Broker Check


THIS WEEK'S UPDATE

| October 07, 2020
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The Week on Wall Street
Stocks advanced last week, propelled by hopes that legislators may reach an agreement for a new fiscal stimulus package and optimism generated by a few corporate deal announcements and initial public offerings.  The Dow Jones Industrial Average rose 1.87%, while the Standard & Poor’s 500 increased 1.52%. The Nasdaq Composite index gained 1.48% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, advanced 1.56%.
 
U.S. equity indices stumbled on Friday after President Trump tested positive for COVID-19, creating a volatile October surprise for investors. Lawmakers reportedly made progress on coronavirus relief bill efforts, putting pressure on the U.S. dollar, as a flurry of Friday headlines emerged that targeted assistance for airlines and cruise lines may be imminent.
 
THE WEEK AHEAD: KEY ECONOMIC DATA
Monday: Purchasing Managers Index (PMI) Composite Final. Institute for Supply Management (ISM) Services Index. 
Tuesday: Job Openings and Labor Turnover Survey (JOLTS).
Wednesday: Federal Open Market Committee (FOMC) Meeting Minutes. 
Thursday: Jobless Claims.
 
THE WEEK AHEAD: NOTABLE COMPANIES REPORTING EARNINGS
Tuesday: Paychex Inc. (PAYX), Levi Strauss (LEVI).
 
Final Thoughts
As the U.S. presidential election draws near, expect to see more and more headlines that propose, "What will happen next if this person is elected?" or, "What policy changes should you prepare for in the next four years?"
 
In reality, however, it isn't easy to anticipate what may happen with the financial markets after the November elections. An ambitious investor would have to forecast the election results, evaluate which policies may become law, estimate a potential economic impact, and assess how the financial markets might react. That's a tall order. 
 
Remember, in addition to the presidency, a total of 35 Senate seats and 435 Congressional seats will be on the ballot. The makeup of the country's executive and legislative branches may look much different—or very similar—in 2021. 
 
Our role is to help guide and equip clients with the tools you need regardless of who controls the White House or Congress. We've been through several elections, and we're not going to be influenced by a headline that speculates about a policy or projects a new approach.
 
For now, our team—like you—is looking forward to how the elections will unfold. If you have specific questions about a policy change discussed by one of the candidates, please give us a call.

Have good week!

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