Weekly Market Insights: Dow Hits 30,000

Stocks surged last week, ignited by another COVID-19 vaccine announcement, encouraging economic data, and the easing of political uncertainty. The Dow Jones Industrial Average rose 2.21%, while the Standard & Poor’s 500 added...

Market Insights

Stocks surged last week, ignited by another COVID-19 vaccine announcement, encouraging economic data, and the easing of political uncertainty.

The Dow Jones Industrial Average rose 2.21%, while the Standard & Poor’s 500 added 2.27%. The Nasdaq Composite index, which has led all year, gained 2.96%. The MSCI EAFE index, which tracks developed overseas stock markets, climbed 1.54%.^1,2,3

Dow Breaks 30,000

For the third consecutive week, markets opened on Monday to yet another announcement of a potential COVID-19 vaccine.

Stock prices found additional support on news that President-elect Biden would be nominating Janet Yellen, the former Chair of the Federal Reserve, to be Secretary of the Treasury. Investors reacted well to the choice, encouraged by her previously voiced support for greater fiscal stimulus and relieved that a candidate less antagonistic to the industry was selected.

Positive momentum continued into the following day, driving the Dow Jones Industrial Average, S&P 500 index, and the Russell 2000 to record high levels, with the Dow closing above the 30,000 milestone.⁴

Stocks eased off their highs in pre-Thanksgiving trading, though they recovered some of those losses on Friday, as the S&P 500 and NASDAQ Composite closed with fresh record highs.⁵

A Microcosm of the Economy

The economic outlook has been difficult to figure out due to conflicting signals. One day it’s a historic jump in economic growth; another day it’s a record high in new COVID-19 infections. Last week was a good illustration of this. Reports of healthy consumer spending, a solid rise in durable goods orders, and sales of new homes remaining near almost-14-year highs were balanced by a jump in new jobless claims, a decline in household income, and new state and local COVID-related restrictions.⁶

Last week investors chose to see the glass half full and look past the near-term challenges the economy faces.

This Week: Key Economic Data

Tuesday: Institute for Supply Management (ISM) Manufacturing Index.

Wednesday: Automated Data Processing (ADP) Employment Report.

Thursday: Jobless Claims, Institute for Supply Management (ISM) Services Index.

Friday: Employment Situation, Factory Orders.

^{Source: Econoday, November 27, 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: Zoom Video Communications (ZM)

Tuesday: Salesforce.com (CRM)

Wednesday: Splunk (SPLK), Snowflake, Inc. (SNOW), Crowdstrike Holdings (CRWD)

Thursday: Marvell Technologies (MRVL), Dollar General (DG), Docusign (DOCU)

^{Source: Zacks, November 27, 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.}

“The need for mystery is greater than the need for an answer.”

– Ken Kesey

Stay Safe While Shopping Online

While online shopping can be a convenient way to do your holiday shopping, it’s important to keep your information safe. Here are some tips from the IRS to help.

Make sure the site you are shopping from is secure. You can tell by looking for “https” in the URL. If there isn’t an “s”, be weary of providing your credit card information. You can also look for a lock icon in the URL bar.
Make sure you are using a secure internet connection. Avoid shopping online if you’re using unprotected WiFi, including WiFi networks at the library, work, the mall, or other public places.
Look out for phishing emails, which are emails that come from spam accounts pretending to be from a legitimate business.
Use unique passwords for each of your accounts and make sure your passwords are strong (at least 12 characters, contain upper and lowercase letters, contain numbers, and contain special characters). Don’t use any personal information in your password, such as your name or family’s names.

* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS⁷

Give a Homemade Gift This Holiday Season

With all the buzz surrounding online shopping, it may seem like Black Friday and Cyber Monday deals are the only option for holiday gifts. But, if you want to avoid the crazes at the mall and online and want to give a unique, meaningful gift, look no further than a homemade craft.

Even if you aren’t particularly crafty, some of these options are easy to make and will be a special gift for a loved one:

Homemade candles
Embroidered gift card holders (a perfect personal touch for a gift card)
Bath bombs
Arm-knitted blanket
Clay ring holder using oven-baked clay (no kiln required!)

Tip adapted from The Spruce Crafts⁸

You heard me before, yet you hear me once more. Then I die 'til you call me again. What am I?

Last week’s riddle: What five letters (with no letters used more than once) can be arranged in three ways to make three separate words - the first with one syllable, the second with two syllables, the third with three syllables? Answer: AIDES - 1 syllable, ASIDE - 2 syllables, IDEAS - 3 syllables.