When it comes to your money, it's really all personal.
Stocks Surge on Lower Inflation
Equities surged last Thursday when the Consumer Price Index (CPI) came in lower than expected. The S&P 500 jumped 5.55% on the day, the largest single day gain since March 2020. The NASDAQ’s 7.4% gain was the 14th largest in the 50-year series history. The 13 larger daily moves all occurred during recessions and only one (March 24, 2020) did not result in new lows before the bear market was over. Yields plunged lower on the week with core bonds returning more than 3%. It was the largest five-day gain for core fixed income since 1988.
Consumer Focused Data Week
With consumers representing almost 70% of the gross domestic product (GDP) in the U.S., this week’s economic news gave us a picture of how they are doing. A
reading on the job outlook showed mixed signals. While headline nonfarm payroll (Current Employment Statistics) increased by 261,000 in October (vs. 315,000 in
September), the household survey (Current Population Survey) painted a vastly different picture.
The Fed Fails to Pivot, Sparking Reversal in Equities
The S&P 500 ended the week down 1.8% thanks to a 3.6% drop in the last 90 minutes of trading as Federal Open Market Committee (FOMC) Chair Jerome Powell extinguished hopes of a bullish Fed pivot. It was the largest percentage drop for the S&P 500 in the last 90 minutes of a FOMC press conference since they began in 1994. The NASDAQ was hit the hardest this week with a drop of 4.1% while small caps had a milder retreat. Fixed income returns were roughly flat.
Equities Stage Huge Reversal Off the Lows, But Will it Hold?
Volatility remains elevated as equity indices posted three consecutive 2% change days. The action started last week with a hotter than expected Consumer Price Index (CPI) report that led the S&P 500 to drop more than 2% to start trading on Thursday. It would finish the day up more than 2%. The index would then lose more than 2% on Friday only to gain 2.5% on Monday. For the week the S&P 500 finished up 3.3% with the energy sector coming to life and posting a gain of 5.2%. Emerging markets and foreign developed equities were positive on the week but lagged domestic indices. Core fixed income was down 1.4% as yields moved higher.
STUTTGART, AR – Farmers & Merchants Bank President of Agriculture Division and Dewitt Market President Kirk Vansandt has been named to the Arkansas Money & Politics 2022 class of Top 100 Professionals.
Equities Retreat to New Lows Amid Rising Bond Yields
Equities traded lower this week with the S&P 500 trading at its lowest level of the year. The index finished down 1.9% on the week and is down 21.1% on the year. Emerging markets were down 6% on the week as global currency and bond market volatility spiked.
MOUNTAIN HOME, AR – The Baxter Healthy Foundation will benefit from a $5,000 sponsorship donation for the upcoming Buck-a-Roo Ball from Farmers and Merchants Bank.Members of the Farmers & Merchants team recently presented the check.
Farmers and Merchants Bank is proud to host a new Coffee Talk series at their main branch on Hickory Street in Mountain Home beginning Friday, September 2nd.
The free event series, which will provide an opportunity for Mountain Home neighbors to network, will feature community leaders and local projects. The first speaker will be Bomber Football Coach Steve Ary, who will forecast the upcoming season.
STUTTGART, AR – Farmers and Merchants Bank and The Bank of Fayetteville, a division of The Farmers and Merchants Bank, are pleased to announce the promotion of Marcus Seward to the role of Assistant Vice President, Loan & Bankruptcy Officer. In his new role Seward will maintain a diverse loan portfolio and develop commercial relationships in the Northwest Arkansas area.
STUTTGART, AR – The Board of Directors of Farmers and Merchants Bank is pleased to announce the appointment of Randy Bearce to the position of Market President. In his new role, Bearce will oversee the retail and lending operations of the expanding Jonesboro market. Most recently, he served as a commercial lender.
Market President Named to 2022 Women in Business From Northwest Arkansas Business Journal
FAYETTEVILLE, AR – Northwest Arkansas Market President Jennifer Hardin has been recognized by the Northwest Arkansas Business Journal as one of the 2022 Women in Business. In her role, Hardin oversees the retail and lending operations of nine bank locations in Northwest Arkansas.
STUTTGART, AR – Farmers and Merchants Bank and The Bank of Fayetteville are pleased to announce the promotion of Pepper Morrison to the role of Assistant Vice President, Treasury Management Manager. In her new position, Morrison will oversee specialized products and banking strategies for business and nonprofit customers statewide.
Mountain Home Native to Lead Community Development Efforts
Farmers and Merchants Bank is pleased to welcome Katie Shay Schneider to the role of Community Development Officer for the Mountain Home market. In her new role, Katie will build local relationships, work with strategic partners to support the business community and improve quality of life in the North Central Arkansas region while overseeing charitable donations for the bank.
Sally Gilbert, long-time Mountain Home resident and community banking leader, has joined Farmers & Merchants Bank as the new market president for Mountain Home and the surrounding communities. Gilbert will lead Farmers and Merchants Bank operations in the region with a focus on true community banking, ensuring the highest quality professional service and guiding the bank’s long-term investments and commitment to the Mountain Home community.
Farmers & Merchants Bank and The Bank of Fayetteville would like to introduce you to our new MVP Centers. These Integrated Teller Machines are a new and improved way to do banking on the go! Follow this link to see a quick video on how our MVP works.
January 9, 2021 (Stuttgart, Arkansas)- The Board of Directors of Farmers and Merchants Bank and the Bank of Fayetteville announces the appointment of Brad Chambless as Chief Executive Officer and President as of January 1, 2021.