Price Return Last Week
S&P 500 (0.0%) S&P Mid Cap (0.4%) Russell 2000 (1.4%)
MSCI EAFE (0.3%) MSCI EM 0.2%
10 Yr US Treasury Rate – rose from 3.80% to 3.94%
Source: Refinitiv Eikon
Recent News
Japan Falls – The Nikkei 225, a Japanese stock index, fell over 12% on Monday. It was the largest single-day drop for the index since “Black Monday” in 1987. Shares recovered much of the losses on Tuesday, with the index rising 10% but the index still finished down -2.5% on the week. Some have speculated that the increased volatility results from recent changes at the Bank of Japan where they recently increased their key interest rate from zero to 0.25%. It is the first time in 17 years that the key rate has been above zero.
Source: CNBC.com, The Associated Press
Volatility – Following losses in the Japanese stock market, the S&P 500 started the week with a sharp decline, down over -3% on Monday. The biggest one-day drop for the index in nearly two years. Despite the tough start to the week, the index finished the week down only -0.04%, the smallest weekly drop in over six years.
Source: Morningstar, @JustinWolfers
Earnings Summary – Through Friday, 91% of S&P 500 companies had reported Q2 earnings results. Of those that have reported, 78% had a positive earnings surprise and 59% had a positive revenue surprise. The blended earnings growth rate for companies that have reported is 10.8%, year-over-year. The highest growth rate since Q4 2021. The revenue growth rate thus far is 5.2%, year-over-year. This would be the 15th consecutive quarter with positive year-over-year revenue growth.
Source: FactSet
Mortgage Rates – 30-year fixed-rate conventional mortgage rates fell over a quarter-point from the previous week to an average of 6.47%, according to Freddie Mac’s weekly survey. This represents the lowest average rate in 15 months. However, since the survey is conducted from Thursday through Wednesday and long-term rates climbed higher in the subsequent trading sessions, the interest rate reprieve may be short-lived.
Source: The Wall Street Journal, Refinitiv Eikon
Olympics 2028 – With the Paris Olympics concluding over the weekend, the focus shifts to Los Angeles, the site of the 2028 Olympics. It will be the first time that the Olympics will be held in the United States since 1996. Five new sports will be added to the competition in 2028, including baseball, softball, and flag football.
Source: ESPN.com
Upcoming Events
8/13 – Notable Earnings Reports: Home Depot
8/14 – CPI, Notable Earnings Reports: Cisco
8/15 – Retail Sales, Notable Earnings Reports: Deere & Co, Walmart
8/16 – Consumer Confidence
Source: Refinitiv Eikon
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