Weekly Market Snapshot: October 09, 2020
Market related news for the week ending October 9, 2020
- Monday stocks and oil rose after President Trump’s doctor said he could be released from hospital that same day.
- Tuesday Fed Reserve Chairman Powell said aggressive policy help for the economy needs to continue. He told the National Association for Business Economics that “the risks of overdoing it seem, for now, to be smaller.”
- Tuesday the Dow swung 600 points after President Trump tweeted that he had instructed his representatives to stop negotiating on a stimulus package until after the election. He later tweeted that he would be willing to sign a separate bill giving another round of $1,200 stimulus checks, $25 billion for airlines and another $135 billion for the Paycheck Protection Program. Stocks pushed higher Wednesday on the news.
- Wednesday New York closed schools and non-essential businesses in nine zip codes to avert a “second wave” of COVID-19.
- Thursday Citigroup was fined $400 million for “longstanding failure” to resolve its risk and data systems.
- Friday the Wall Street Journal reported Advanced Micro Devices are in advanced talks to buy rival chip maker Xilinx in a deal that could be valued at more than $30 billion. Meanwhile NXP Semiconductor raised third-quarter revenue guidance.
- Stocks ended the week with their best performance since August. The Dow jumped 3.3%, the S&P500 climbed 3.8%, and the Nasdaq rallied 4.6%.
Economic news for the week ending October 9, 2020
- Monday: Markit Services PMI for September came in at 54.6. Markit Composite PMI was 54.3.
- Monday: ISM Non-manufacturing Purchasing Managers’ Index for September was 57.8, higher than expected.
- Tuesday: JOLT Survey for August showed 6.493 million job openings, the first monthly drop in total job openings since the March/April crash in the labor market.
- Thursday: Initial Jobless claims for week 10/3 were 840,000. The prior week’s figure was revised up to 849,000 from an initial 837,000. Continuing claims as of 9/26 were 10.976 million, down 1.003 million from the previous week’s reading, which itself was revised down to 11.979 million. Data continues to be affected by California’s number which is still frozen after two weeks in order to investigate the extent of fraudulent claims and other administrative issues.
Economic events for the week ending October 16, 2020
(all times listed are Eastern)
- Tuesday: Core CPI for September at 8.30am.
- Wednesday: PPI for September at 8.30am.
- Thursday: Initial Jobless Claims for week 10/10 at 8.30am.
- Thursday: Philadelphia Fed Manufacturing Index for October at 8.30am.
- Thursday: NY Empire State Manufacturing Index for October at 8.30am.
- Friday: Retails Sales for September at 8.30am.
- Friday: Industrial Production for September at 9.15am.
- Friday: Michigan Consumer Sentiment for October at 10.00am.
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