NFL fans, Brexit, COVID Vaccine: O2 Wealth Economic Update, Sept. 11, 2020

U.S. and World News

  • iStock-1227588054_370The NFL regular season kicked off last night, with the defending Super Bowl Champion Kansas City Chiefs beating the Houston Texans 34-20. About 17,000 fans attended the kickoff of the 2020 season at Arrowhead Stadium, which is one of only two venues that will be allowing any fans at all this week. The Jacksonville Jaguars will also be allowing some fans a chance to watch the opener live on Sunday, limiting capacity at 25%.
  • The EU and the U.K. are holding emergency talks after the latter published its Internal Market Bill, which would undercut parts of the Withdrawal Agreement agreed to in January. The news could also damage trade talks as both sides work to secure a new deal. Without an agreement, nearly $1T in trade could be thrown into chaos at the beginning of the year, but some say it may be part of the negotiating strategy. Adding to the turmoil, U.S. House Speaker Nancy Pelosi said any potential U.S.-U.K. trade deal would not pass Congress if Britain undermines the Good Friday peace agreement.
  • On Tuesday, drug maker Astrozeneca paused clinical trials of its experimental COVID-19 vaccine, with a participant in a U.K. study experiencing an unexplained illness. British health minister Matt Hancock explained that the procedure is “not necessarily” a setback and it “depends on what they find when they do the investigation.” AstraZeneca confirmed that the pause “is a routine action” and it was trying to expedite the review to “minimize any potential impact on the trial timeline.”

Markets

  • Markets stumbled this week. The S&P 500 fell -2.49% and closed at 3,340. The Dow Jones dropped -1.61% and closed at 27,665. Year-to-date, the S&P 500 is up 4.67% and the Dow Jones is down -1.35%.
  • Interests rates fell this week. The 5 year and 10 year U.S. Treasury Notes are yielding 0.25% and 0.67%, respectively.
  • The spot price of WTI Crude oil fell this week. Prices dropped -5.7% and closed at $37.50 per barrel. Year to date, Oil prices are down -38.6%.
  • The spot price of Gold rose 0.52% and closed at $1,933.56 per ounce. Year to date, Gold prices are up 28.0%.

Economic Data

  • The core consumer price index (CPI) rose 0.39% in August, well above consensus expectations for a two-tenths rise.
  • Wholesale inventories decreased by 0.3% in the final July report, below consensus expectations and the previously-reported 0.1% decline
  • The producer price index (PPI) increased by 0.3% in August, one tenth above consensus expectations.
  • Initial jobless claims were unchanged from an upwardly-revised level and above consensus expectations at 884k in the week ended September 5
  • The ISM non-manufacturing index fell by 1.2 points to 56.9 versus expectations for a reading of 57.0

Fact of the Week

  • Of the 130 FBS college football teams, 76 are playing a fall 2020 season while 54 are not currently scheduled to play at all. In 2019, college football generated over $4 billion in revenue. (Source: NCAA, ESPN)

Rich Gartelmann CFP® – (630) 844-5730 rgartelmann@oldsecond.com
Steve Meves CFA® – (630) 801-2217 smeves@oldsecond.com
Brad Johnson CFA®, CFP® – (630) 906-5545 bjohnson@oldsecond.com
Jacqueline Runnberg CFP® – (630) 966-2462 jrunnberg@oldsecond.com
Ed Gorenz – (630) 906-5467 ejgorenz@oldsecond.com
Mike Demski – (630) 966-2430 mdemski@oldsecond.com
Mike Cava CFA®, CFP® – (630) 281-4522 mcava@oldsecond.com

Visit Old Second Wealth Management

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