Business
The Major Markets saw the gains bleed away last week after three consecutive positive weeks in the domestic market. The greatest losses appeared in the Technology centric Nasdaq. This was especially apparent at the sector level as the Information Technology Sector fell 2.2% This broke a four-week run after September’s pullback. Optimism faded last week as neither the White House nor Congress could come to an agreement on another Stimulus Deal. Ironically, the gains after Monday’s initial drop were fueled at least in part in the hopes that Nancy Pelosi and Steven Mnuchin had narrowed their differences on a new bill. However, political anxiety ramped up as Joe Biden’s son and Amy Coney Barrett’s supreme court nomination fueled an already tense week. Thursday’s presidential debate then served as the exclamation point to these events. As tensions flared, the longer-term end of the yield curve rose. By Friday’s close, the ten-year treasury climbed 9 basis points while the 30-year rose 12 basis points. The gains in interest rates supported financials which was one of the four segments of the S&P 500 which managed to close higher for the week by Friday. Yet the greatest gains were seen in the Communication Services Sector. The S&P 500 Communication Services sector is the newest and one of the smallest segments based upon the number of companies of the Blue-Chip index. Launched only two years ago in September 2018, the sector was created to address the changing landscape of technology and telecommunications Last week, Snap, one of the 26 constituents in the Communication Services sector, beat their earnings forecast when their report broke causing the company to surge 52% in just a week, dragging the overall sector higher. This week, earnings season continues, hopefully serving as a productive distraction from the political horrors you may be feeling ahead of Election Day.