Price Return Last Week
S&P 500 +3.9% S&P Mid Cap +2.6% Russell 2000 +2.9%
MSCI EAFE +4.0% MSCI EM +2.8%
10 Yr US Treasury Rate – fell from 3.94% to 3.89%
Source: Refinitiv Eikon
Recent News
Core CPI – July: 0.2% (Reuters Poll est. 0.2%) June: 0.1%
The core inflation report was in-line with expectations but slightly higher than the previous month. This can mainly be attributed to shelter costs, which rose 0.4% over the previous month compared to June when they had only increased 0.2%. Partially offsetting this increase were vehicle and apparel prices, which declined month-over-month. Following the report, the odds of an interest rate cut in September remain a near certainty with the odds of a 50 basis point cut at 46%.
Source: Refinitiv Eikon, U.S. Bureau of Labor Statistics
Retail Sales – July: 1.0% (Reuters Poll est. 0.3%) June: -0.2%
While June retail sales were revised lower, from 0.0% to -0.2%, July retail sales surprised to the upside driven by strong spending at car dealerships, grocery stores, and on electronics. Following the upbeat retail sales report, the S&P 500 rose approximately 1.7% and Goldman Sachs lowered the probability of a US recession in the next year to 20% from 25%.
Source: Refinitiv Eikon, The Wall Street Journal, Bloomberg
New Real Estate Agent Rules Begin – Following a legal settlement earlier this year with the National Association of Realtors (NAR), new rules over real estate commissions took effect on August 17. The new rules will allow buyers to negotiate the commission their agent receives directly. Who pays the agent can be negotiated and the buyer can still ask the seller to cover the commission cost. Buyers retain the ability to not use an agent at all and save on commissions.
Source: The Wall Street Journal
College Football Kicks Off – The college football season officially begins on Saturday, August 24 with Florida State facing Georgia Tech in Dublin, Ireland. The 2024 season will be the first year in which 12 teams will make the College Football Playoff. The top four ranked teams at the end of the season will receive a first-round bye, unless Notre Dame is in the top four. Notre Dame is ineligible for a bye as an independent school. The championship game will be played on January 20, the latest ever for the NCAA.
Source: Nexstar Media Inc.
Upcoming Events
8/19 – Notable Earnings Reports: Estee Lauder, Palo Alto Networks
8/20 – Notable Earnings Reports: Lowe’s, Medtronic
8/21 – Fed Minutes, Notable Earnings Reports: Target, TJX, Snowflake, Zoom
8/22 – Existing Home Sales, Notable Earnings Reports: Intuit, Ross Stores, Workday
8/23 – Fed Chair Jerome Powell Jackson Hole Speech, New Home Sales
Source: Refinitiv Eikon
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