U.S. Manufacturing Growth Slows, Trends in the S&P 500, and the Fed Slows Asset Purchases
September 16, 2020 | FIRESIDE CHARTS
Though manufacturing activity remains strong in New York, national growth fell below expectations last month as momentum slows in the face of natural disasters and the ongoing battle against the coronavirus. And while the big have certainly gotten bigger in the S&P 500® Index, do the new follow the same pattern? Finally, after a historic wave of asset purchases that effectively stabilized yields, the Fed is easing off the gas pedal. Will Chairman Powell reveal any significant new insights when he speaks this afternoon?
1. U.S. manufacturing slowed last month. Covid, fires, hurricanes…it is almost apocalyptic!
Source: The Daily Shot. from 9/16/20
2. The NY Fed’s regional survey saw strong activity and easily exceeded expectations.
Source: The Daily Shot, 9/16/20
3. A 25-year look back into the size of the 3 and 5 largest companies in the S&P 500. We note a tripling in the last seven years…
Source: The Daily Shot, from 9/15/20
Source: The Daily Shot, 9/16/20
5. Interesting…
Source: FactSet, BofA US Equity and Quant Strategy, from 9/16/20
6. The Fed told us they were going to keep rates low…and apparently stable… .
Source: The Daily Shot, from 9/16/20
7. So now we know who the large marginal buyer of TIPS is…
Source: Pervalle Global, Bloomberg, from 9/15/20
8. So far, the Fed and other central banks have done what is necessary to stabilize markets and put enough stimulus in place to put the economy on a path to recovery. But with the second CARES Act stalled in congress, what is next?
Source: The Daily Shot, from 9/15/20
9. U.S. governmental institutions, including the Fed, own ~$10 trillion in U.S. debt.
Source: U.S. Treasury, Bloomberg Calculation, from 9/15/20
10. China’s industries have returned to pre-Covid levels…
Source: The Daily Shot, from 9/15/20
11. While the U.S. is fighting back the second wave of Covid, Europe is in the thick of their second wave. Globally, we still have ~250,000 new cases/day.
Source: The Daily Shot, from 9/15/20
Disclosure: The charts and infographics contained in this blog are typically based on data obtained from 3rd parties and are believed to be accurate. The commentary included is the opinion of the author and subject to change at any time. Any reference to specific securities or investments are for illustrative purposes only and are not intended as investment advice nor are they a recommendation to take any action. Individual securities mentioned may be held in client accounts. Past performance is no guarantee of future results.