Hello and welcome to this week’s Jones Financial Blog! Our goal at Jones & Associates is to help keep you up to date with interesting current economic/market happenings as well as some proprietary portfolio happenings. Knowledge is power and thought we would share some of ours with you. Enjoy!
All data is for the week ended January 3, 2020.
US stocks were slightly down for the week. The S&P 500 was down 0.12% and small cap stocks were down 0.42%. International developed stocks were flat for the week while Emerging Market stocks were up 0.48%. (1)
Short term US treasury rates were down 6 basis points for the week, with the 2-year US Treasury ending at 1.53%. Longer term treasury rates also declined, with the 10-year US Treasury falling by 8 basis points to end the week at 1.80%. (1)
Oil prices increased as tensions with the Middle East continued to rise. WTI Crude ended the week at $63.03, up 3% from the end of 2019. Gold prices continue to rise as well, closing at $1,549/oz, up 2.2% from year end 2019. (1)
The US merchandise-trade deficit unexpectedly narrowed for a third month in November as exports increased and imports declined. It is expected that the further narrowing of the trade deficit will help give a boost to growth in the fourth quarter. Exports received a boost from automotive products and consumer goods while imports decreased across industrial supplies and capital goods. (2)
Proprietary portfolio happenings:
G50 and Core Select holdings in defense stocks like Raytheon (RTN) and Lockheed Martin (LMT) increased last week as a result of rising Middle East tensions. Raytheon was up 3.10% for the week while Lockheed increased by 5.12%. (3)
Oil exploration and production stocks had a strong week as rising oil prices lead to higher profitability for these firms. G33 and Core Select holdings like Diamondback (FANG) and Parsley Energy (PE) were up 4.26% and 4.01%, respectively. (3)
Did You Know? Cats kiss with their eyes. They communicate with a slow blink, according to feline experts. With other cats it's a peace sign, meant to put others at ease. Aimed at a human, this seductive blink shows affection, even love. People can return the love with a long gaze and slow blink to "blow a kiss" back in cat body language. The calming blink works on house cats, feral cats, and even tigers in the wild, according to behaviorist Roger Tabor.
Sources: (1) JPMorgan Weekly Market Recap 1-6-2020, (2) Investing.com 12-30-2019, (3) StockCharts.com