A look back
- The S&P 500 posted its third-straight weekly gain, rising 0.4% and closing at a new all-time high on Thursday. The Energy sector gained over 7% to lead, while Consumer Discretionary was the worst performing sector. Elsewhere, Korea and Taiwan led emerging markets to a 2.7% rally.
- The yield curve continued to steepen as the 2-year U.S. Treasury yield dropped to 4.17% while the 10- year climbed to 4.68%. Meanwhile, U.S. crude oil prices gained over 5% to finish the week above $82.
- Economic data was generally softer than expected, with the Consumer and Producer Price Indices (CPI and PPI) coming in at or below forecasts and Retail Sales weaker. Futures markets are now pricing in just a 31% chance of a rate hike in September.
A look ahead
- While most of the S&P 500 has already reported results, retail earnings will take center stage after last week’s soft Retail Sales data. Twelve S&P 500 companies are set to report earnings this week.
- The housing market will be in focus in a relatively light week for economic data, with Pending Home Sales and Housing Starts on the docket. Investors will also parse minutes from the most recent Federal Reserve policy meeting for clues on the direction of monetary policy.
- Economic releases: Housing Market Index, Pending Home Sales, Housing Starts, Industrial Production, FOMC Minutes, Leading Economic Index.
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