Quiz your knowledge on the stock market here as we cover Chairman Powell's comments on the bond buying!

ROBARE & JONES ON THE MARKETS

The S&P 500 rose 1.5% this week in a rally that sent the market benchmark above the 4,500 level for the first time as investors were relieved by comments from Federal Reserve Chairman Jerome Powell that were interpreted as a sign the central bank isn't rushing to begin tapering its bond buying stimulus program.

Markets are now up 2.6% for the month of August and is up 20% for year to date. Energy had the largest surge this week, up 7.3% which was boosted by a jump in crude oil futures amid shrinking US inventories of oil and gas.

The price of oil and gas is anticipated to slightly rise over the next week with many refineries closing during the passing of Hurricane Ida. With many power outages in the State of Louisiana, this could further delay some of the production to pick back up in the next few days.

This week all eyes will be on the August employment data, including private sector data from ADP on Wednesday, the Labor Department's weekly jobless claims on Thursday and the monthly payrolls and unemployment rate to be reported Friday by the Labor Department.

Let's take a look at the markets from this past week!

Market Quiz!

The 2020 TIAA Institute-Global Financial Literacy Excellence Center Personal Finance Index reported that more than half of U.S. adults understood borrowing, saving, earning and consuming, while less than half had a clear understanding of investing and risk. Test your knowledge of stocks by taking this brief quiz!

What is a characteristic of a bull market?
1. Stock prices rise
2. Stock prices fall
3. Investors are pessimistic
4. None of the above

A stockholder is ______ who/that owns at least one share of a corporation’s stock.
1. A person
2. A company
3. An institution
4. All of the above

A person may be able to invest in a company by purchasing:
1. Common stock
2. Preferred stock
3. Corporate bonds
4. All of the above

What term is used to describe a stock market decline of 10 percent?
1. A dip
2. A correction
3. A haircut
4. A bath

List the following from highest risk to lowest risk:
1. Emerging market stock
2. 10-year Treasury bond
3. 30-year investment-grade bond
4. Savings account
5. U.S. blue chip stock

Which of the following is a reason that a company might issue stock?
1. Raise capital
2. Transfer ownership
3. Reduce debt
4. All of the above

Do you know the answers? Contact to see if you're right!

Sources:

https://www.goodreads.com/quotes/428038-raise-your-words-not-voice-it-is-rain-that-grows

https://www.federalreserve.gov/monetarypolicy/files/monetary20210728a1.pdf

https://www.federalreserve.gov/newsevents/speech/powell20210827a.htm

https://www.investopedia.com/terms/f/federalfundsrate.asp

https://www.bea.gov/news/2021/gross-domestic-product-2nd-quarter-2021-second-estimate-corporate-profits-2nd-quarter

https://lipperalpha.refinitiv.com/wp-content/uploads/2021/08/TRPR_82221_608.pdf

https://www.reuters.com/business/wall-st-week-ahead-blazing-us-stock-rally-faces-markets-toughest-month-2021-08-27/

https://www.barrons.com/market-data?mod=BOL_TOPNAV (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/08-30-21_Barrons_Overview_8.pdf)

https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield

https://gflec.org/wp-content/uploads/2020/04/TIAA-Institute-GFLEC_2020-P-Fin-Index_April-2020.pdf?x20437

https://www.investopedia.com/terms/s/stockmarket.asp

https://www.goodreads.com/author/quotes/1438.Walt_Whitman

https://www.investopedia.com/terms/b/bullmarket.asp

https://www.investopedia.com/terms/s/shareholder.asp

https://www.investopedia.com/articles/active-trading/111114/preferred-stocks-versus-bonds-how-choose.asp

https://www.investopedia.com/terms/c/correction.asp

https://www.investopedia.com/ask/answers/012815/what-assets-are-most-risky-and-what-assets-are-safest.asp

https://www.upcounsel.com/why-do-corporations-issue-stock