The Markets (as of market close September 4, 2020)
For the week, early gains in stocks weren’t enough to overcome losses later, as all of the major stock indexes lost value. The Nasdaq fell 3.3%, followed by the Russell 2000 (-2.7%), the S&P 500 (-2.1%), the Dow (-1.8%), and the Global Dow (-1.8%). Even favorable employment data wasn’t enough to halt the selloff. An additional 1.4 million new jobs were added in August, and the latest unemployment figures showed the total number of claimants dipped below 1 million.
Last Week’s Economic News
- There were 1.4 million new jobs added in August, and the unemployment rate fell 1.8 percentage points.
- Manufacturing continues to recover from the slowdown brought about by the COVID-19 pandemic. According to the August Manufacturing ISM® Report On Business®, manufacturing expanded for the fourth consecutive month.
- The services sector grew in August, according to the latest Services ISM® Report On Business®.
- The trade deficit increased in July, according to the latest report from the Bureau of Economic Analysis.
Eye on the Week Ahead
Economic reports during the Labor Day week focus on inflation, which has been muted at best. Both the Producer Price Index and the Consumer Price Index for August are out this week.
Have a nice week!
Sincerely,
Robert G. Carpenter
President & CEO
Baltimore-Washington Financial Advisors