Weekly Expert Market Perspectives Park Avenue Securities PAS

Fresh Records Set During Thanksgiving Week

The major averages ended the Thanksgiving week with solid gains across the board. The strong showing lifted the Dow, Nasdaq, and S&P 500 to fresh record highs while the Russell 2000 climbed to its best level since October 2018.

Trade-related headlines continued pouring in during the early portion of the week, but once again, they did not introduce anything material into the discussion. More notably, President Trump signed the Hong Kong Human Rights and Democracy Act on Wednesday evening, prompting some angry statements, but nothing more concrete, from Chinese officials.

Global economic data continued painting a gloomy picture, as China's industrial profits decreased at the sharpest rate in eight years in October while South Korea (actual -1.7% m/m; expected 0.1%) and Japan (actual -4.2% m/m; expected -2.1%) reported falling industrial production in October.

Ten out of eleven sectors ended the week with gains, and five out of ten gained 1.0% or more. The consumer discretionary sector was the top performer, rising 1.8%. The group finished in the lead even though Telsey Advisory Group cautioned that store traffic on Thursday and Friday was likely down a touch when compared to last year.

The energy sector (-1.6%) was the only notable decliner of the week as the price of crude oil slid back below its 50-day moving average.

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Past performance is not a guarantee of future results. Indices are unmanaged and one cannot invest directly in an index. Diversification does not guarantee investment returns and does not eliminate the risk of loss.

Data and rates used were indicative of market conditions as of the date shown and compiled by Briefing.com. Opinions, estimates, forecasts, and statements of financial market trends are based on current market conditions and are subject to change without notice. References to specific securities, asset classes and financial markets are for illustrative purposes only and do not constitute a solicitation, offer, or recommendation to purchase or sell a security. S&P 500 Index is a market index generally considered representative of the stock market as a whole. The index focuses on the large-cap segment of the U.S. equities market. Each company’s security affects the index in proportion to its market value. NASDAQ Composite Index is a market value-weighted index that measures all NASDAQ domestic and non-U.S. based common stocks listed on the NASDAQ stock market. Dow Jones Industrial Average is a widely used indicator of the overall condition of the stock market, a price-weighted average of 30 actively traded blue chip stocks, primarily industrials, but also includes financial, leisure and other service-oriented firms. Russell 2000 Index measures the performance of the smallest 2,000 companies in the Russell 3000 Index of the 3,000 largest U.S. companies in terms of market capitalization. MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.

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2019-90491 (Exp 2/20)