Weekly Market Commentary

A weekly market review for the week ending November 13, 2020

Stocks

Stocks continued their rally last week following the optimism surrounding a vaccine for COVID-19. Pfizer announced preliminary data which stated an over 90% effective rate for its vaccine. The company stated they could begin to roll out the vaccine before year-end. All major indexes briefly touched all-time intraday highs on Monday but trailed off as the week went on before bouncing back on Friday. The Russell 2000 performed the best last week, returning 6.07%. Conversely, technology lagged which has been the usual leader so far this year. As a result of the positive vaccine news, cyclical shares rose sharply. The leaders were travel and leisure stocks such as Carnival Cruise Line, Marriott, and American Airlines. However, cases and hospitalizations continue to rise around the country. Chicago and New York both issued stay-at-home orders as daily new cases continue to reach records highs. While the vaccine news provided a boost to the market, investors seem to continue to closely monitor the pandemic. For the year, the Russell 2000 and S&P 500 returned 4.53% and 10.97%, respectively.

Bonds

With the rally in stocks, the yield on the 10-year U.S. Treasury ended higher for the week. The news from Pfizer early in the week sent long-term yields to their highest levels since March. Nevertheless, yields decreased Thursday on the fear of new restrictions/lockdowns. The municipal bond market outpaced U.S. Treasures for the week. Investment-grade corporate bond spreads tightened on Monday but widened out as the week went on amid concerns over the state of the pandemic. This concern over the state of the pandemic also weighed on sentiment in the high yield bond market. For the year, U.S. Treasuries and Investment Grade Corporate Bonds returned 7.80% and 7.71%, respectively.

Index Performance Ending November 13, 2020

Weekly-Market-Commentary-11-17-2020

This material has been prepared by Investment Consulting Services and is not to be relied on as a forecast, research, or investment advice.  The material is intended for informational purposes only.  The opinions expressed are as of November 17, 2020 and are not guaranteed to be accurate.  No warranty of accuracy or reliability is given and no responsibility for errors and omissions is accepted by Investment Consulting Services, LLC., its officers, or its employees.  Data has been obtained from sources considered to be reliable, but its accuracy and completeness cannot be assured and is subject to change without notice.  Past performance is not a guarantee of future results.

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