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Global equities mostly outperformed U.S. equities last week with U.S. equities finishing the week in what could be called a consolidation range. BND, the Vanguard Total Bond Market ETF closed above the 20 day Exponential Moving Average and above the 50 day Simple Moving Average, moving sharply higher on the week.
The Conference Board’s Leading Economic Index unsurprisingly increased in October. It will be interesting to see if the economy can power through November and December to continue its expansion.
The coming week is a heavy economic data release week coupled with a shortened trading day on Thanksgiving Day.
The theme of winners and losers continues. As Black Friday approaches, fresh restrictions are being issued across several states. Many companies have pivoted to online strategies that should help such companies get through this difficult period. Bricks and mortar retailers who do not have well integrated online sales channels may struggle. An example of a company operating well in the mixed space is Best Buy BBY. Best Buy reports earnings on November 24th. If earnings suggest prior quarter strength, such strength could continue into the holiday season for Best Buy.
Recent excess deaths as measured by the CDC appear flat, however, the data lags infection data. RT.live continues to imply that COVID transmission continues to ramp higher across virtually all states.
Link to the CDC data: https://www.cdc.gov/nchs/nvss/vsrr/covid19/excess_deaths.htm#dashboard
Bookmark this COVID-19 site. https://rt.live
– Best
Cory Haupt
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