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 September 10, 2021

Economic/Market happenings:

Stocks

  • Equities declined across all major indices over the past week as economists across Wall Street have sharply reduced third-quarter economic growth forecasts. (1) The S&P 500 declined 1.68%, the Russell 2000 fell 2.80%, the NASDAQ dropped 1.61%, the international developed markets (MSCI: EAFE) was down 0.30% and emerging markets (MSCI: EM) was reduced by 0.46%. Large cap stocks outperformed mid- and small-cap stocks. By sector, consumer discretionary and consumer staples were the best performers (although both declined) while real estate and health care were the laggards. (2)

Fixed Income

  • Government-issued bonds with shorter term maturities declined in value as interest rates edged up, while those with longer term maturities were unchanged. The yield on the benchmark 10-year treasuries rose 2 basis points to 1.35%. (3)

Commodities

  • Oil prices traded over $70 on Friday before settling back to close at $69.72 per barrel for West Texas crude as U.S. supply concerns were elevated. (4) Reports have surfaced that the damage from Hurricane Ida affected production more than expected and Russia is struggling to meet its OPEC+ quotas. Traders are also noting rising European energy prices by strong demand and depleting inventories. (5)

​Economic Data

  • Inflation for manufactured goods (PPI) was 0.7% in August vs. July, slightly ahead of consensus expectations and an 8.3% year-over year rate. Manufacturers are still stressed with bottlenecks and shortages. The hike in wholesale inflation was led by a surge in food prices and the cost of transportation/warehousing. (6)

Proprietary portfolio happenings:

Company News (7)

  • AeroVironment Inc. (AVAV), a G33 holding, reported quarterly revenue and earnings that were below expectations. Shares of this maker of robotic systems and services for government agencies dropped 9.64% for the week. (8)

  • Global Payments Network (GPN), a G33, Contrarian Choice and Core Select holding, rose 5.44% as management hosted an analyst day in which it reiterated its 20% EPS growth forecast. (9)

Did You Know? A turkey shortage is unfolding that has food retailers scrambling to get ready for the Thanksgiving holiday. mainly affecting fresh turkeys and birds under 16 pounds, which tend to be the most popular. This is due to rising prices for corn, the largest cost of raising turkeys. Farmers dramatically pulled back on their supply for fear that their investment would not pay off. However, 20+ pound turkeys are expected to be plentiful due to earlier production and freezing.



Sources:

(1) Barron’s: Growth Slowdown 9-13-2021

(2) JP Morgan Weekly Market Recap 9-13-21

(3) US Treasury

(4) Oilprice.com

(5) Barron’s: Oil Prices Are Rising 9-13-21

(6) Department of Labor PPI 9-10-21

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

(8) AeroVironment press release 9/8/21

(9) Global Payments presentation 9-8-21



Herstle Jones, LUTCF, CLTC President & Founder

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

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