1/30/20 Market Notes
Stocks ended the session mixed, with all major indexes ending within a small fraction of the flat line on Wednesday. Concerns over the spread of the coronavirus and its potential economic impact relating to supply chain disruptions weighed on market participants. Furthermore, economic news was slightly disappointing as Advance Trade in Goods came in short of forecasts and Pending Homes Sales declined 4.9%, slightly below expectations. The Federal Reserve kept interest rates at current levels, indicating it would adjust Monetary Policy measures as required by changing conditions but that the governing body didn’t see a reason to make adjustments at this time. The benchmark 10 Year Treasury Yield ended below 1.58%, reflecting investor unease with the current global environment. Oil prices continues their recent decline, falling more than 1%, while gold prices rose above their recent high of $1,885 per troy ounce.
European and Asian bourses are trading lower overnight, as new cases of the coronavirus have been identified and the world seems unable to contain the virus. Sympathetically, U.S. premarket equity futures are pointing to a sharply lower open as well. Looking past geopolitical events, investors are sure to focus on the first look at fourth quarter GDP report, which is set to be released at 8:30 AM. Moreover, earnings will be in focus, as Amazon (AMZN), Verizon (VZ), and Visa (V) are amongst widely held stocks to report earnings.
Looking ahead to tomorrow and next week, there is a plethora of economic data being released, including (Friday) the Employment Cost Index, Personal Income & Spending, and Consumer Sentiment; as well as all major inflation readings and manufacturing data reports next week.
Disclosures: This market commentary is written by the 1879 Advisors Investment Committee and represents the views of 1879 Advisors. This commentary is not investment advice and should not be used as a basis to make investment decisions. Please consult with your registered investment advisor before making any investment decisions.