THE WEEK ON WALL STREET
Rising bond yields and government shutdown fears left stocks in mostly negative territory for the week. The Dow Jones Industrial Average lost 1.34%, while the S&P 500 slipped 0.74%. The Nasdaq Composite index was flat (+0.06%) for the week. The MSCI EAFE index, which tracks developed overseas stock markets, fell 1.95%.
FACT OF THE WEEK
On September 30, 1947, the New York Yankees beat the Brooklyn Dodgers, 5-3, in Game 1 of the World Series—the first Fall Classic game broadcast on television. It is the second "Subway Series" between and Yankees and Dodgers and first World Series to involve a Black player. Jackie Robinson of the Dodgers broke Major League Baseball's color barrier six months earlier.
While Red Barber and Mel Allen called the game on the radio, Bob Stanton described the action on NBC.
In 1939, the first regular-season Major League Baseball game was broadcast on TV, and by 1947, television was still a luxury. Fewer than 50,000 TVs were used in the United States, mostly in bars, restaurants, and private clubs in major cities on the East Coast, the Philadelphia Inquirer reported in 2012.
By contrast, millions of fans followed games on the radio. More than 73,000 fans attended Game 1 in Yankee Stadium.
The first broadcast was flawed, as sunlight and shadows obscured the view of NBC cameras, and the network's new and cumbersome equipment broke down.
The Dodgers lost the 1947 World Series to the Yankees in seven games.
The first World Series to be broadcast in color came in 1955 when the Dodgers and Yankees met again. The Dodgers defeated the Yankees that season for their only championship while they were based in Brooklyn.
MARKET MINUTE
Stocks Follow The Bond Market
The bond market drove stock prices for much of last week as investors fretted about rising bond yields. After beginning the week with small gains, stocks resumed their September decline amid weak housing data and a decline in consumer confidence. However, it was the jump in bond yields, which sent the 10-year Treasury yield to near a 15-year high, that may have most undermined investor sentiment. After a failed attempt at a rebound mid-week, stocks staged a Thursday rally on a pause in bond yield increases–a rally that extended into Friday morning on an encouraging core personal consumption expenditures (PCE) price index report. (PCE is the Fed’s preferred inflation gauge.) But the rally faded as traders fixated on a potential government shutdown.
Mixed Economic Signals
Amid recent signs of a labor market cooling (a hopeful sign for ending rate hikes), last Thursday’s initial jobless claims report showed only a slight increase of 204,000. That was the second-lowest reading since January and below economists’ expectations of 215,000. Continuing claims declined by 12,000. That same morning, the final estimate of second-quarter GDP was released, indicating a 2.1 annualized growth rate–unchanged from the previous estimate. However, beneath the headline number, consumer spending was cut to a 0.8 percent rise from its earlier estimate of 1.7 percent–a worrisome revision since consumer spending is the engine of the U.S. economy.
FINANCIAL STRATEGY OF THE WEEK
October is CyberSecurity Awareness Month
The internet makes it possible for many of us to work from home, shop, attend religious services, and stay connected with family and friends. Unfortunately, those conveniences come with risk, and cybercriminals are upping their game. Here are a few ways to protect yourself from hacks, scams, and malware.
Look twice before you click. Cybercriminals will try to get you to act quickly through subject lines and messaging; pause to consider before opening an unexpected email attachment. Most importantly, NEVER click on a link asking you to enter or change your password. Always go to the site to enter your password or call the company directly if there appears to be a problem.
Use strong passwords. Strong passwords are reasonably long and use a combination of upper and lower-case letters, numbers, and special characters. Don’t keep a list of passwords anywhere near your device, and if you keep a list, don’t spell out your password. Instead, record a hint, followed by the numbers and symbols, ideally unique to each site. Another option is to consider purchasing a password management system.
Add Two-Factor Authentication. For sensitive sites, such as financial accounts, add two-factor identification. After signing in, the institution will text, call, or email a one-time code.
Stay current. Google your name and delete old, unused accounts that come up. Clear your browser history periodically and delete apps you no longer use. Use the latest security software, web browsers, and operating systems. Regularly check for updates and sign up for automatic updates when you can.
Stay independent. When signing up for a new service or app, pass up the offer to sign in using Facebook or your Google account, which exposes the data in your accounts. You can manage connected accounts on social sites and disconnect any you no longer want to have connected.
It’s important to stay vigilant about securing your financial and personal information. Please feel free to send these tips along to anyone who may benefit.