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 30

Launched by popular demand, we’re bringing you a quick recap of key moves in the market this week. We’ll break it down by sector because your portfolio likely looks the same. Here’s a guide to the market if you’re shy about your sector knowledge (that’s the whole world, by the way).

Each week, we’ll report key updates to 11 sectors, citing big changes, new IPOs, important company or industry updates.

Here’s this week’s breakdown: 

Energy 

As anticipated, the coronavirus hit oil futures, which are now trading at a three-month low. As the disease spreads, fears rise of what continued quarantine will do to global markets. 

Meanwhile, GE is loving that ‘lean’ life. Their new CEO just capped his first year at the company and the stock rose 10.3 percent — their highest close since 10/9/18– and their trading volume rose to 220.8 million shares (from the daily average of about 55.8 million), making GE the most actively traded stock in U.S. markets. CEO Larry Culp is thanking his ‘lean transformation.’

And UPS hits back at Amazon by investing in their own energy-efficient vans

Materials 

Did you know the Democratic Republic of Congo holds a majority of the world’s cobalt? Neither did we. The government’s attempting to form a “state monopoly,” which would allow them more control over the price of cobalt– the key ingredient in all rechargeable batteries. 

Reuters just reported that nickel and copper are projected to lead the pack in this sector for the foreseeable future, thanks to supply deficits like Indonesia’s export ban of nickel ore. 

Industrials

Another bad headliner week for Boeing as the American Airlines’ pilots union disagrees with the CEO’s claims that pilots are A-OK with the currently grounded 737. 

Who’s not hit by coronavirus? Companies like the industrial giant, Dow. Their CEO reports an increase in demand for their products that are used in many household cleaning items. As more turn away from dining out and more frequent cleaning protocols, those like Dow are seeing an uptick. 

Consumer Discretionary (Cons Disc)

GM hits headlines this week as it’s bringing back the Hummer. Yep- that big yellow tanker better known for its gas-guzzling days. What’s the value opp here? It’s coming back as an all-electric “super truck.”Coming to a town near you…

PSA- don’t get on that cruise during a global infection outbreak. 6,000 tourists are stuck on an Italian cruise, Costa Cruises, over fears of infection. 

Consumer Staples (Cons Stpl) 

Coca Cola is coming in hot. The stock rose this week as earnings met their estimates and the brand’s unique positions with products like Coke Zero, and their smaller can packages are holding the company ahead of the competition. 

McDonald’s also posted a strong fourth quarter. They passed over $100 billion in sales. And delivery drove over $4 billion dollars in global sales. Their push towards delivery shows the iconic staple is still focused on innovation. 

Health Care

Coronavirus cases just hit 8,200,surpassing the SARS pandemic of 2003-2004. India just confirmed its first case of the virus, and Russia closed its border to China. We’ll continue to keep you posted on how this post affects the global economy and the markets throughout the outbreak. For now, our thoughts are with those affected by this terrible illness. 

Financials 

Private equity giant, Blackstone Group Inc. just raised a record of $134 billion in fundraising as investors look for new opportunities in a low-yield market. 

The U.S. cryptocurrency exchange brand Coinbase has just opened custody operations in Dublin to support their global institutional expansion. Meaning, more high net worth individuals and companies are interested in the alternative currency and need safer ways to store large quantities of these assets. 

Technology 

Apple outperformed competitor Samsung this week for the first time in two years. What supported their growth? iPhone sales grew by 7.7 percent to nearly $56 billion in the last quarter with their CFO citing new payment plan options for the phone as a primary reason for growth.

The courting between Uber and Doordash came to an end. I guess it was just too “complicated.”

Oh, and can you hear Facebook crying? The stock just dove 8 percent as the market opened on Thursday, wiping out more than $50 billion in market value. What’s up here? Well, the social network just reported a 51 percent rise in expenses(!) compared to its 2018 total. Yikes. 

Telecom Services 

Britain gave Huawei a break on Monday as it announced it will let the Chinese telecom giant Huawei help build out its 5G network. The U.S. isn’t so pleased with the move as it puts added pressure on global and national security concerns.  

Real Estate 

A growth-at-all-cost mentality is no longer the singing tune of real estate startups looking for sellouts as WeWork forces groups to focus on profitability in this sector.

Meanwhile, the homebuying industry is seeing dollar signs as the rate of homeownership in the U.S. climbed to the highest its been since 2013. The report sites the share of Americans owning their own homes was 65.1percent, an impressive increase from past years.  

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