July 27 – July 31 Week in Review

It was mixed bag for the markets last week. The S&P 500 rose 1.7%, and the Nasdaq Composite rose 3.7%, driven by strong earnings reports from some of the mega-cap tech names. The Dow Jones Industrial Average declined 0.2%, and the Russell 2000 declined 0.9%. A surge in Covid-19 cases nationwide and continuing tensions with China didn’t help matters.

It was a big week for corporate earnings. Apple, Amazon, Alphabet, and Facebook all exceeded quarterly expectations, sending shares noticeably higher on Friday. Naturally, investors entered the weekend wondering if these stocks can sustain these gains and, consequently, help mitigate a possible market pullback. Earlier in the week, shareholders were unfazed by the House Judiciary Committee's antitrust hearing for these same names.

 

Commentary 8.3.20

 

The S&P 500 information technology, real estate, and consumer discretionary sectors advanced the most last week, while the energy, materials, financials, and industrials sectors underperformed.

These cyclical sectors were pressured by economic data that showed Q2 GDP declined at an annualized rate of 32.9%, initial and continuing jobless claims increased on a weekly basis, and consumer confidence and consumer sentiment declined in July versus June. In addition, lawmakers disappointingly extended their coronavirus relief bill talks into the weekend.

The Fed was in the spotlight, too. The FOMC left rates unchanged and Fed Chair Powell made it abundantly clear that the central bank is not going to raise rates anytime soon. The Fed also extended its lending facilities through the end of the year.

On the interest rate front the 2 year yield declined four basis points for the week closing at 0.10%, and the 10 year yield also fell four basis points to close at 0.54%.

Elsewhere the U.S. Dollar Index fell to a 2-year low Friday closing at 93.46. Gold futures broke out to new highs closing at $1,986.20 an ounce last week. WTI crude fell 2.3%, or $0.95, to $40.13 a barrel.

August 3 – August 7 Economic Calendar

  • Monday
  •  

    PMI Manufacturing Index
    9:45 AM ET

  • ISM Mfg Index
    10:00 AM ET
  • Construction Spending
    10:00 AM ET
  • Tuesday
  • Motor Vehicle Sales
    7:00 AM ET
  • Redbook
    8:55 AM ET
  • Factory Orders
    10:00 AM ET




  • Wednesday
  • MBA Mortgage Applications
    7:00 AM ET
  • ADP Employment Report
    8:15 AM ET

  • International Trade
    8:30 AM ET

  • Treasury Refunding Announcement
    8:30 AM ET
  • PMI Services Index
    9:45 AM ET

  • ISM Non-Manufacturing Index
    10:00 AM ET

  • EIA Petroleum Status Report
    10:30 AM ET




  • Thursday
  • Challenger Job-Cut Report
    7:30 AM ET
  • Jobless Claims
    8:30 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

    • Wholesale Trade
      10:00 AM ET
    • Baker-Hughes Rig Count
      1:00 PM ET
    • Consumer Credit
      3:00 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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