Our weekly recap of what is happening in the markets so you know where and how to invest to best grow your wealth.
Market Recap week of February 24th.

Nav.ing the Market: Week of Jan 24

Good signs all around. The US stock market hit higher record highs last week, keeping investor-confidence high and projecting a strong outlook on 2020. 

While 2019 wasn’t the best for China (actually the worst in 30 years), their last quarter ended on a quasi-high note, instilling some global confidence in their lagging markets. 

Oh, and the International Monetary Fund lowered its confidence in global economic growth. 

Here’s this week’s breakdown: 

Energy 

Fears that China’s coronavirus will be a repeat of the 2002-2003 SARS epidemic is pressuring oil and industrial metal prices this week in anticipation of weaker demand. Good news here? While SARS impacted the way we all think twice about touching an escalator railing, the tragic disease’s impact on the global markets were short-lived. 

Materials 

….continuing on from the Energy update… Copper’s maybe the biggest contender to fall if the virus spreads as China accounts for about half of global demand for copper. Stay tuned as we await infection rates to either rise or taper. 

And… a Chinese company called Vital Materials Co. has just purchased a serious stockpile of various metals that experts say are indispensable to the electronics industry. At $600 million, the company’s now the proud owner of metals the U.S. considers “critical” to reduce our own foreign dependence. 

Industrials

It’s another week of airline ups and downs and companies try to shake the effects of Boeing’s 737 drama. Who’s winning? American Airlines posted higher than expected profits on Thursday. Meanwhile, Southwest’s 4th quarter earnings fell 21 percent as they are the largest buyers of the 737 Max. Yikes.  

Consumer Discretionary (Cons Disc)

Nike’s starting out strong this year. Want to see how it’s primed to perform? Check out this latest article.

JP Morgan and United are doubling down on their credit card rewards to consumers in an effort to outpace the competition. You’ll now receive bonuses just for signing up. 

Disney’s coming in hot and analysts are focused on their rampant growth as they seek to compete with other streaming giants. 

Consumer Staples (Cons Stpl) 

It’s all about the fizz this week. While the market saw the UK’s Fevertree stock price drop this week, America’s sweetheart, Coca Cola shows signs of ‘robust’ spending as we roll into this new decade. 

And Anheuser- Busch’s CEO is all about that hard seltzer life as U.S. consumption of beer fell by 2.3 percent. 

Health Care

Vaccine stocks rise quickly amidst the coronavirus outbreak updates this week. Top contenders to find a cure? Investors are looking to Novavax Inc. (NVAX) who was responsible for a MERS vaccine in 2013. Moderna Inc.(MRNA) also got some love after announcing it will work with the Coalition for Epidemic Preparedness to develop a vaccine to treat new illnesses. And NanoViricides (NNVC) quickly rallied, then flattened after issuing shares that weren’t yet active. 

Want to learn more about the virus’s effects on the markets this week? MarketWatch sums it up pretty well here

This week super-giant Johnson & Johnson reported they ‘missed’ revenue estimates. They claim to be feeling the heat from off-patent treatments that could limit their continued growth. While health care stocks like J&J are often a ‘safer’ bet in unstable times, this particular brand is facing some serious legal issues. 

Financials 

The biggest money minds landed in Davos, Switzerland this week for the World Economic Forum. What’s top of mind? Sustainability. Yes, even those money men are focused on rising tides. 

Goldman’s CEO says they won’t invest in new companies without at least one “diverse” board member. 

Technology 

Netflix is flexing their streaming muscles amidst higher-than-expected results. 

Meanwhile, have you seen the new Tesla Cybertruck? Thanks to the release, the stock grew 8 percent, making the company’s market cap hit $100 billion for the first time. If the market cap stays at $100 billion, Elon Musk is poised to make $346 million in stock options. 

WeWork is selling its stake in The Wing as it scrambles to stay afloat. 

And Morgan Stanley gives Micron a boost , saying it expects stronger demand for money chips in 2020. 

Telecom Services 

Ericsson’s CEO claims they’re the frontrunners on the battle of 5G domination. Yes, this is in response to the Huawei debacle and whether Europe can build a strong 5G network without Huawei taking the lead. 

Apple was in the news this week as the company abandoned plans to let their phone users fully encrypt backups onto Apple’s iCloud services. This was in response to the FBI’s concerns that the move would harm current investigations. While this actually happened two years ago, the world was told about it this week. Why the ‘leak’? Well, Apple’s been in the hot zone as Trump claims they refused to support investigations into the shooting at a Pensacola naval base last month.  

Real Estate 

The National Association of Realtors reported U.S. home sales hit a two-year high as supply is at a record low on Wednesday. This housing high could soften some of the economy’s woes this week amidst U.S.-China trade tensions and Boeing’s 737 never-ending blows. 

Wanna be ready for the boom? Here are some stocks analysts are focused on: PulteGroup (PHM), iShares U.S. Home Construction ETF (ITB), and home improvement staples like KB Home, Home Depot, and Lowe’s. 

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