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 November 12, 2021
US equity markets cooled off last week after a strong rally. Inflation numbers that came in above expectations added a bit of concern to the markets that elevated prices might be around longer than anticipated. The S&P 500 (US large cap) was down 0.27% and the Russell 2000 (US small cap) was down 1.00%. Internationally, the MSCI EAFE (developed markets) was down 0.34% while the MSCI EM (emerging markets) was the lone positive segment, up 1.71%. (1)
Fixed Income markets continue to grapple with a changing dynamic as it digests the rising inflation numbers and the announced tapering by the Federal Reserve. US Treasuries rates rose during the week, with the 2-year rate increasing by 14 basis points to end the week at 0.53% while the 10-year rate increased 13 basis points to end the week at 1.58%. (1)
Oil prices were slightly down for the week, with West Texas Crude (WTI) ending at $80.79 per barrel. Gold was up 2.2% during the week based on inflation concerns, ending at $1,868.50 per ounce. (2)
The Consumer Price Index (CPI) data showed a 6.2% year over year increase from last October. This is the highest year over year growth in prices since December, 1990. Core inflation, which strips out food and energy, was up 4.6%. Energy, shelter, and vehicle costs were the largest drivers of the higher inflation rate. (3)
Proprietary portfolio happenings:
Company News (4)
Atmos Energy (ATO), a G50 holding, was up 1.53% for the week after reporting earnings that were a slight miss compared to expectations but issued guidance that was in-line with expectations. The company also raised their dividend by 9% to $0.68 per share (current yield: 2.85%). (5)
Mastercard (MA), a Core Select holding, was up 4.22% for the week as investors reacted positively to their investor day recap of the business. Long term guidance for revenue growth in the mid-teens and EPS growth in the low twenties gave investors confidence that positive business trends remain intact. (6)
Did You Know? Grapes catch on fire in the microwave. A March 2019 study published in the Proceedings in the National Academy of Sciences reported the fireball occurs as a result of the loose electrons and ions that form plasma when grapes get hot.
(3) CNBC 11-10-21
(4) Stock prices from Seeking Alpha.com