MARKET STATISTICS
Weekly and Year-To-Date Performance
INDEX 12/31/2018 07/05/2019 07/12/2019 % Change Week % Change YTD
 Dow Jones Industrial Average 23,327.46 26,922.12 27,332.03  1.52%  17.71%
 S&P 500 2,506.85 2,990.41  3,013.77  0.78%  20.22%
 Nasdaq Composite 6,635.28 8,155.42  8,239.63  1.03%  24.18%
 Russell Mid-Cap Index 1,857.30 2,264.45  2,278.40  0.62%  22.67%
 Russell Small-Cap Index  1,348.56 1,574.26  1,571.67  -0.16%  16.54%

 

July 12th, 2019

Dear Friends –

The equity markets finished the week mostly higher with the headline indexes closing at record highs as the Fed looks set to cut rates later this month. For the week the Dow Jones Industrials, S&P 500 and the Nasdaq gained 1.52%, 0.78% and 1.03% respectively.  The Russell Mid-Cap was up 0.62% and the Russell Small-Cap and MSCI EAFE indexes were off 0.16% and 0.56%.

Stocks opened the week to the downside Monday as weakness in tech weighed on the major indexes. Shares of Apple fell 2.06% following an analyst downgrade citing disappointing iPhone sales.  The technology sector, which is up almost 28% on the year, closed down 0.73% to open the week.  Five of the 11 S&P sectors finished with gains led by real estate and consumer discretionary which closed up 0.37% and 0.19%.  With earnings season set to kick off and a Fed decision looming at the end of the month, much of the week’s focus will be on Fed Chairman Powell’s testimony in front of Congress on Wednesday.  The Dow closed down 116 points or 0.43%, at 26,806.  The S&P and the Nasdaq were off 0.48% and 0.78%.  Crude prices ticked higher by 0.3% to settle at $57.66 per barrel.  The benchmark 10-year Treasury note fell two basis points to close yielding 2.02%.

The markets closed mixed but with little change Tuesday ahead of Fed Chair Powell’s testimony. The blue-chip Dow lagged behind the broader markets as shares of 3M, Verizon, Dow and Procter & Gamble all fell over 1%.  The technology sector led the S&P and the Nasdaq higher as shares of Amazon, Facebook and Netflix gained 1.84%, 1.76% and 0.76%.  The Dow was off 23 points or 0.08%, at 26,783.  The S&P and the Nasdaq gained 0.12% and 0.54%.  Crude prices rose five cents during the session then accelerated in hours trading with a gain of over 1.3% as supply cuts are beginning to have an impact.  The 10-year note gained nearly four basis points to settle yielding 2.072%.

Stocks moved higher Wednesday following comments from Jerome Powell that appeared to signal the Fed is ready to cut rates. The major indexes shot higher at the open on the news but finished well off the highs of the day.  Much of the chairman’s comments focused on increasing headwinds for the economy despite solid job growth and relatively tame inflationary data.  Among those challenges is slower economic growth overseas, which they fear could spill over and weigh on domestic growth.  The Dow closed up 77 points or 0.29%, at 26,860.  The S&P and the Nasdaq added 0.45% and 0.75%.  Crude prices rose 2.8% as the first big storm of the season is threatening oil production in the Gulf of Mexico.

The markets closed mixed Thursday in a session that saw the Dow make a solid move higher to close above the 27,000 mark for the first time. Weakness in technology weighed on the S&P and pulled the Nasdaq lower on the day.  Shares of UnitedHealth climbed over 5% to lead the Dow higher after the White House abandoned a plan to eliminate drug rebates which was part of a proposal aimed at lowering drug prices.  Health insurers rose across the board on the news.  In economic news the consumer price index rose unexpectedly last month pushing the core CPI number to its biggest gains in 18 months.  The Dow closed up 228 points or 0.85%, at 27,088.  The S&P added 0.23% and the Nasdaq fell 0.08%.  The benchmark 10-year Treasury note rose eight basis points to settle at 2.143% following the surprising rise in the CPI.

Stocks made solid gains heading into the weekend Friday as the major indexes all reached record highs. Eight of the 11 S&P sectors finished with gains led by industrials, consumer discretionary and materials.  Healthcare, utilities and real estate were the lone sectors to close lower.  A general sense of relief has lead stocks higher following Fed Chair Powell’s comments Wednesday.  The focus will shift next week however, as earnings season kicks off in earnest, with several of the major banks set to report.  The Dow finished up 244 points or 0.90%, at 27,332.  The S&P and the Nasdaq added 0.46% and 0.53%.  Crude prices rose 0.13% and finished the week with a gain of nearly 5%.  The 10-year Treasury note ticked lower to close yielding 2.113%.

-Sonata