US Stock Markets Ended Oct. 9, 2020

 
The S&P 500 Index returned 3.89% last week, its best performance since the shortened holiday week ending July 2. October has shown a welcoming start for equity investors following a disappointing September. After recording an all-time closing high on September 2, the index slid over a three-week period posting a -3.80% return for the month, its first negative monthly performance since March. Equities opened up on Monday on news that President Trump was recovering from coronavirus symptoms and could be leaving the Walter Reed hospital later that evening. The positive trend was reversed Tuesday afternoon when President Trump tweeted he was stopping stimulus negotiations until after the election causing the index to decline over 2.00% in the last 75 minutes of trading. Stocks were headed back up on Wednesday on hopes that some stimulus could still occur as President Trump encouraged lawmakers to provide immediate approval of $25 billion for the airline industry, aid for small businesses, and $1,200 stimulus checks for jobless Americans, in contrast to the large comprehensive aid package of $2.2 trillion proposed by Speaker Nancy Pelosi. All sectors were positive last week with the top sectors being materials and energy which was helped by the rise in oil prices due to Hurricane Delta. Crude oil closed at $40.60 per barrel on Friday, climbing 9.58% for the week. Top energy names included Cabot Oil & Gas Corp, Halliburton Company, TechnipFMC PLC, and Occidental Petroleum Corp, and top materials names included Corteva Inc., Martin Marietta Materials Inc., LyondellBasel Industries NV, and PPG Industries Inc. Information technology company Xilinx Inc. posted the best performance in the index last week, returning 17.89%. The stock jumped Friday on news that Advanced Micro Devices Inc., also known as AMD, is in talks to acquire the smaller semiconductor company. Domino's Pizza Inc. posted the worst performance in the index last week, returning -9.87%. The stock dropped on Thursday after missing earnings estimates. Earnings announcements expected this week include Johnson & Johnson, UnitedHealth Group Inc., JPMorgan Chase & Company, Bank of America Corp, Honeywell International Inc., Wells Fargo & Company, and many others.
Posted on Monday, October 12, 2020 @ 8:16 AM

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.