June 15 – June 19 Week in Review

The markets were back in rally mode last week. The S&P 500 advanced 1.9%, the Nasdaq Composite 3.7%, the Russell 2000 2.2% and the Dow Jones Industrial Average 1.0%.

Eight of the 11 S&P 500 sectors finished the week with gains, including the health care, information technology, consumer staples, and consumer discretionary sectors. The utilities, energy, and real estate sectors closed lower.

The week started with stocks extending the prior week's sharp pullback, but investors quickly started buying the dip, helped by the Fed announcing on Monday that it will start buying individual corporate bonds through its Secondary Market Corporate Credit Facility.

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Risk sentiment was further buoyed by a number of positive news reports. Retail sales rebounded 17.7% in May. Bloomberg reported that President Trump was preparing a $1 trillion infrastructure proposal. Lastly the BBC reported a steroidal treatment for COVID-19 in the UK had reduced deaths in severely ill patients.

The reopening narrative seemed to be back in play, but it ran into some resistance at the end of the week. Boston Fed President Rosengren warned that economic rebound in the second half of the year will likely be slower than initially expected due to the continued spread of the coronavirus. Arizona, Florida , and California reported noticeable daily increases in coronavirus cases, and it was reported that Apple will temporarily re-close some stores again due to COVID risks.

In other developments last week, initial jobless claims for the week ending June 13th remained elevated at 1.508 million, and Fed Chair Powell provided his semiannual monetary policy testimony before Congress. Mr. Powell reminded lawmakers of their spending powers, reiterating they should do more to support the economy.

U.S. Treasuries traded in a relatively narrow range last week and closed near their starting positions. The 2 year yield increased one basis point to 0.19%, and the 10 year yield was flat at 0.70%.

In other markets WTI crude futures rose 9.7% to $39.74 a barrel, the U.S. Dollar Index gained 0.4% to 97.67, and gold closed at $1,756.20 an ounce.

June 22 – June 26 Economic Calendar

  • Monday
  • Chicago Fed National Activity Index
    8:30 AM ET
  • Existing Home Sales
    10:00 AM ET
  • Tuesday
  • Redbook
    8:55 AM ET
  • PMI Composite Flash
    9:45 AM ET
  • New Homes Sales
    10:00 AM ET
  • Richmond Fed Manufacturing Index
    10:00 AM ET
  • Wednesday
  • MBA Mortgage Applications
    7:00 AM ET
  • FHFA House Price Index
    9:00 AM ET
  • State Street Investor Confidence Index
    10:00 AM ET
  • EIA Petroleum Status Report
    10:30 AM ET
  • Survey of Business Uncertainty 
    11:00 AM ET
  • Thursday
  • Durable Goods Orders
    8:30 AM ET
  • GDP
    8:30 AM ET
  • International Trade in Goods
    8:30 AM ET
  • Jobless Claims
    8:30 AM ET
  • Corporate Profits
    8:30 AM ET
  • Retail Inventories [Advance]
    8:30 AM ET
  • Wholesale Inventories [Advance]
    10:00 AM ET
  • EIA Natural Gas Report
    10:30 AM ET
  • Kansas City Fed Manufacturing Index
    10:30 AM ET
  • Fed Balance Sheet
    4:30 PM ET
  • Money Supply
    4:30 PM ET
    • Friday
    • Personal Income and Outlays
      8:30 AM ET
    • Consumer Sentiment
      8:30 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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