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
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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.
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