Telemus Weekly Market Review July 6th - July 10th, 2020
June 29 – July 3 Week in Review
It was mostly a positive week for stocks last week. The S&P 500 rose a respectable 1.8%, followed by a 1.0% gain for the Dow Jones Industrial Average. The tech heavy Nasdaq Composite was where most of the action was, rising 4.0% and closing at a record high in four of the five trading sessions. The small-cap Russell 2000 couldn’t keep up with its larger cap brethren declining 0.6% for the week.
The S&P 500 consumer discretionary, communication services, and information technology sectors were largely responsible for the market's advance. Conversely, the energy, real estate, industrials, health care, and utilities sectors finished lower last week.
Once again the bull market in mega-cap technology stocks was hard to miss last week. Tesla rose 27% despite the lack of any real news. Apple, Microsoft, Alphabet, and Facebook rose between 3-6% as investor enthusiasm for these names continued. Amazon rose 10% brushing aside reports that Walmart is planning to launch a competing delivery service this month. Although not quite a tech stock yet Walmart shares also gained 10%.
On Friday, many of the mega-cap technology stocks did take a breather, as investors rotated back into cyclical and value stocks. In other positive news Gilead Sciences said new data showed an improvement in severely-ill COVID-19 patients and a 62% reduction in the risk of mortality compared to the standard of care when treated with its drug Remdesivir.
In M&A news, Warren Buffett made his first major deal during the pandemic, agreeing to acquire Dominion Energy's natural gas assets for $4 billion in cash and assuming $5.7 billion in debt. Uber agreed to acquire privately held Postmates for $2.65 billion.
In overseas news last week a front-page editorial in one of China's state-run news outlets suggested a "healthy bull market" was imminent for Chinese stocks. Not surprisingly China's Shanghai Composite rose 7.3% last week.
U.S. Treasuries finished the week mixed. The 2 year yield increased one basis point to 0.16%, while the 10 year yield decreased four basis points to 0.63%.
In other markets the U.S. Dollar Index declined 0.7% to 96.63, WTI crude increased 0.4% to $40.57 a barrel and gold finished the week at $1,805.40 an ounce.
July 13 – July 17 Economic Calendar
- Monday
-
Treasury Budget
2:00 PM ET
- Tuesday
- NFIB Small Business Optimism Index
6:00 AM ET - CPI
8:30 AM ET - Redbook
8:55 AM ET
- Wednesday
- MBA Mortgage Applications
7:00 AM ET - Empire State Mfg Survey
8:30 AM ET - Import and Export Prices
8:30 AM ET - Industrial Production
9:15 AM ET - Atlanta Fed Business Inflation Expectations
10:00 AM ET - EIA Petroleum Status Report
10:30 AM ET - Beige Book
2:00 PM ET
- Thursday
- Jobless Claims
8:30 AM ET - Philadelphia Fed Business Outlook Survey
8:30 AM ET - Retail Sales
8:30 AM ET - Business Inventories
10:00 AM ET
Housing Market Index
10:00 AM ET- EIA Natural Gas Report
10:30 AM ET - Treasury International Capital
4:00 PM ET - Fed Balance Sheet
4:30 PM ET - Money Supply
4:30 PM ET
- Friday
Housing Starts
8:30 AM ET- Consumer Sentiment
10:00 AM ET - Baker-Hughes Rig Count
1:00 PM ET
Telemus is a place where financial security is just the starting point. A place where you can identify and realize a more profound, more aspirational mission – to leverage your wealth to help you achieve your envisioned future. Through a deep and thoughtful exploration process with a unique team of experts, we help you define what financial and personal achievement means. By igniting a partnership with Telemus, we will help you attain personal life enrichment, your grandest visions, and your life’s most important goals. At Telemus, we have a different perspective on your financial life. When you take a seat at the Telemus Roundtable, you gain access to the most compelling conversations and inspired solutions for your financial future. We offer you a brand new, more holistic outlook far beyond just investment management which we know will serve as the inspiration for a more enriched life.
