4/13/20 Market Notes
Stocks had their best week since 1974, as the S&P 500 had risen 12.1% and thereby recouping about 1/4 of the losses the large cap index suffered since its March 23rd peak. With the exception of the energy sector, which only registered a small gain last week, all other sectors of the S&P rallied sharply. The energy sector was plagued by exceptional volatility in oil markets, which whipsawed the commodity with daily double digit percent move as Saudi Arabia and Russia attempted to find a truth and cut production. Over the weekend OPEC announced a historic 9.7 minion barrels per day production cut, but the move seemed to not impress traders as oil prices are only up slightly after the announcement. Investors should be prepared for more market volatility this week, as a slew of earnings will be reported and economic data releases will provide more insights into March and April data. Of course the ultimate driver of market sentiment will be coronavirus related data. There is some reason for optimism here, as social distancing measures are having their desired effect. None-the-less, experts warn that rough times are still ahead and that the peak daily death toll is still some weeks away for many parts of the country. This week's key economic data releases include:
Tuesday: March Import Price Index
Wednesday: March Retail Sales, April Homebuilders Index and Empire State Index
Thursday: Philly Fed Manufacturing Index
Disclosures: This market commentary is written by the 1879 Advisors® 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.