Equity Markets Trade Higher Throughout a Quiet Week

Market Recap Week ending 8/14/2020

It was a fairly quiet week in the markets; nevertheless, US equity markets were able to trade higher.  The S&P 500 gained 0.6%, the Dow led with a 1.8% increase, the NASDAQ inched higher by 0.1%, and the Russell added 0.6%.  The yield curve, which has been stable over the last month, steepened on a decent amount of supply coming to auction.  The 2-year note yield was unchanged at 0.13% while the 10-year yield increased by 15 basis points to close at 0.71%.  Gold prices fell nearly 4% on the week to close at 1949.90 an Oz.  Oil increased 2.1% or $.88, closing at $42.05 a barrel

There was no progress in Washington related to a stimulus package.  The administration and Democrats continue to be far apart on terms.  The Democrats did reduce their plan by a trillion dollars, but it was still a no go for Trump.   Congress has gone into recess and is not expected to return until after Labor Day.  

Economic news was a bit better than expected for the week.  Initial claims fell below 1 million for the first time since March.  The report showed claims falling by 228k to 963k.  Continuing claims fell to 15.486 million from the prior week's reading of 16.09 million.  Retail sales came in slightly below consensus but posted an increase of 1.2%.  Preliminary August University of Michigan consumer sentiment held steady at 72.8 just ahead of July's final reading of 72.5.