Stocks Mixed on Economic Data and UNH; Bonds Advance

Good morning,

The Dow (-0.6%), NASDAQ (+3.3%) and S&P 500 (+1.0%) exhibited mixed results for the week.  Meanwhile, taxable bonds gained 0.5% and tax-free municipal bonds gained 0.3%.  The 10-year Treasury yield fell 0.02% to finish the week at 4.15%.

Economic data was mixed last week, as manufacturing showed signs of expansion in November, but the services sector slowed slightly.  The November jobs report was strong, but may be a bounce back from the prior month that was impacted by hurricanes and the Boeing strike.  Otherwise, the economic data was generally strong last week, but not too strong to deter the Fed from lowering interest rates at its meeting next week.  The reason for the loss on the Dow was due to United Health Group (UNH) stock falling 10% following the assassination of its CEO.  UNH is the largest component of the Dow, and single-handedly caused the Dow to fall into negative territory for the week.

In reality, economic data has been masked by the election results and a new administration about to enter Washington.  It is widely expected that there will be sweeping changes involving a wide range of policies (immigration, tariffs, taxes, energy / drilling, etc.).  Unfortunately, most investors and economists are unclear as to whether or not these policies will be inflationary and/or create more economic growth.  We can all analyze it and see both sides, so the truth is in the pudding, they say.  In other words, time will tell.

For those of you who are Penn State football fans, or football fans in general, I am thrilled to be interviewing former college star and prop football player, Mike Guman.  Mike played for Penn State in the late 1970’s, and then for the Los Angeles Rams in the 1980’s.  This interview will appear in video and audio podcasts for the next few weeks, as I will be filming multiple episodes regarding his college and pro football career, as well as Mike’s view on the many changes to the sports over the decades.  These videos can be found on our website, social media outlets such as Facebook, LinkedIn, and Google, and podcast hosting sites such as Spotify and iTunes.  These full-length videos are also contained on my YouTube channel called, “Financial Planning: Explained”.

Have a great day and terrific week!

^{Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.}

^{The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.}