|Weekly and Year-To-Date Performance|
|INDEX||12/31/2020||07/09/2021||07/16/2021||% Change Week||% Change YTD|
|Dow Jones Industrial Average||30,606.48||34,870.16||34,687.85||-0.52%||13.33%|
|Russell Mid-Cap Index||2,743.05||3,191.90||3,101.67||-2.83%||13.07%|
|Russell Small-Cap Index||1,974.85||2,280.00||2,162.93||-5.13%||9.52%|
July 16th, 2021
Dear Friends –
The equity markets finished the week to the downside as inflation concerns halted the three-week winning streaks for the major indexes. For the week the Dow, S&P and the Nasdaq were off 0.52%, 0.97% and 1.80% respectively. The Russell Mid-Cap, Small-Cap and MSI EAFE indexes fell 2.8%, 5.1% and 1.6% respectively. Year-to-date the six indexes are up 13.3%, 15.2%, 12%, 13.1%, 9.5% and 6.5% respectively.
Stocks opened the week to the upside Monday on rising optimism over the start of second quarter earnings season. Financials led the S&P to another record high ahead of reports from some of the biggest names in the sector due out later in the week. Nine of the 11 S&P sectors finished higher led by financials, communication services and real estate with gains of 0.96%, 0.9% and 0.86%. The Dow closed up 126 points or 0.36%, at 34,996. The S&P and the Nasdaq added 0.35% and 0.21%. Treasury yields closed with little change with the 10-year note up less than one basis point yielding 1.36%. Crude oil prices finished the day down 0.6% at $74.10 per barrel.
The markets finished with modest losses Tuesday following another hot inflation reading. Prices at the consumer level (CPI) rose 5.4% from a year ago, well ahead of the consensus estimates of a 5% gain. Interest rates moved higher on the news with the 10-year Treasury note closing up almost five basis points yielding 1.412%. Ten of the 11 S&P sectors finished lower led by real estate, consumer discretionary and financials with losses of 1.3%, 1.18% and 1.06%. The day’s earnings news was positive as JPMorgan, Goldman Sachs and Pepsi reported better-than-expected results. Shares of Pepsi moved higher adding over 2% while the banks fell. The Dow closed down 107 points or 0.31%, at 34,889. The S&P and the Nasdaq were off 0.35% and 0.38%. Crude oil prices moved higher closing just over $75 per barrel.
Stocks ended mixed Wednesday as the markets digested comments from Fed Chair Powell that indicated the Fed is committed to maintaining its accommodative stance. Powell’s comments came on the heels of the hot CPI figures Tuesday and new data out during the session showing prices at the producer level coming in above expectations as well. Six of the 11 S&P sectors finished lower led by energy, financials, and healthcare with losses of 2.94%, 0.49% and 0.2%. Consumer staples, real estate and utilities led on the upside. Shares of Apple led the tech sector higher rising 2.4% after reports surfaced that the company has asked suppliers to increase production of upcoming iPhones by 20%. The Dow gained 44 points or 0.13%, to finish at 34,933. The S&P added 0.12% and the Nasdaq was off 0.22%. Treasury yields moved lower with the 10-year note closing down six basis points yielding 1.35%. Crude prices fell 2.8% on the news that Saudi Arabia and the U.A.E reached a deal to boost output to meet the rising demand globally as economies continue to reopen.
The markets finished with modest losses Thursday as investors continued to digest the latest inflation data and comments from the Fed. In economic news weekly jobless claims fell to the lowest levels in 16 months. Six of the 11 S&P sectors finished higher led by utilities, consumer staples and financials with gains of 1.2%, 0.42% and 0.38%. Energy and technology led on the downside. The Dow closed down 115 points or 0.33%, at 34,987. The S&P and the Nasdaq were off 0.3% and 0.4%. Interest rates moved lower again with the 10-year Treasury note closing down six basis points at 1.29%. Crude oil prices were off 0.2% at $71.65 per barrel.
Stocks fell heading into the weekend Friday as inflation concerns weighed on investors. The Dow closed near the lows of the session to snap a three-week winning streak. Positive news on earnings and retail sales was overshadowed by a weaker-than-expected reading on consumer sentiment and the lingering concerns over rising prices. The major indexes gave up early gains after the consumer sentiment numbers came in at 80.8 for the first half of the month versus 85.5 last month. Seven of the 11 S&P sectors finished lower led by energy, materials and financials with losses of 2.77%, 1.53% and 1.34%. Utilities and healthcare led on the upside. The Dow finished the session down 300 points or 0.86%, at 34,688. The S&P and the Nasdaq were off 0.75% and 0.8%. The 10-year Treasury note finished nearly unchanged yielding 1.3%. Crude oil prices closed up 0.5%.