Economic Market/Portfolio Happenings
Hello and welcome to this week’s Jones Financial Blog! Our goal at Jones & Associates is to help keep you up to date with interesting current economic/market happenings as well as some proprietary portfolio happenings. Knowledge is power and thought we would share some of ours with you. Enjoy!
All data is for the week ended July 2, 2020. The markets were closed on Friday, July 3 in observance of U.S. Independence Day.
Stock markets were largely positive across the globe as economic data results were better than expected. The S&P 500 was up 1.55% for the week once again by growth stocks. International stocks have continued their rebound as well, with MSCI EAFE (International Developed) climbing 1.62% and MSCI EM (Emerging Markets) up 2.16% (1
The U.S. Aggregate bond market was slightly positive last week as rates were largely stable. The 2-year U.S. Treasury rate decreased by 1 basis point to end the week at 0.16% while the 10-year U.S. Treasury Rate was stable at 0.68%. 30-year mortgages continue their downward rate decline, falling to 3.29% from 4.07% at this time last year. (1)
Oil prices rose following a report by the Energy Information Administration that U.S. crude inventories fell by 7.2 million barrels for the week ended June 26 after three consecutive weeks of increased supply. Analysts polled by S&P Global Platts had forecast an average crude supply decline of 2.7 million barrels. (2)
The U.S. regained 4.8 million jobs in June, far exceeding the 3.7 million consensus expectations, for the largest gain in U.S. history. Also, the numbers for May were revised upward. The unemployment rate fell by 2.2 points to 11.1%. (3)
Pending sales of existing homes rose a surprising 44% in May, the largest monthly increase on record. The jump followed two months of declines brought on by the coronavirus pandemic, with every major region showing gains in the range of 37% to 56%. Additionally, the number of new listings are rising as the economy reopens, aiding home shoppers with inventory choices. (4)
Proprietary portfolio happenings:
Boeing (BA), not currently held in Gradient portfolios, completed certification flight tests for the 737 MAX over the course of three (3) days last week. The FAA will now evaluate data collected and highlight remaining milestones before the aircraft can return to service. (5)
FedEx Corp (FDX), not currently held in Gradient portfolios, reported better than expected revenue and earnings. A surge in pandemic-fueled home deliveries was listed as one of the primary sources of the outperformance. (6)
Did You Know? There’s a tube of wax that keeps your glasses from sliding down your nose. Nerdwax, which was featured on the show Shark Tank, is designed to rub onto your nose or glasses pads like chapstick and hold your frames in place for hours at a time.
Sources: (1) JP Morgan Weekly Market Recap 7-6-20, (2) Energy Information Administration 7-1-20 (3) Bureau of Labor Statistics 7-2-20, (4) National Association of Realtors 6-29-20, (5) NY TImes 7.2.20, (6) CNBC 7.1.20