve, reiterated the challenges of a labor recovery, but also spoke of the strain on local and state governments.[v],[vi]
THIS WEEK: KEY ECONOMIC DATA
Tuesday: Consumer Price Index (CPI).
Thursday: Jobless Claims. Retail Sales.
Friday: Housing Starts.
Source: Econoday, July 10, 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.
THIS WEEK: COMPANIES REPORTING EARNINGS
Monday: PepsiCo, Inc. (PEP).
Tuesday: JPMorgan Chase & Co. (JPM), Citigroup (C), Wells Fargo (WFC).
Wednesday: International Business Machines (IBM), Goldman Sachs (GS), eBay, Inc. (EBAY).
Thursday: Microsoft (MSFT), Netflix (NFLX), Bank of America (BAC), Johnson & Johnson (JNJ), UnitedHealth Group (UNH), Abbott Laboratories (ABT), Morgan Stanley (MS), Honeywell International (HON).
Friday: Blackrock, Inc. (BLK).
Source: Zacks, July 10, 2020
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.