Broker Check


THIS WEEK'S UPDATE

| August 24, 2021
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THE WEEK ON WALL STREET

Stocks turned lower last week amid the increasing probability of a Fed tapering,

mixed economic data, and growing concerns about the economic impact of the Delta

variant. The Dow Jones Industrial Average slumped 1.11%, while the Standard &

Poor’s 500 lost 0.59%. The Nasdaq Composite index slipped 0.73%. The MSCI

EAFE index, which tracks developed overseas stock markets, surrendered 2.94%.


UNSETTLING NEWS

After the Dow Industrials and S&P 500 index climbed to new record highs to begin

the week, stocks pulled back amid weaker-than-expected retail sales, festering

concerns about the Delta variant, and slowing growth in China. The stock market

retreat accelerated mid-week with the release of the FOMC (Federal Open Market

Committee) meeting minutes, which signaled that Fed officials may be ready to

begin reducing its monthly bond purchases before the end of the year. Stocks

managed to stabilize on Friday, paring some of the week’s losses. Consumer staples,

health care, real estate, and utilities were the top-performing groups.

 
TAPER BY YEAR END?

Two weeks ago, multiple regional Federal Reserve Bank presidents suggested that

the economy was strong enough to justify tapering the Fed’s monthly bond

purchases. Last week, that chorus grew a bit louder with the release of minutes from

July’s FOMC (Federal Open Market Committee) meeting. The precise timing was

left undecided, with some officials believing it should begin before year-end, while

others thought waiting until the start of the new year was the better choice.

 
THE WEEK AHEAD: KEY ECONOMIC DATA

Monday: Existing Home Sales.PMI (Purchasing Managers’ Index) Composite Flash.

Tuesday: New Home Sales. 

Wednesday: Durable Goods Orders. 

Thursday: Jobless Claims. Gross Domestic Product (GDP).

Friday: Consumer Sentiment.

 
THE WEEK AHEAD: NOTABLE COMPANIES REPORTING EARNINGS

Monday: JD.com, Inc. (JD), Palo Alto Networks, Inc. (PANW).

Tuesday: Best Buy Co. (BBY), Intuit, Inc. (INTU).

Wednesday: Salesforce.com (CRM), Ulta Beauty, Inc. (ULTA), Autodesk, Inc.

(ADSK).

Thursday: Marvell Technology, Inc. (MRVL), Workday, Inc. (WDAY), Dollar Tree

(DLTR), Dell Technologies (DELL), VMware, Inc. (VMW), Peloton Interactive, Inc.

(PTON).

 
FINAL THOUGHTS

While the media may not report it, there is some good news on the horizon. New

Covid cases in Florida are beginning to roll over.  Very little has been done at the

state level to mitigate spread of the virus.  It took 40 days for cases to peak which

may be a good model for the rest of the country.  Beyond Covid, watch for news from

the Fed’s Jackson Hole symposium this week.  They decided to hold it virtually this

year because of the Delta variant, so many think they will be sensitive to the new

cases popping up around the country and be less motivated to taper interest rates

sooner rather than later.  Stay tuned…

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