Telemus Weekly Market Review June 28th - July 2nd, 2021
June 28 – July 2 Week in Review
Markets continued to set new highs as a tech fueled rally drove most indices higher. The NASDAQ and the S&P 500 finished the week at record levels, rallying +1.9% and 1.7% respectively on the week. The Dow Jones Industrial finished with a positive gain of +1.0%. Small Cap stocks fell on the week with the Russell 2000 down -1.2%.
On Monday, a federal judge dismissed an antitrust suit against Facebook, helping to further gains in technology stocks. On the week, the tech sector was the top performer followed by consumer discretionary and health care. Energy, financials, and utilities were the lone sectors in the red on the week.
The most anticipated economic announcement of the week was the June jobs report, which was released on Friday. It showed the economy added 850,000 jobs. A growing number of individuals looking for work resulted in a slight uptick in the unemployment rate going from 5.8% to 5.9%. The report also showed a muted increase in average hourly wages, which were up 0.3%.
United Airlines made a significant splash after announcing plans to order $27 billion worth of aircraft. Alternatively, Walgreens Boots Alliance fell after the company exceeded quarterly earnings expectations, but noted they expected traffic to soften from recent levels as the benefit from COVID vaccines fades.
The yield curve continued its flattening trend as rates on the 2-year Treasury rose 4 basis point to 0.31%. Conversely, the 10-year Treasury yield fell 8 basis points to finish at 1.41%. In total, bond prices finished to the positive as the Bloomberg Barclays U.S. Aggregate index rose +0.6%.
In other markets, the dollar strengthened appreciating +0.4% to 92.25. Oil continues to set record highs, eclipsing $75 a barrel as the commodity gained +1.5%. Gold held steady, adding +0.3% to $1,782.60 a troy ounce.
July 5 – July 9 Economic Calendar
- Monday
Markets Closed
- Tuesday
Markit US PMI
9:45AM ET- ISM Services Index
10:00AM ET
- Wednesday
MBA Mortgage Applications
7:00AM ET- JOLTS Job Openings
10:00AM ET - FOMC Meeting Minutes
2:00PM ET
- Thursday
Initial Jobless Claims
8:30AM ET- Consumer Credit
3:00PM ET
- Friday
Wholesale Inventories
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. The Bloomberg Barclays US Aggregate Bond is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. In addition to investment grade corporate debt, the index tracks government debt, mortgage-backed securities (MBS) and asset-backed securities (ABS) to simulate the universe of investable bonds that meet certain criteria. In order to be included in the Agg, bonds must be of investment grade or higher, have an outstanding par value of at least $100 million and have at least one year until maturity.
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.
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.
