Telemus Weekly Market Review July 19th - July 23rd, 2021

    | July 26, 2021

     July 19 – July 23 Week in Review

    The market was a bit of Dr. Jekyll and Mr. Hyde this past week. On Monday the Dow Jones Industrial Average fell -2.1%, its largest single day decline of 2021. The decline was primary fueled by fears associated with the COVID-19 Delta variant. Investors bought the dip, resulting in stocks rising the rest of the week. When it was all said and done, the S&P 500 climbed +2.0%, the Dow +1.1%, while the NASDAQ Composite was the top performer adding +2.8%. Small cap stocks, as measured by the Russell 2000, appreciated +2.2%.

    Monday’s decline resulted in the S&P 500 hitting its 50-day moving average, a key technical level. The market used this as a resistance point, with volumes out of traditional retail brokerage platforms increasing following Monday’s retrenchment. Overall market volumes, however, hit a summer lull as Thursday had the second lowest number of shares traded this year.

     

     

    Week in Review July 26

     

    The pace of second quarter earnings reports began to pick up. Positive surprises came from Chipotle Mexican Grill, whose sales were ahead of expectations. American Express also rallied after it added a record number of new customers. Netflix shares, however, declined -2.8% during the week after their subscriber forecast for the coming quarter came up short of expectations. Southwest and American Airlines slipped after sounding a more cautious tone around business travel demand.

    Economic readings released this week were generally positive. New home construction grew 6.3% and have climbed 29.1% versus a year ago. The gain in new home construction was a positive surprise despite raw material shortages. According to the National Association of Realtors, home prices are up 24% over the past year with the median home price nationally now at $363,000. This week’s jobless claims reading was higher than expected at 419,000, up from 350,000 the prior week.

    Similar to stocks, bonds seesawed as well. On Monday, Treasury prices gained as yield fell below 1.2%. By weeks end, the 10-year Treasury had risen back to 1.28%, finishing just a basis point lower from where it began the week. Credit spreads, or the difference in yields between corporate bonds and Treasuries, widened on Monday by the largest amount in two months. By Friday, spreads on investment grade bonds were back to where they started.

    Real asset markets had similar characteristics to those of stocks and bonds. The price of oil plummeted -7.5% on Monday, its biggest decline since September. Oil prices were impacted by OPEC+, which agreed to a supply hike. Oil prices rebounded as the week went on finishing at $72.07, up +0.4%. Natural gas prices continue to climb, hitting a 31-month high. Natural gas prices were up 10.5% for the week and are up 59.6% year-to-date. The dollar gyrated serving as a safe haven asset on Monday and softening slightly the remainder of the week. All told, the dollar appreciated by +0.2%. Gold sold off by -0.7%, ending at $1,801 a troy ounce.

     

     

    July 26 – July 30 Economic Calendar

    • Monday

    • New Home Sales 
      10:00 AM ET

    • Dallas Fed Manufacturing Activity
      10:30AM ET
    •    Tuesday  

    • Durable Goods Orders
      8:30AM ET
    • FHFA House Price Index
      9:00AM ET
    • S&P Core Logic Home Price Index
      9:00AM ET
    • Conference Board Consumer Confidence 
      10:00AM ET
    • Wednesday

    • MBA Mortgage Applications
      7:00AM ET
    • Retail Inventories
      8:30AM ET
    • FOMC Rate Decision 
      2:00PM ET
    • Thursday

    • Core PCE
      8:30AM ET

    • Initial Jobless Claims
      8:30AM ET

    • Personal Consumption
      8:30AM ET
    • Pending Home Sales
      11:00AM ET
      •         Friday       

      • Personal Income
        8:30AM ET
      • PCE
        8:30AM ET
    • University of Michigan Sentiment
      10:00AM ET

     

     

     

     

     

     

     

     



    PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. Investment decisions should always be made based on the client's specific financial needs, goals and objectives, time horizon and risk tolerance. Current and future portfolio holdings are subject to risk. Risks may include interest-rate risk, market risk, inflation risk, deflation risk, currency risk, reinvestment risk, business risk, liquidity risk, financial risk, and cybersecurity risk. These risks are more fully described in Telemus Capital's Firm Brochure (Part 2A of Form ADV), which is available upon request. Telemus Capital does not guarantee the results of any investments. Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, and may lose value. Facts presented have been obtained from sources believed to be reliable. Telemus, however, cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source.

    The S&P 500 index includes 500 leading companies in the US and is widely regarded as the best single gauge of large-cap US equities. The Dow Jones Industrial Average (DJIA) is a widely-watched benchmark index in the U.S. for blue-chip stocks; it is a price-weighted index that tracks 30 large, publicly-owned companies trading on the New York Stock Exchange and the NASDAQ. The Nasdaq Composite Index is a large market-cap-weighted index of more than 2,500 stocks, American depositary receipts (ADRs), and real estate investment trusts (REITs), among others. The Russell 2000 index measures the performance of approximately 2,000 smallest-cap American companies in the Russell 3000 Index.

     

    An index is not a security in which an investment can be made, as they are unmanaged vehicles that serve as market indicators only and do not account for the deduction of management fees and/or transaction costs generally associated with investable products. It should not be assumed that portfolio holdings will correspond directly to the comparative index benchmark shown above. The holdings and performance of Telemus client accounts may vary widely from those of the presented indices. Advisory services are only offered to clients or prospective clients where Telemus and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Telemus unless a client service agreement is in place. All composite data and corresponding calculations are available upon request.

    Matt Dmytryszyn

    Matt joined the Telemus team in 2018. As Chief Investment Officer, he leads the firms the investment process and research effort. Matt has experience as an equity analyst and portfolio manager and has advised corporate pension plans on their manager selection. He’s been quoted in Money Magazine and Barron’s.

    Matt Dmytryszyn mdmytryszyn@telemus.com
    New call-to-action
    New Call-to-action