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 9, 2021. The trading week was shortened by the observance of Independence Day on Monday the 5th.

Economic/Market happenings:

Stocks

  • The broad US indices were mostly positive last week, with the S&P 500 rising 0.42% and the Nasdaq up 0.43% to record highs although the Russell 2000 declined by 1.11%. Overseas markets were down as the developed markets (MSCI EAFE) eased by 0.07% and the emerging markets (MSCI EM) dropped 2.58% after China revealed slower manufacturing growth. See Economic Data below. Within the US growth outperformed value and large caps outperformed mid- and small-caps. Real estate and consumer discretionary were the leading sectors in the US while energy and financials were the laggards. (1)

Fixed Income

  • Interest rates declined by 7 basis points on the 10-year and 20-year US treasuries while the 2-year yield eased just 1 basis point, flattening the yield curve. The 10-year yield nearly touched 1.25% intraday mid-week before finishing the week at 1.37%, back to the rate of late February. (2)

Commodities

  • Oil prices dropped 4.0% during the week from last Friday's close on an outlook for lower demand after Japan declared a new emergency related to the Delta variant of the Covid virus (banning spectators at Olympics events in and around Tokyo). (3) The price of West Texas crude ended the week at $74.56 per barrel. (4) Oil demand went from roughly 100 million barrels a day to 80 million in the depths of last year’s Covid-19 induced recession. Oil demand is back to about 94 million barrels a day. (5)

​Economic Data

  • China has been troubled by mounting supply delays. China’s manufacturing index declined in June, on softer output growth— its weakest level since March 2020. (6) China, once the early leader in the post-COVID-19 recovery, is now seeing its growth moderate and is passing the baton to the eurozone where manufacturing and services rose last month to nearly an all-time high. (7)

Proprietary portfolio happenings:

Company News (8)

  • Amazon (AMZN), a Core Select and G33 holding, rose 5.93% last week as a new CEO took on his role from founder Jeff Bezos and investors appeared to be rotating back into large cap tech stocks. (9)

  • Palo Alto Networks (PANW), a Core Select and G33 holding, gained 4.67% last week after a ransomware attack on up to 1,500 organizations drove investors’ interest in cybersecurity stocks. (10)

Did You Know? The phrase "show your true colors" was coined centuries ago when ships would fly false national flags to get close to enemies and then switch to their "true" colors just before attacking.


Sources:

(1) JP Morgan Weekly Market Recap 7-12-21

(2) US Treasury

(3) “The Mainichi, “Tokyo enters 4th Covid-19 Emergency” 7-12-21

(4) Oilprice.com

(5) International Energy Agency

(6) National Bureau of Statistics of China Purchasing Managers Index 7-1-21

(7) IHS Markit Eurozone Composite PMI 7-5-21

(8) All weekly changes in company stock prices: Yahoo Finance

(9) TechCrunch, “Three Analysts Weigh In: What are Andy Jassy’s Top Priorities as Amazon’s New CEO?”

(10) Reuters, “Up to 1,500 businesses affected by Ransomware Attack” 7-6-21



Herstle Jones, LUTCF, CLTC President & Founder

With over 20 years of experience in the financial services industry,

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