Was last week a one-off or the start of a sea-change?
There have not been many weeks in 2024 when the Nasdaq has underperformed the other major stock indexes.
The major economic news last week was the headline Consumer Price Index (CPI) fell .01 last month.
The tame CPI report impacted investment returns last week as the Dow increased 2.03%, and the S&P 500 1.45%. The small-cap Russell 2000 index surged 6.18% pushing the index in the positive for the year. The lagging domestic index was the Nasdaq, moving higher by 1.02%.
Over the pond, foreign stocks increased 2.07% and emerging markets 2.21%.
Bond yields on the heels of the tame CPI report, moved lower with the 10-year US Treasury finishing the week with a yield of 4.186%.
Economic/Corporate Info this week!
Will the Fed start to cut rates in one of the 2 meetings prior to the Presidential Election? I’m thinking yes if the inflation data continues the recent trend. We will see!
This week could be telling as we will hear Junes retail sales report. The report will shed light on the current willingness of consumers to spend. Keep in mind, the consumer represents 70% of the economy. In addition, we’ll hear reports on housing starts, building permits and the housing market index.
Corporate profit reports kick into gear, as we’ll hear from Goldman Sachs, Morgan Stanley, United Healthcare, United Airlines, J&J, Netflix, D.R. Horton, Taiwan Semi, Amex and more.
Republican Convention
I typically would not mention, this week is the start of the Republican Convention. However to not comment considering the assassination attempt on former President Trump would be improper.
It was awful watching candidate Trump shot. It should not matter what side of the isle you sit; this was a sad weekend for America.
The divide in our country is way out of hand. Both political parties continue to twist the truths however they envision in their best interest, regardless of reality.
Can you imagine if politicians were held to the fiduciary standards as many other professionals? Hmmmm!
The United States has a lot to work on, from energy, immigration, social security, healthcare, our national debt and more. I can only hope and pray our politicians will change and truly do what they are elected and paid to do. Act in our best interest. I am not holding my breath!
Portfolio Positioning
With the uncertainty of the direction of interest rates, inflation, corporate profits, and the election, moving forward with a well-allocated, diversified portfolio may prove to be increasingly advantageous going forward.
Speculation on the next 12 months of market leadership is just that, speculation!
Stay diversified and well-allocated based on the specifics of your financial situation.
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As always, thank you for reading.
