Tech stocks rebounded this week, but for S&P 500 and Dow Jones, it was the fourth consecutive week with losses. Small-cap stocks underperformed. The main financial and business theme now seems to be a continuing, but at the same slowing economic recovery for the US economy. The VIX volatility index seems to have been stabilized in arrange as of mid-summer but with major developments ahead such as the US presidential elections and news about the prospects of a coronavirus vaccine being released, and coronavirus cases can certainly add volatility in the stock market until the end of 2020. Another interesting factor to monitor is possibly the fact that monetary policy cannot add much to stimulate the economy, and the burden will be on fiscal policy for that. And with a prospect that any further fiscal stimulus is both uncertain in time and in scale, this could prove a negative factor for further major stock indices gains, without a clear catalyst, which now is absent.

Economic News

The Markit Manufacturing PMI Flash came in at 53.5 beating the forecast of 53.1 showing expansion and strong economic activity in the manufacturing sector. Last week the comment about the housing market was that it continues to show strength. While the Existing Home Sales MoM came in at 2.4%, the same as per forecast New Home Sales came in at 4.8%, beating the forecast of 0.1%.Our comment about the labor market last week is still relevant, as there is still a slowing recovery, with both Continuing Jobless Claims and Initial Jobless Claims figures being released coming at worse than expected.

For the week of September 21– September 25, 2020, the major US stock market indexes closed as follows on Friday, September 25:

• Dow Jones Industrial Average: Close 27173.96, -1.75% for the week, -4.78% Year-to-date

• S&P 500 Index: Close 3298.46 , -0.63% for the week, +2.09% Year-to-date

• Nasdaq Composite: Close 10913.56, +1.11% for the week, +21.63%, Year-to-date

• Russell 2000: Close 1474.91, -4.03% for the week, -11.60% Year-to-date

Weekly Stock Gainers

These are the top three gainers, stocks with five days of consecutive price advances:

1. New Home CO Llc (NYSE:NWHM), Close 4.72, 5-day change +21.34%

2. Opera Ltd ADR (Nasdaq:OPRA), Close 9.62, 5-day change +10.07%

3. H&R Block (NYSE:HRB), Close 15.29, 5-day change +10.00%

Weekly Stock Losers

These are the top three losers, stocks with 5 days of consecutive price declines:

1. Ashford Hospitality TR Inc (NYSE:AHT-PI), Close 3.20, 5-day change -37.25%

2. Rayonier Advanced Materials Inc (NYSE:RYAM), Close 3.25, 5-day change -29.96%

3. Fts International Inc (NYSE ARCA:FTSI), Close 3.24, 5-day change -29.10%

Economic events for the week September 28- October 2:

Important economic data for the week will be the Goods Trade Balance, the CB Consumer Confidence, the weekly Jobless Claims, the GDP Growth Rate QoQ Final, the Core PCE Price Index, the Markit Manufacturing PMI Final, Non-farm Payrolls, the Unemployment Rate, and the Michigan Consumer Sentiment Final.

Sources:

https://www.wsj.com/market-data/stocks/us/indexes

https://www.barchart.com

https://www.fxstreet.com/economic-calendar