MARKET STATISTICS
Weekly and Year-To-Date Performance
INDEX 12/31/2017 07/06/2018 07/13/2018 % Change Week % Change YTD
 Dow Jones Industrial Average 24,719.22 24,456.48 25,019.41 2.30%  1.21%
 S&P 500 2,673.61 2,759.82  2,801.31 1.50% 4.78%
 Nasdaq Composite 6,909.61 7,682.09  7,828.57 1.91% 13.30%
 Russell Mid-Cap Index 2,081.59 2,144.40  2,161.53  0.80%  3.84%
 Russell Small-Cap Index  1,539.15  1,692.79  1,687.33  -0.32%  9.63%

July 13th, 2018

Dear Friends,

The equity markets closed out the week with solid gains for the headline indexes and a new record high for the Nasdaq. For the week the Dow Jones Industrials, S&P 500 and the Nasdaq gained 2.3%, 1.5% and 1.9% respectively.  The Russell Mid-Cap and MSCI EAFE indexes gained 0.8% and 0.27%.  The Russell Small-Cap index was off 0.32%.

Stocks opened the week with a solid rally Monday. Financials led the gains as the bank index posted its best day in nearly four months and the financial sector overall rose 2.3%.  Shares of Bank of America, JPMorgan and Goldman Sachs closed up 3.64%, 3.1% and 2.8%.  Consumer related and technology stocks also checked in with encouraging gains, led by Amazon, Apple and Netflix which all gained over 1%.  The Dow closed up 320 points or 1.31%, at 24,777.  The S&P and the Nasdaq both added 0.88%.  Crude prices continued their run of late adding another 0.3% on supply concerns to close at $74.01 per barrel.  The benchmark 10-year Treasury note rose just under three basis points to close yielding 2.858%.

The markets continued higher Tuesday extending the Dow’s winning streak into a fourth consecutive session. With earnings season beginning in earnest investors are hopeful that positive results will be a welcome change from the focus on trade and tariffs.  Shares of Pepsi rose over 4% as the company posted earnings that beat expectations and forecasted positive earnings growth in the fourth quarter.  Industrials and consumer-related companies were among the day’s leaders while financials lagged ahead of a number of high-profile earnings calls scheduled for later in the week.  The Dow closed up 143 points or 0.58%, at 24,920.  The S&P and the Nasdaq were up 0.35% and 0.04%.  Crude prices ticked higher adding 0.3% to settle at $74.07.

Stocks fell Wednesday following the announcement of a new round of trade tariffs aimed at China. The 10% tariffs on an estimated $200 billion worth of goods reignited the lingering concerns the back-and-forth escalation would ultimately end in a full-blown trade war.  Large U.S. multi-nationals and industrials bore the brunt of the losses with shares of Boeing and Caterpillar falling 1.9% and 3.2%.  Energy prices fell sharply during the session with crude prices closing with a loss of 4.7% at $70.61 per barrel.  The energy sector finished down 2.2% as shares of Exxon, Chevron and ConocoPhillips sank 1.28%, 3.2% and 2.36%.  The Dow closed with a loss of 219 points or 0.88%, at 24,700.  The S&P and the Nasdaq were off 0.71% and 0.55%.

The markets recovered Thursday with solid gains pushing the Nasdaq to a new all-time record high.  Shares of Amazon, Microsoft and Facebook powered the tech sector all making new highs gaining 2.37%, 2.25% and 2.16%.  The technology sector overall added 1.58%.  Industrials bounced back after Wednesday’s losses with the sector gaining 1.1% as shares of Lockheed Martin, Caterpillar and Boeing rose 2.2%, 1.95% and 1.6%.  In economic news prices at the consumer level inched higher in June but did little to change the overall rising trend.  The Dow closed up 224 points or 0.91%, at 24,925.  The S&P and the Nasdaq added 0.87% and 1.39%.  Crude prices ticked lower finishing down 0.14% at $70.28 per barrel.

Stocks closed mostly higher heading into the weekend Friday with the Nasdaq posting another record high close.  Shares of Amazon, Microsoft and Alphabet finished out the week with gains of 0.91%, 1.2% and 0.45%, which helped lift the S&P 500 to its best closing mark in four months.  In earnings news JPMorgan reported better-than-expected earnings, while Citigroup and Wells Fargo missed their targets.  The financial sector closed down 0.48%.  Consumer staples and industrials were the leading sectors up 0.63% and 0.59%.  The Dow closed with a gain of 95 points or 0.38%, at 25,019.  The S&P and the Nasdaq added 0.11% and 0.03%.  Crude prices added 0.53% to settle at $70.70 per barrel.  The 10-year Treasury note was off nearly three basis points yielding 2.827%.

-Sonata