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
    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

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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