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 January 28, 2022.

Economic/Market happenings:

Stocks

  • US large cap stocks staged a modest recovery last week from the prior week, with the S&P 500 adding 0.79% and the NASDAQ edging up 0.02%. Small and mid-cap stocks, represented by the Russell 2000, lost 0.97%. Overseas markets were down 3.61% for the international developed index (MSCI EAFE) as the emerging markets index (MSCI EM) declined 4.26%. (1)

Fixed Income

  • The Federal Reserve held interest rates steady at last week’s meeting. (2) In the conference call that followed, the Fed chair did not reject the idea that the central bank could hike rates at each of its four meetings this year, speaking of the need to be nimble. He also said there was room to raise rates without hurting jobs. (3)

Commodities

  • Energy prices continued to climb on geopolitical worries for supply and the prospect that the Omicron variant will have a lighter than anticipated drag on demand. The price of West Texas crude oil rose 2.0% last week to $86.82 per barrel. Year to date, it is up 15.4%. (4)

​Economic Data

  • The US economy grew at a 6.9% annual rate last quarter, well ahead of consensus expectations for 5.5% growth. This marked a dramatic acceleration from the prior quarter. For the full year, gross domestic product grew by 5.7%, the fastest pace in nearly 40 years. The fourth quarter growth was driven by increased consumer spending, a dramatic rebuilding of inventories and a sharp rise in exports. Core inflation (PCE Index) was 4.9% for the quarter and 3.3% for the full year. (5)

Proprietary portfolio happenings:

Company News (6)

  • American Express Co. (AXP), a Core Select holding, reported quarterly results that beat expectations and a plan to increase its dividend by 20%. Shares rose 11.54% for the week. (7)

  • Apple Inc. (AAPL), a Core Select and G33 holding, reported revenue and earnings growth that firmly beat expectations. Importantly, management also said that supply constraints are easing off. Shares rose 4.88%. (8)

  • Blackstone Inc. (BX), a recent addition to the G50 strategy, shares rose 13.21% after reporting revenue and earnings that expected expectations. The alternative investment management company also noted that its assets under management rose 42% compared to the previous year. (9)

 

Did You Know? NASA uses Taco Bell tortillas for space missions. Bread has too many crumbs so NASA uses tortillas for sandwiches and started making space tortillas. Taco Bell made a tortilla in the 90’s with a nine month shelf life, so NASA started using those.




Sources:

(1) JP Morgan Weekly Market Recap 1-31-22

(2) Board of Governors of the Federal Reserve System 1-26-22

(3) FOMC Press Conference 1-26-22

(4) Oilprice.com

(5) Bureau of Economic Analysis 1-27-22

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

(7) American Express press release 1-25-22

(8) Apple Inc. press release 1-27-22

(9) Blackstone Inc. press release 1-27-22

Herstle Jones, LUTCF, CLTC President & Founder

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

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