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 23, 2021
The US market rallied last week despite the concerns regarding rising cases of COVID due to the Delta variant. The S&P 500 was up 1.97% while small cap stocks (Russell 2000) were up 2.15%. International stocks were more mixed, as the international developed markets (MSCI EAFE) were up 0.21% but emerging markets (MSCI EM) were down 2.08%. (1)
The 10-year US Treasury, while volatile intra-period, was relatively unchanged over the week, closing down 1 basis point at 1.30%. (1) The Federal Reserve begins its latest 2-day meeting on Tuesday with a monetary policy decision and press conference from Fed Chairman Jerome Powell on Wednesday afternoon. (2)
Oil prices rose last week after a recent decline and WTI Crude ended the week at $72.07 per barrel. (3) Gold prices were slightly down last week and are now down 4.9% for the year despite rising inflation during the year. (3)
Flash PMI (Purchasing Manager Index), an estimator of growth in economic data, reflected a continuing strong economy, with both services and manufacturing remaining solidly in the growth range. (1) As stated prior, Fed Chairman Jerome Powell is set to discuss Fed actions and the overall economy this week and investors will be looking for guidance regarding any potential change in upcoming policy.
Proprietary portfolio happenings:
Company News (4)
Snapchat, a G33 holding, rose significantly after an earnings report that was materially ahead of expectations. Per the earnings release, the company grew both revenue and daily active users at their highest rates in the past four years. (5) The stock was up 31.46% for the week.
Celanese, a G50 holding, reported earnings last week with numbers exceeding guidance and consensus expectations. The company acknowledged sourcing and supply chain constraints, but also consumer demand remains elevated. (6) The stock rose by 0.76% for the week.
Did You Know? Dolphins sleep with one eye open. Because they must be constantly on the lookout for predators, dolphins can maintain partial consciousness even as part of their brain sleeps. Researchers have tested whether this “half sleep” effects alertness and found that, even after five days, the dolphins remained as alter and perceptive as ever.
(4) All weekly changes in company stock prices: Stockcharts.com