Welcome to the Weekly Market Summary:
Recently we’ve launched the Mid Atlantic Weekly Market Summary to provide our clients with a quick review of the market across Equities, Fixed Income and Macroeconomic Data. Our goal is to gather the critical data points from the markets as we kick off another week and to keep it as brief as possible. We hope having these insights top of mind will help you navigate the week ahead.
Market Data as of Week Ending 04/24/2020 unless noted otherwise.
Stock prices generally declined for the week as investors consider the impact of continued weakness in near term demand for many goods and services. The price of oil was an area under considerable pressure, as the price of West Texas Intermediate crude oil slumped to historic levels. Small and medium sized businesses outperformed their larger counterparts which may indicate early signs of investor optimism toward the recovery. Developed foreign stocks in Europe and Asia also declined for the week and Emerging Market stocks lagged developed foreign markets.
U.S. Treasury yields narrowly decreased as demand in the treasury market remains high across a diverse group of investors. Below investment grade corporate bonds declined last week despite strong demand for new issuance. Investment grade corporate bonds are yielding just under 3% and high yield corporate bonds are yielding more than 8%.
Jobless claims rose 4.4 million last week, bringing the total to more than 25 million Americans who have filed initial claims for unemployment insurance since the COVID-19 crisis began. Other U.S. economic data such as existing home sales, manufacturing, services, and durable goods orders recorded significant declines for the month of March. On a positive note, the House of Representatives overwhelmingly passed a $484 billion spending bill to provide additional loans to small businesses and funding for coronavirus testing and hospitals.