Telemus Weekly Market Review June 29th - July 3rd, 2020
June 29 – July 3 Week in Review
The markets resumed their winning ways last week as investors remained positive despite a spike in Covid-19 cases in numerous states. The S&P 500 rose 4.0%, the tech heavy Nasdaq Composite 4.6%, the Dow Jones Industrial Average rose 3.3%, and the small cap Russell 2000 index rose 3.9%
The gains were broad and noteworthy for their strength. All 11 S&P 500 sectors closed in positive territory with gains ranging from 1.6% for the financials to 5.6% for communication services.
Interestingly, last week was not all that different from the prior week from a macro news perspective. Companies and states continued to take preemptive measures to help slow down the record count of new coronavirus cases, while economic data continued to depict a faster than expected recovery.
In the labor market, nonfarm payrolls increased by 4.8 million in June, the unemployment rate ticked lower to 11.1% in June from 13.3% in May, and weekly initial claims declined for the 13th straight week to 1.427 million.
Outside the labor market, the ISM Manufacturing Index for June returned into expansionary mode with a 52.6% reading, pending home sales rebounded 44.3% in May, and factory orders rebounded 8.0% in May.
In other positive developments, Boeing resumed 737 MAX flights for certification, and Pfizer and BioNTech reportedly made progress on their COVID-19 vaccine candidate. Tesla shares surged 26% last week, bringing its market cap to $224 billion, as money continued to flow into momentum stocks.
U.S. Treasuries finished mixed last week. The 2 year yield declined one basis point to 0.15%, while the 10 year yield increased three basis points to 0.68%.
In other markets the U.S. Dollar Index declined 0.2% to 97.22, WTI crude futures rose 5.0%, or $1.93, to $40.42 a barrel and gold closed at $1,787.30 an ounce.
July 6 – July 10 Economic Calendar
- Monday
- PMI Services Index
9:45 AM ET - ISM Non-Mfg Index
10:00 AM ET - TD Ameritrade IMX
12:30 PM ET
- Tuesday
- Redbook
8:55 AM ET - JOLTS
10:00 AM ET
- Wednesday
- MBA Mortgage Applications
7:00 AM ET - EIA Petroleum Status Report
10:30 AM ET - Consumer Credit
3:00 PM ET
- Thursday
- Jobless Claims
8:30 AM ET - Wholesale Trade
10:00 AM ET - EIA Natural Gas Report
10:30 AM ET - Fed Balance Sheet
4:30 PM ET - Money Supply
4:30 PM ET
- Friday
PPI-FD
8:30 AM ET- Baker-Hughes Rig Count
1:00 PM ET - Treasury Budget
2:00 PM ET
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