July 31, 2021 Weekly Market Update. With delta variant unbridled pace of new infections, the Dow Jones Industrial Average slipped -0.36% and S&P 500 declined fractionally -0.37% while the Nasdaq trailed -1.11%. The U.S. Bureau of Economic Analysis (BEA) revised its Gross Domestic Product (GDP) estimate, posting an increase of 6.5% in the second quarter of 2021; slightly above its revised first quarter estimate of 6.3%. The Senate passed a procedural vote on the $550 billion bipartisan infrastructure package.
July 24, 2021 Weekly Market Update. Market trading was marked by choppiness where the week started with the potential for the S&P 500 to break below technical support levels followed by the setting of another new record by week's end: The Nasdaq gained +2.84%, followed by the S&P 500 (+1.96%) and Dow Jones Industrial Average (+1.08%). The leading index rose 0.7% to 115.1 in June, another new record high with eight of the 10 components making positive contributions. So far the earnings season is robust with 86% of the S&P 500 companies beating revenue estimates for Q2 with 88% of the reporting companies beating EPS estimates, which is the highest since FactSet began tracking this metric in 2008.
July 17, 2021 Weekly Market Update. The U.S. equity markets retrenched for the week on investor worries over the potential flattening of the yield curve (slowing economy sign), consumer confident dipping to 80.8 (from 85.5 in June), inflation concerns (CPI rose a whopping 5.4), and Biden’s proposed higher tax changes: For the week, the Dow Jones Industrial Average slipped -0.52% followed by the S&P 500 Index -0.97% and the Nasdaq -1.87%. Further, the Delta coronavirus variant appears to be taking hold with U.S. case counts rising 87% week-over-week. In contrast to these ailments, 90% of S&P 500 companies have beat revenue estimates for Q2 to date, with 85% beating EPS estimates to date (Source: Factset).
July 10, 2021 Weekly Market Update. Though a bumpy ride, the major U.S. equity indexes finished up for the week: the Nasdaq +0.43%, the S&P 500 Index +0.40% and the Dow Jones Industrial Average +0.24%. Market volatility was spurred by the 10-year Treasury dipping to 1.25% from a high of 1.75% back in March. The drop in yields is often an indicator of economic slowdown, and while economic data may have peaked globally with Delta version of the coronavirus shutting down travel in many regions of the world again, there isn’t any hard evidence the U.S. economy is slowing at this stage. Case in point, the bottom-up EPS estimate for the S&P 500 for Q2 increased by +7.3% from March 31 to June 30, which was the largest increase during a quarter since FactSet began tracking this metric in 2002. Further, according to Factset, industry analysts in aggregate predict the S&P 500 will see a price increase of 11.2% over the next twelve months.
July 5, 2021 Weekly Market Update. Strong employment trends continue to take center stage with unemployment dropping to 5.9%; nonfarm payrolls jumped 850k in June, a 150K higher figure than expectations. For the week, the Nasdaq (1.94%) led the major indices followed by the S&P 500 (1.67%) and the Dow Jones Industrial Average (1.02%). U.S. consumer confidence index rose 7.3 points to a 16-month high of 127.3 in May marking a 13-month high while pending home sales rebounded 8.0% to 114.7 in May.
July 24, 2021 Weekly Market Update. Market trading was marked by choppiness where the week started with the potential for the S&P 500 to break below technical support levels followed by the setting of another new record by week's end: The Nasdaq gained +2.84%, followed by the S&P 500 (+1.96%) and Dow Jones Industrial Average (+1.08%). The leading index rose 0.7% to 115.1 in June, another new record high with eight of the 10 components making positive contributions. So far the earnings season is robust with 86% of the S&P 500 companies beating revenue estimates for Q2 with 88% of the reporting companies beating EPS estimates, which is the highest since FactSet began tracking this metric in 2008.
July 17, 2021 Weekly Market Update. The U.S. equity markets retrenched for the week on investor worries over the potential flattening of the yield curve (slowing economy sign), consumer confident dipping to 80.8 (from 85.5 in June), inflation concerns (CPI rose a whopping 5.4), and Biden’s proposed higher tax changes: For the week, the Dow Jones Industrial Average slipped -0.52% followed by the S&P 500 Index -0.97% and the Nasdaq -1.87%. Further, the Delta coronavirus variant appears to be taking hold with U.S. case counts rising 87% week-over-week. In contrast to these ailments, 90% of S&P 500 companies have beat revenue estimates for Q2 to date, with 85% beating EPS estimates to date (Source: Factset).
July 10, 2021 Weekly Market Update. Though a bumpy ride, the major U.S. equity indexes finished up for the week: the Nasdaq +0.43%, the S&P 500 Index +0.40% and the Dow Jones Industrial Average +0.24%. Market volatility was spurred by the 10-year Treasury dipping to 1.25% from a high of 1.75% back in March. The drop in yields is often an indicator of economic slowdown, and while economic data may have peaked globally with Delta version of the coronavirus shutting down travel in many regions of the world again, there isn’t any hard evidence the U.S. economy is slowing at this stage. Case in point, the bottom-up EPS estimate for the S&P 500 for Q2 increased by +7.3% from March 31 to June 30, which was the largest increase during a quarter since FactSet began tracking this metric in 2002. Further, according to Factset, industry analysts in aggregate predict the S&P 500 will see a price increase of 11.2% over the next twelve months.
July 5, 2021 Weekly Market Update. Strong employment trends continue to take center stage with unemployment dropping to 5.9%; nonfarm payrolls jumped 850k in June, a 150K higher figure than expectations. For the week, the Nasdaq (1.94%) led the major indices followed by the S&P 500 (1.67%) and the Dow Jones Industrial Average (1.02%). U.S. consumer confidence index rose 7.3 points to a 16-month high of 127.3 in May marking a 13-month high while pending home sales rebounded 8.0% to 114.7 in May.
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