Major domestic stock show volatile trading
• Tech-heavy Nasdaq fared worst down 10% from all time high Sept 2.
• Energy shares still weak as crude oil prices fall below $40 per barrel due to Saudi Arabia cutting oil prices
Inflation data surprised on the upside
with both core and headline consumer prices rising 0.4% from July.
- Used Car prices largest gains in 5 decades as American shunned public transportation.
- J Crew Group – one of the first retailers to file bankruptcy due to the pandemic – emerged from bankruptcy after completing it’s restructure plan.
Longer-term U.S. Treasury yields decreased
on growing COVID 19 concerns. It briefly slid to levels last seen in late April, aided by strong auction demand for 10-year U.S. Treasury notes & 30-year U.S. Treasury bonds.
European stocks rise on continued economic recovery, shaking off disappointment the ECB didn’t announce additional stimulus. Pan-European STOXX Europe 600 up 1.6%; Germany’s DAX rose 2.80%; France’s CAC 40 rose 1.39%; Italy’s FTSE MIB 2.21%; and UK’s FTSE 100 up 4.02%.
Chinese A shares down 3%.
Fueled by news the Trump Administration was considering adding SMIC, China’s top chip foundry, to a list of U.S. sanctioned companies dealt a blow to sentiment.
Japan, stocks showed modest gains from previous week.
1.4 million US jobs added in August and the unemployment rate fell to 8.4 %
— below 10 percent for the first time since the pandemic hit.
Morning Consult economist John Leer says the U.S. workforce is splitting into two groups:
- Those with a job, who are more and more confident they’ll keep it
- Those who have been furloughed or fired are increasingly worried they'll get locked out of the labor force altogether.
Overall consumer spending remained 4.6 percent below pre-pandemic level.
The hidden cost of remote school:
Parents quitting work to stay home with their children, a potential blow to the economy that could be big enough to rival a small or medium-size recession.
Retirement How long will I live? Investors frequently underestimate the number of years they will likely live and may fail to plan accordingly, states a new study from Morningstar.
A number of variables such as gender, income, household health, and smoking factor into longevity, the study finds even those who feel they’ll be around for 20 or 30 years after retirement may be underestimating their longevity — and not funding their golden years appropriately. Individuals would benefit by adding an extra five years
to expected lifespan, while couples — who must consider that one partner will almost surely survive the other — should plan for an extra eight years.
Source: "The Madison Weekly Market Wrap", September 6, 2020, volume 7, issue 36.
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