US markets rallied on the notion that the economy may be able to execute a soft landing as inflation wanes and employment continues to hold up. Inflation data reported during the week showed moderating prices at the consumer and wholesale levels. Q2 earnings season kicked off with better-than-expected earnings from financials: JP Morgan, Citibank, and Wells Fargo. United Healthcare, Delta Airlines, and Pepsi also beat their earnings expectations. China announced new stimulus efforts, while Sweden got the nod to become a NATO member.
A broad-based rally saw the S&P 500 gain 2.4% on the week. The Dow added 2.3%, the NASDAQ advanced 3.3%, and the Russell 2000 jumped 3.6%. US Treasuries rallied on the weaker inflation data, with the 2-year yield coming down twenty-one basis points to 4.73%. The 10-year yield fell by twenty-three basis points to close at 3.82%. A perceived divergence in the path of central bank policies hit the US dollar index, which fell by 2.4% over the week. Fed rhetoric during the week was skewed to more tightening, and while Fed Fund Futures project a near certainly of a July 25 basis point hike, the projections of another hike fell on this week’s pricing data.
Oil prices increased by 2% or $1.55, with WTI closing at $75.40 a barrel. Gold prices jumped by 1.5% or $30.7 to 1964.40 an Oz. Copper prices increased by 4% to close at 3.93 a Lb.
The Consumer Price Index highlighted economic data for the week. The headline CPI and Core CPI for June came in at 0.1% less than the expected 0.2%. On a year-over-year basis, CPI came in at 3%, down from 4% in May. The Core year-over-year reading decreased to 4.8% from 5.3% in May. Wholesale prices tracked by the Producer Price Index also saw prices moderating. Headline PPI came in at 0.1% versus the expected 0.2% and was up just 0.1% on a year-over-year basis, down from May’s increase of 1%. Core PPI increased by 0.1% in June and fell to 2.4% from 2.6% in May year-over-year. Export prices fell by 0.9%. Initial Unemployment Claims came in below estimates at 237k, while Continuing Claims came in at 1729k, up slightly from the prior week’s reading of 1718k. The University of Michigan’s preliminary read on the July Consumer Sentiment came in better-than-expected at 72.6 versus the consensus expectation of 66.
Investment advisory services offered through Foundations Investment Advisors, LLC (“FIA”), an SEC registered investment adviser. FIA’s Darren Leavitt authors this commentary which may include information and statistical data obtained from and/or prepared by third party sources that FIA deems reliable but in no way does FIA guarantee the accuracy or completeness. All such third party information and statistical data contained herein is subject to change without notice. Nothing herein constitutes legal, tax or investment advice or any recommendation that any security, portfolio of securities, or investment strategy is suitable for any specific person. Personal investment advice can only be rendered after the engagement of FIA for services, execution of required documentation, including receipt of required disclosures. All investments involve risk and past performance is no guarantee of future results. For registration information on FIA, please go to https://adviserinfo.sec.gov/ and search by our firm name or by our CRD #175083. Advisory services are only offered to clients or prospective clients where FIA and its representatives are properly licensed or exempted.
Specializing in private wealth management, we provide education, guidance, and strategies to help you achieve a tax-efficient retirement income.
Specializing in private wealth management, we provide education, guidance, and strategies to help you achieve a tax-efficient retirement income.
Investment advisory services offered through Donato Wealth Management, PLLC, dba Empower Wealth Management and Empower Wealth & Tax (“Empower Wealth Management” or “EWM”),
an SEC registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
The information presented is believed to be current. It should not be viewed as personalized investment advice. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. You should consult with a professional adviser before implementing any strategies discussed. Content should not be viewed as an offer to buy or sell any of the securities mentioned, or as legal or tax advice. You should always consult an attorney or tax professional regarding your specific legal or tax situation. Personal investment advice can only be rendered after the engagement of EWM, execution of required documentation, and receipt of required disclosures. All investment and insurance strategies have the potential for profit or loss. Asset allocation and diversification will not necessarily improve an investor’s returns and cannot eliminate the risk of investment losses. Past performance is no guarantee of future results. For more information, please go to https://adviserinfo.sec.gov and search by our firm name or by our CRD #305031.
Insurance products and tax services are offered through Senior Tax and Insurance Advisors, PLLC, dba Empower Wealth Group (“Empower Wealth Group” or “EWG”). Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products. They do not in any way refer to investment advisory products offered through EWM. Rates and guarantees provided by insurance products and annuities are subject to the financial strength of the issuing insurance company; not guaranteed by any bank or the FDIC. EWG is not affiliated with or endorsed by the U.S. Government, Social Security Administration, nor the federal Medicare program. You may be contacted by a licensed insurance agent. Calling the number above will direct you to a licensed insurance agent. EWG may not offer every plan available in your area. Any information provided is limited to plans available in your area. Please contact Medicare.gov or 1-800-MEDICARE.
EWM and EWG are both affiliated companies of Empower Wealth, LLC (“Empower”). Investment adviser representatives of EWM may have a financial incentive to recommend tax and insurance products and/or services offered through EWG which presents a conflict of interest. This conflict is addressed by EWM’s adoption of its Code of Ethics, which requires that all EWM’s Associated Persons place the interest of clients ahead of their own. Clients of EWM are also free to choose their own tax and/or insurance professionals and are under no obligation to utilize the services offered through any related entities or persons associated with Empower.
Strategic Partners listed on this page are not employees of EWM and are not affiliated through common ownership.
We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.
© Empower Wealth Management All Rights Reserved.
