Hello Everyone, I hope you are enjoying your weekend. As we move closer to the Presidential Elections we have several factors that could play a large role in the where price action will go from here. Get my insight here in this week’s Round-Up.
Weekly Sound Bites:
• The large-cap benchmarks endured their 4th consecutive week of declines, marking the longest stretch in over a year and sending the S&P 500 Index briefly into correction territory, or down more than 10% from its recent peak…we did see an attempted to rally periodically as the week progressed—with volatility particularly apparent in major technology and internet-related stocks—but continued coronavirus concerns and worries that the market had rebounded too far in the summer seemed to limit any gains…
• The week’s economic data generally indicated a continuing, but slowing, recovery and did not appear to play a major role in pushing the markets in either direction. Thursday brought news that weekly initial jobless claims had risen slightly, to 870,000, while continuing claims had declined much less expected, from 12.7 million to 12.6 million. The manufacturing sector appeared to remain in good shape as companies restocked inventories depleted in the wake of the pandemic, but IHS Markit’s gauge of service sector activity declined for the first time since April, if only slightly…
• The yield on the benchmark 10-year U.S. Treasury note moved slightly lower for the week… Economic and political uncertainty, virus concerns, and equity losses contributed to risk-off sentiment and kept investment-grade corporate bond issuers on the sidelines…Real Bond Yields (nominal less inflation) is currently negative which forces more asset allocation into higher yielding assets, like Corporates, Municipals and Equities…This also has a tendency to inflate higher Corporate Valuations (drives PE Ratio’s higher) and when you add the monetary support the FEDs are also giving to the Corporate Markets we’re seeing new debt issuance exploding higher…
• Rebound in eurozone business activity falters… composite purchasing managers’ index (PMI) showed that the recovery in eurozone business activity lost steam in September as rising coronavirus infection rates and social distancing weakened demand in the services sector. An early estimate of the September PMI came in at 50.1, down from 50.9 in August…
Enjoy this Week’s Round Up
Don’t Be A Rat Brain Trader – Be The Red Stripe Zebra !!
Trade Smart !
hpb
