Winthrop Partners Economic Update 11-30-2020

The Markets (as of market close November 27, 2020)
Last Monday saw stocks advance following encouraging news in the development of yet another COVID-19 vaccine. The Russell 2000 climbed nearly 2.0%, followed by the Dow, the Global Dow, the S&P 500, and the Nasdaq. Treasury yields and crude oil prices surged, while the dollar was mixed. Among the market sectors, energy jumped higher, followed by industrials, financials, materials, and consumer discretionary. Health care, information technology, and real estate fell.
Cyclical stocks led the surge last Tuesday as the market pushed ahead for the second consecutive day. The Dow eclipsed 30,000 for the first time, and the S&P 500 hit a record. Among sectors, energy and financials soared, followed by materials, communication services, and industrials. Crude oil prices and Treasury yields climbed, while the dollar sank.
Cyclical and value stocks have been favored over mega-caps and tech stocks this month. Yet last Wednesday saw a reversal of that trend, but not enough to overcome a pre-holiday sell off. Of the indexes listed here, only the Nasdaq (0.5%) advanced. The Global Dow was essentially unchanged from the prior day, while the Dow (-0.6%), the Russell 2000 (-0.5%), and the S&P 500 (-0.2%) lost value. Crude oil prices continued to climb, while the dollar declined. Treasury yields were mixed.
Stocks continued to push higher the day after Thanksgiving. The Nasdaq added nearly 1.0%, followed by the Russell 2000, the Global Dow, the S&P 500, and the Dow. The yield on 10-year Treasuries fell, along with the dollar and crude oil prices. Among the major market sectors, health care, communication services, and technology gained, while energy and utilities fell.
Optimism over favorable vaccine reports provided encouragement for investors over the holiday-shortened week. Several of the benchmark indexes hit record highs last week, continuing an upward trend in the market. The Russell 2000 and the Global Dow added the most value by the end of the week, followed by the Nasdaq, the S&P 500, and the Dow. Each of the indexes listed here are now well above their 2019 year-end values, with the Nasdaq nearly 40.0% higher.
Crude oil prices continued to climb, closing at $45.53 per barrel by late Friday afternoon, up from the prior week’s price of $42.17 per barrel. The price of gold (COMEX) continued to slide last week, closing at $1,781.90, down from the prior week’s price of $1,869.40. The national average retail price for regular gasoline was $2.102 per gallon on November 23, $0.009 lower than the prior week’s price and $0.477 less than a year ago. click here for commarket-flash 11-30-2020plete version