Price Return Last Week
S&P 500 (2.0%) S&P Mid Cap (0.2%) Russell 2000 +1.7%
MSCI EAFE (2.4%) MSCI EM (3.0%)
10 Yr US Treasury Rate – rose from 4.19% to 4.24%
Source: Refinitiv Eikon
Recent News
Biden Drops Out – Early Sunday afternoon, President Biden released a letter announcing that he will not seek reelection. Shortly after his announcement he endorsed Vice President Kamala Harris. The Democratic National Convention is set to begin on August 19, where a formal nomination will be made.
Source: Associated Press, CBS News
Semi Underperformance – The iShares Semiconductor ETF declined over 7% on Wednesday. This represented the worst performing day for the fund since March 2020. The fall came after remarks from former President Trump to Bloomberg Businessweek that Taiwan should pay the U.S. for its defense and the U.S. should consider restricting exports of semiconductor technology to China.
Source: Bespoke Research, Refinitiv Eikon, Thomson Reuters
ECB Meeting – The European Central Bank decided to keep interest rates steady after cutting rates by a quarter-point last month. While the ECB lowered rates before the Fed, markets are projecting six quarter-point rate cuts by the Fed over the next year and just four quarter-point cuts from the ECB.
Source: The Wall Street Journal
Retail Sales – June: 0.0% (Reuters Poll est. -0.3%) May: 0.3%
June sales were higher than expected and May sales were revised upward. On a year-over-year basis, retail sales have increased 2.3%. Motor vehicle & parts dealer sales declined 2.0% month-over-month and gas station sales fell 3% versus the previous month. Absent these two segments, retail sales climbed 0.8% compared to May.
Source: Refinitiv Eikon, U.S. Census Bureau
1968 Democratic Convention – Most claim that the birth of the modern presidential nomination process took place in 1968 after a turbulent Democratic Convention in Chicago that nominated Vice President Hubert Humphrey despite not winning a single primary. Going forward, reforms were made from Democrats and Republicans that required state parties to have open procedures for selecting delegates instead of allowing party leaders to pick candidates in secret.
Source: Vox.com
Upcoming Events
7/22 – Notable Earnings Reports: Nucor
7/23 – Notable Earnings Reports: Danaher, GE, Kimberly-Clark, Coca-Cola, Lockheed Martin, UPS, GM, Chubb, Visa, Tesla, Alphabet
7/24 – Notable Earnings Reports: Amphenol, Nextera Energy, AT&T, Thermo Fisher Scientific, Chipotle, IBM, ServiceNow, Ford, KLA
7/25 – GDP, Durable Goods, Notable Earnings Reports: Masco, Union Pacific, Honeywell, CBRE, Southwest Airlines, Keurig Dr. Pepper, Northrop Grumman, Norfolk Southern, Tractor Supply, RTX, Valero, Dow, American Airlines, AbbVie
7/26 – PCE, Notable Earnings Reports: Aon, Bristol-Myers Squibb, Colgate-Palmolive, 3M
Source: Refinitiv Eikon
Comments