Category: Weekly Updates

Weekly Updates

Financial News and Portfolio Management Discussion through July 24th

US stocks ended the week at new record highs on a strong start to earnings season. The S&P 500 climbed 2.0% and Dow rose 1.1% for the week. Abroad, the FTSE All World Ex US was down 0.5% for the week. The yield on the 10-year Treasury was flat over the week ending at 1.30%.

Of the 110 S&P 500 companies to report earnings to date, 85% have beaten analyst forecasts.

OPEC and Russia led oil producers agreed to restore all the cuts that were made to production during the pandemic with plan to gradually ramp up production.

Initial jobless claims rose to 419,000 when a decline was expected.

The ECB left their benchmark interest rate unchanged after their meeting and said they would keep the benchmark rate at or below its current level until they see inflation stabilize around 2%.

In June, median US home prices reached another record rising 23% from a year ago.

US business activity continued to expand in July, but at a slower pace.

Financial News and Portfolio Management Discussion through July 17th

US stocks fell over the week over concerns over future economic growth and inflation. The S&P 500 fell 1.0% and Dow dipped 0.5% for the week. Abroad, the FTSE All World Ex US was up 0.6% for the week. The yield on the 10-year Treasury fell over the week to end at 1.30%, its lowest level since mid-February.

The CPI rose 5.4% from a year ago, the highest 12 month increase since 2008 and higher than expected.

In comments in front of Congress, Fed Chief Powell said he expected inflation to moderate after bottlenecks and supply chain constraints unwind, but the central bank wouldn’t hesitate to raise interest rates to keep inflation in check.

China’s economy grew 7.9% in the second quarter, in line with estimates. June saw better than expected numbers on factory output, retail sales, and capital investment.

Weekly initial unemployment filings fell to 360,000 over the past week.

Consumer sentiment fell in early July on inflation worries.

US retail sales rose 0.6%, while a drop was expected.

Financial News and Portfolio Management Discussion through July 3rd

US stocks ended the week at new record highs on positive economic news. The S&P 500 was up 1.7% and Dow advanced 1.0% for the week. Abroad, the FTSE All World Ex US fell 1.2% for the week. The yield on the 10-year Treasury fell over the week to end at 1.44%, its lowest level since early March. Oil prices ended the week at $75.16, their highest level since 2018.

The June jobs reports showed employers added 850,000 jobs over the month beating expectations. It was the largest increase in 10 months. The unemployment rate ticked up from 5.8% to 5.9% due to more Americans entering the labor pool.

New weekly unemployment filings fell to 364,000 hitting a new pandemic low.

June auto sales remained strong though cooled from earlier in the quarter due to limited supply. The average sales price hit a record.

OPEC and other oil producers failed to reach an agreement on increasing oil supply.

Consumers spending rose 0.7% in May and April was revised up to 0.9% from 0.5% as consumers opened their wallets.

Consumer confidence rose in June.

Financial News and Portfolio Management Discussion through June 26th

US stocks posted their best week since February driven by economic news and an infrastructure plan agreement. The S&P 500 jumped 2.7%, while the Dow surged 3.4% for the week. Abroad, the FTSE All World Ex US was gained 2.1% for the week. The yield on the 10-year Treasury rose to 1.51%, increasing for the first time in six weeks.

The President and a group of Senators reached a $1 trillion infrastructure plan after weeks of negotiations.

In prepared testimony before congress Fed Chief Powell said he expected job growth to improve in the coming months and inflation pressures should ease.

US home prices rose 24% from a year earlier in May, their largest ever annual increase since the data was recorded in 1999.

Weekly unemployment claims were 411,000 down slightly from the week before.

Consumers spending rose 0.7% in May and April was revised up to 0.9% from 0.5% as consumers opened their wallets.

Eurozone business activity is growing at the fastest pace in 15 years.

Financial News and Portfolio Management Discussion through June 19th

US stocks posted their worst week in close to 8 months as the Fed announced it planned to move sooner to raise interest rates than previously expected. The S&P 500 fell 1.9%, while the Dow sank 3.5% for the week. Abroad, the FTSE All World Ex US was down 0.9% for the week. The yield on the 10-year Treasury fell further over the week ending at 1.44%, falling for five straight weeks. Oil prices hit a two and half year high of $72.12 a barrel.

France, Italy, and Spain have extended government support measures for businesses as the region continues to struggle to bounce back from the pandemic.

Retail sales fell 1.3% in May.

China’s economy cooled in May. While factory output remained strong, investment and domestic consumption were below expectations.

The Fed estimated at their June meeting they would be raising the Fed Funds rate by the end of 2023, earlier than previously projected.

Fed Governor Bullard said he thought the Fed could raise the Fed funds rate as soon as late 2022.