Markets moved like they were stuck in the mud. Is this going to continue or was it specific to this week?
Monday
Markets opened the week in the green, but quickly faded to red. Initial optimism came from corporate earnings, however, speculation over stimulus clouded the market in red. The likelihood of stimulus faded across the day as the Tuesday deadline loomed.
Tuesday
The stock market bounced back on Tuesday. The bounce lost steam however as the day wore on. Negotiations were scheduled for 3PM eastern, not giving the markets any time to react to results from those talks. Investor sentiment began to look as though a deal would not be reached.
Wednesday
Markets ebbed and flowed all day on Wednesday as speculation over a stimulus deal remained in focus. The timeline for a deal to get done before the beginning of November has eroded. Markets closed flat on speculation that a deal will not be reached. After hours reporting of earnings should spell strength for the NASDAQ on Thursday.
Thursday
Jobless claims surprisingly improved to 787K and existing home sales rose a robust 9.4%. For perspective, that represents an increase in sales by 560,000! Additionally, earnings from the prior day (after hours) were impressive. Yet, markets still seesawed back and forth for most of Thursday. They ultimately came to rest on a 0.54% gain. Concerns over upcoming events, stimulus, and rising COVID cases all contributed to market conditions. Gilead sciences, Remdesivir received FDA clearance as a treatment for COVID after hours, which helped their stock performance on Friday morning.
Friday
Services data out on Friday showed unexpected strength, coming in at 56.0 when 54.6 was expected. Markets ended the week with a slight up day for Friday. This was encouraging as we headed into the weekend.
Conclusion
The market was pretty boring this week and ended with an overall .52% loss on the week. There was potential throughout the week, however, markets behaved as though they were stuck in the mud. Mounting COVID cases, upcoming events, and tension over stimulus have put a damper on any promising data. Expect this to continue for the next few weeks. After which, markets should be able to respond to isolated closure behavior rather than sweeping shutdowns.
~ Your Future… Our Services… Together! ~
Your interest in our articles helps us reach more people. To show your appreciation for this post, please “like” the article on one of the links below:
FOR MORE INFORMATION:
If you would like to receive this weekly article and other timely information follow us, here.
Always remember that while this is a week in review, this does not trigger or relate to trading activity on your account with Financial Future Services. Broad diversification across several asset classes with a long-term holding strategy is the best strategy in any market environment.
Any and all third-party posts or responses to this blog do not reflect the views of the firm and have not been reviewed by the firm for completeness or accuracy.