July 13 – July 17 Week in Review

It was a mixed bag on Wall St. last week as money flowed out of mega-cap technology stocks and into value oriented financial and cyclical stocks, large and small. The S&P 500 advanced 1.3%, the Dow Jones Industrial Average 2.3% and the Russell 2000 3.6%. The Nasdaq Composite finally took a breather and finished down 1.1%.

On the earnings front the big banks kicked off Q2 earnings with announcements of large provisions for credit losses, but that didn't deter investors from investing in this unloved space last week. The S&P 500 financials sector rose as part of the rotational trade.

Commentary 7.20.20

The industrials and materials sectors benefited the most from this rotation, though, rising more than 5.0%. The health care sector also outperformed, deriving its strength from another round of encouraging vaccine news. The Pfizer and BioNTech collaboration received fast-track designation from the FDA, and Moderna's vaccine candidate elicited neutralizing antibodies in all 45 participants in a Phase 1 study.

Despite the gains overall the market was slowed down by the pullback in mega-cap technology stocks, festering U.S.-China tensions, and a rollback in the reopening process in California due to the rising coronavirus caseload there.

Netflix shares fell 10%, with a bulk of those losses coming after the company issued cautious subscriber guidance on their earnings call. Amazon and Microsoft pulled back 7% and 5%, respectively, following strong performances in the prior week. Apple was up fractionally for the week but closed more than 4% off its intra-week high.

In the bond market U.S. Treasuries finished virtually unchanged. The 2 year yield declined two basis points to 0.14%, and the 10 year yield was unchanged at 0.63%.

In other markets the U.S. Dollar Index declined 0.7% to 95.95, WTI crude finished little changed at $40.56 a barrel and gold closed at $1,812 an ounce.

July 20 – July 24 Economic Calendar

  • Monday
  •  



  • Tuesday
  • Chicago Fed National Activity Index
    8:30 AM ET
  • Redbook
    8:55 AM ET





  • Wednesday
  • MBA Mortgage Applications
    7:00 AM ET
  • FHFA House Price Index
    9:00 AM ET
  • Existing Home Sales
    10:00 AM ET

  • EIA Petroleum Status Report
    10:30 AM ET



  • Thursday
  • Jobless Claims
    8:30 AM ET
  • Leading Indicators
    10:00 AM ET
  • EIA Natural Gas Report
    10:30 AM ET
  • Kansas City Fed Manufacturing Index
    11:00 AM ET

  • Fed Balance Sheet
    4:30 PM ET

  • Money Supply
    4:30 PM ET



    • Friday
    • PMI Composite Flash
      9:45 AM ET

    • New Home Sales
      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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