July 22 – July 26 Week in Review

The stock market marched higher last week helped by upbeat corporate earnings results and an encouraging first look into second quarter GDP. The S&P 500, up 1.7%, and the Nasdaq Composite, up 2.3%, set new record highs in the process. The Russell 2000 also advanced, up 2.0%. The Dow Jones Industrial Average increased just 0.1%, undercut by a decline in the shares of Boeing.

Video 07.29.2019

The S&P 500 communication services sector was last week's top performer, driven by shares of Alphabet. Alphabet handily beat expectations and as a result shares climbed more than 10% on Friday. The financials and information technology sectors also finished higher last week, while the energy and utilities sectors finished lower.

The Philadelphia Semiconductor Index (PHLX) remained on a tear, rising 4.6% last week on positive commentary out of Goldman Sachs, upbeat earnings results from Texas Instruments, and news that the U.S. will head to China this week to continue trade talks. For the year, the PHLX is now up 38.0%.

More than 40% of S&P 500 companies have now released their earnings reports, according to FactSet, and most of the news continued to come in better than expected.

Also last week the Department of Justice announced a broad antitrust review into the "market-leading online platforms". Investors didn't appear too concerned about the regulatory overhang, though, amid the positive mood in the market. Investors, however, were less pleased with tepid revenue guidance from Facebook and a profit miss from Amazon.

On the data front, the advance estimate for second quarter GDP increased at a seasonally adjusted annual rate of 2.1%. Although the growth rate was lower than the 3.1% recorded in the first quarter, strong consumer spending helped the economy grow better than expected.

U.S. Treasuries ended last week little changed, leaving yields at relatively low levels that continued to favor risk assets. The 2 year yield increased three basis points to 1.87%, and the 10 year yield remained unchanged at 2.08%.

In other markets WTI crude advanced 1.0% to $56.19 a barrel and the U.S. Dollar Index advanced 0.9% to 98.01.

July 29 – August 2 Economic Calendar

  • Monday
  • Dallas Fed Mfg Survey
    10:30 AM ET

  • Tuesday
  • FOMC Meeting Begins
  • Personal Income and Outlays
    8:30 AM ET
  • Redbook
    8:55 AM ET
  • S&P Corelogic Case-Shiller HPI
    9:00 AM ET
  • Consumer Confidence
    10:00 AM ET
  • Pending Home Sales Index
    10:00 AM ET

  • Wednesday
  • MBA Mortgage Applications
    7:00 AM ET
  • ADP Employment Report
    8:15 AM ET
  • Employment Cost Index
    8:30 AM ET
  • Chicago PMI
    9:45 AM ET
  • State Street Investor Confidence Index
    10:00 AM ET
  • EIA Petroleum Status Report
    10:30 AM ET
  • FOMC Meeting Announcement 
    2:00 PM ET
  • Fed Chair Press Conference
    2:30 PM ET
  • Farm Prices
    3:00 PM ET

  • Thursday
  • Challenger Job-Cut Report
    7:30 AM ET

  • Jobless Claims
    8:30 AM ET
  • PMI Manufacturing Index
    9:45 AM ET

  • ISM Mfg Index
    10:00 AM ET
  • Construction Spending
    10:00 AM ET
  • EIA Natural Gas Report
    10:30 AM ET

  • Fed Balance Sheet
    4:30 PM ET
  • Money Supply
    4:30 PM ET
    • Friday
    • Employment Situation
      8:30 AM ET

       

    • International Trade
      8:30 AM ET
    • Consumer Sentiment
      10:00 AM ET
    • Factory Orders
      10:00 AM ET
    • Baker-Hughes Rig Count
      1:00 PM ET

PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. This commentary is a matter of opinion and is for informational purposes only. It is not intended as investment advice and does not address or account for individual investor circumstances. Investment decisions should always be made based on the client's specific financial needs, goals and objectives, time horizon and risk tolerance. The statements contained herein are based solely upon the opinions of Telemus Capital, LLC. All opinions and views constitute our judgments as of the date of writing and are subject to change at any time without notice. Information was obtained from third party sources, which we believe to be reliable, but not guaranteed.

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