Monthly Archives: November 2020
U.S. Stock Prices Advanced as Investors Responded to Another Round of Positive Vaccine Announcements
Market Data as of Week Ending 11/27/2020 unless noted otherwise.
EQUITIES
U.S. stock prices advanced as investors responded to another round of positive vaccine announcements and more hurdles have been cleared for the transition to a new administration in the White House. Small and medium sized company stocks generally outperformed large company peers, while growth stocks lagged value counterparts. Cyclical sectors delivered the strongest gains led by the energy, financials, and materials sectors. Real estate was the only sector to decline for the week, while other defensive sectors such as utilities, consumer staples, and health care also lagged the S&P 500 Index. Developed foreign stocks in Europe and Asia lagged U.S stocks for the first time in several weeks, while Emerging Market stocks underperformed developed foreign markets.
BONDS
U.S. Treasury yields were mixed this past week as shorter term yields declined and longer term yields rose. Despite the news in the prior week that emergency Federal Reserve lending programs will not be renewed, high yield corporate bonds were once again the top performing asset class and government bonds lagged. Investment grade corporate bonds are yielding more than 1.8% and high yield corporate bonds are yielding approximately 4.8%.
MACROECONOMIC DATA
Economic data released during the week was mixed and continues to be overshadowed by coronavirus news. Weekly initial unemployment claims unexpectedly rose again for the second consecutive week to 778,000 and approximately 6.1 million Americans continue to claim ongoing unemployment benefits. Other disappointing reports included a 0.7% decline in the monthly personal income figure and consumer sentiment fell to the lowest level since August. Housing data remains robust as there were nearly 1 million new home sales in October. Coronavirus restrictions remain in place for much of Europe as Germany extended their restrictions through December 20 and Portugal declared a state of emergency for 15 days. European business activity declined as the services sector has suffered from recent coronavirus restrictions.
Data Released During the Week was Mixed and Largely Overshadowed by Coronavirus News
Market Data as of Week Ending 11/20/2020 unless noted otherwise.
EQUITIES
U.S. stock prices were mixed as investors responded to positive vaccine announcements and rising coronavirus cases. Improving company fundamentals are being overshadowed by concerns about the economic recovery. JPMorgan Chase & Co. analysts are forecasting a 1% contraction in economic activity next quarter as several states impose new restrictions. Small and medium sized company stocks generally outperformed large company peers, while growth stocks lagged value counterparts. Cyclical sectors delivered the strongest gains led by the energy, industrials, and materials sectors. Health care was the worst performing sector, followed by defensive sectors such as utilities and consumer staples, which also lagged the S&P 500 Index. Developed foreign stocks in Europe and Asia outperformed U.S stocks while Emerging Market stocks underperformed developed foreign markets.
BONDS
U.S. Treasury yields declined this past week after reaching their highest levels since March in the previous week. Treasury Secretary Steven Mnuchin announced that several emergency Federal Reserve lending programs will not be renewed when they expire at the end of the year. Within intermediate term bonds, high yield corporate bonds were once again the top performing asset class and longer duration bonds generally outperformed shorter duration bonds. Investment grade corporate bonds are yielding more than 1.8% and high yield corporate bonds are yielding nearly 5%.
MACROECONOMIC DATA
Economic data released during the week was mixed and largely overshadowed by coronavirus news. Weekly initial unemployment claims rose for the first time in more than a month to 742,000 and approximately 6.4 million Americans continue to claim ongoing unemployment benefits. Monthly data for retail sales and industrial production rose, but both reports indicated concerns going forward. Housing data remains robust as new housing starts rose 5% and existing home sales rose 4%. European leaders are considering whether to extend lockdowns and restrictions as coronavirus infection rates have declined.
Major Economic Sectors were Positive with the Most Notable Gains in the Energy and Financial Sectors
Market Data as of Week Ending 11/13/2020 unless noted otherwise.
EQUITIES
U.S. stock prices advanced largely based on positive coronavirus vaccine news and better than expected earnings growth. According to FactSet, 84% of companies have reported beating earnings estimates for the third quarter. If the figure holds, it will tie last quarter as the highest percentage of S&P 500 companies reporting a positive earnings surprise since FactSet began tracking this metric in 2008. Small and medium sized company stocks generally outperformed large company peers, while growth stocks lagged value counterparts. Most major economic sectors were positive with the most notable gains in the energy and financial sectors. Growth oriented sectors such as information technology and health care lagged the S&P 500 Index. Developed foreign stocks in Europe and Asia outperformed U.S stocks while Emerging Market stocks underperformed developed foreign markets.
BONDS
U.S. Treasury yields rose this past week reaching their highest levels since March. High yield corporate bonds were once again the top performing asset class and shorter term bonds generally outperformed longer term bonds. Investment grade corporate bonds are yielding approximately 2% and high yield corporate bonds are yielding more than 5%.
MACROECONOMIC DATA
Economic data released during the week was mixed and largely overshadowed by political uncertainty and coronavirus news. Initial unemployment claims for the week were 709,000 and less than 7 million Americans continue to claim ongoing unemployment benefits. Sentiment data was less positive as the University of Michigan’s preliminary measure of consumer sentiment in November missed expectations and dropped to a three-month low. France, Portugal, and Germany have extended their partial lockdowns in an attempt to slow the spread of coronavirus. Japanese Prime Minister Yoshihide Suga asked his cabinet to provide a proposal for a third stimulus package as Japan attempts to support the economy through a resurgence in coronavirus infections.
EdgeCo Holdings Announces Agreement with Goss Advisors
PITTSBURGH & NEW ORLEANS–(BUSINESS WIRE)– EdgeCo Holdings, L.P. (“EdgeCo”) announced today it has entered into a definitive agreement with GWM Advisors LLC (“Goss Advisors”). Goss Advisors, a leading New Orleans-based RIA supporting independent financial advisors nationwide, will join EdgeCo’s wealth division, which includes the wealth management operations of Mid Atlantic Capital Group, Inc. (“Mid Atlantic”). The transaction is expected to close prior to the end of the year, subject to customary closing conditions.
“We founded this organization to give successful advisors more time, margin, flexibility, and resources so they could grow their practices”
Goss Advisors, honored as a Financial Times Top 300 Financial Adviser four years running, provides a platform for independent advisors to thrive in their individual practices. The firm, founded by industry veterans Jerry Goss, Alex Goss and Neil Turner, serves over 100 independent advisors nationwide with approximately $8 billion in brokerage and advisory assets.
This agreement with Goss Advisors marks the 6th transaction for EdgeCo, a leading provider of technology-enabled solutions for financial intermediaries and their clients. It also greatly expands the firm’s footprint in the wealth management business and its support for independent financial advisors.
“We are pleased to partner with Goss Advisors. They are revolutionizing the industry by delivering a flexible yet robust service offering for the independent advisor market. We’re excited to help them expand the tools, resources, and retirement offerings for their current and future advisors as well as introduce Goss Advisors’ concepts to Mid Atlantic’s existing partner base,” said Timothy Friday, Institutional Services Group CEO of Mid Atlantic.
For Goss Advisors, this agreement reinforces the continuation of its mission. “We founded this organization to give successful advisors more time, margin, flexibility, and resources so they could grow their practices,” remarked Alex Goss, CEO & Founder of Goss Advisors. Mr. Goss continued, “As part of EdgeCo, our access to its industry-leading technology and deep resources will allow us to ramp up our advisor recruiting efforts while enhancing our service levels and value proposition for our existing advisors. We consider our advisors to be family and we couldn’t be more thrilled about what this means for them.”
Executives of Goss Advisors will maintain significant ownership in the newly combined company and will continue to lead Goss Advisors while driving the overall wealth management division to new levels. All employees and offices will be retained as part of the transaction, resulting in continuity for all financial advisor partners of Goss Advisors.
About EdgeCo
Through its subsidiaries, EdgeCo is a leading provider of best-in-class technology-enabled solutions for financial intermediaries and their clients. For over four decades, EdgeCo companies have provided a suite of technology and support services including full-service retirement plan administration, brokerage, advisory, and trust and custody services to a diverse national client base of financial intermediaries. This client base includes registered representatives, investment advisors, and other financial intermediaries including retirement plan recordkeepers, TPAs, bank trust departments, broker dealers, and insurance companies. The firm services approximately $130 billion in client assets under custody or administration and more than 15,000 financial advisors and 500 financial institutions.
About Goss Advisors
New Orleans-based Goss Advisors is a rapidly growing partnership RIA built by financial advisors and collectively shared with other successful advisors and teams. The firm, which embraces a transparent approach to educating advisors on the myths of independence, continues to attract top-performing advisors from across the country. For more information, please visit www.gossadvisors.com.
Media Contact
Marissa Comerford
Marissa@GregoryFCA.com
610-228-2104
U.S. Stock Prices Advanced Despite Election Uncertainty and Rising Coronavirus Cases
Market Data as of Week Ending 11/6/2020 unless noted otherwise.
EQUITIES
U.S. stock prices advanced despite election uncertainty and rising coronavirus cases throughout many parts of the country. Small and medium sized company stocks generally lagged large company peers, while growth stocks outperformed value. All major economic sectors were positive with the most notable gains in the information technology and health care sectors. Energy and defensive sectors such as utilities and real estate lagged the S&P 500 Index. Developed foreign stocks in Europe and Asia narrowly outperformed U.S stocks while Emerging Market stocks underperformed developed foreign markets.
BONDS
U.S. Treasury yields declined this past week as the Fed indicated that it could expand its purchases of long term government bonds. High yield corporate bonds were the top performing asset class and longer term bonds generally outperformed shorter term bonds. Investment grade corporate bonds are yielding approximately 2% and high yield corporate bonds are yielding more than 5%.
MACROECONOMIC DATA
Economic data released during the week was mostly positive and headlined by better than expected employment report. The U.S. reported an increase of 638,000 jobs in October and the unemployment rate declined to 6.9%, beating consensus expectations. Initial unemployment claims for the week were approximately 750,000 and less than 8 million Americans continue to claim ongoing unemployment benefits. Several indicators of economic activity have been trending higher. The Institute for Supply Management said its purchasing managers index (PMI) rose for the sixth consecutive month to 59.3 in October. IHS Markit reported that PMI for the eurozone advanced to 54.8 in October, the highest level in more than two years.
European and Asian Stocks Narrowly Outperformed U.S. Stocks
Market Data as of Week Ending 10/30/2020 unless noted otherwise.
EQUITIES
U.S. stock prices declined as election uncertainty and the coronavirus weighed heavily on sentiment. Small and medium sized company stocks generally lagged large company peers, while value stocks narrowly outperformed growth. All major economic sectors fell with the most notable declines in the information technology, consumer discretionary, and industrials sectors. Defensive sectors such as communication services, utilities and real estate outperformed. Developed foreign stocks in Europe and Asia narrowly outperformed U.S stocks while Emerging Market stocks outperformed developed foreign markets.
BONDS
U.S. Treasury yields were mixed this past week as investors responded to better-than-expected economic data. Long term government bonds were the top performing asset class, whereas high yield corporate bonds declined. Investment grade corporate bonds are yielding approximately 2% and high yield corporate bonds are yielding more than 5.5%.
MACROECONOMIC DATA
Economic data released during the week was mostly positive and headlined by a better than expected third quarter gross domestic product (GDP) report. The U.S. reported an annualized 33.1% increase in third quarter GDP, beating consensus expectations. Initial unemployment claims for the week were 751,000 and less than 8 million Americans continue to claim ongoing unemployment benefits, both of which were new pandemic lows. European countries continue to establish new coronavirus restrictions such as a nationwide lockdown in France with limitations on outdoor movement and mandatory working from home. The Bank of Japan kept interest rates unchanged and lowered its growth outlook. Japan reported its seventh consecutive month of declining retail sales which dropped more than 8% compared to the same month last year.