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 February 4, 2022.

Economic/Market happenings:

Stocks

  • Stocks were positive across the globe on a stronger than expected jobs report combined with earnings that have exceeded expectations. The S&P 500 rose 1.57% last week but remains down 5.47% year to date. Nasdaq stocks rebounded more aggressively, up 2.41% for the week but are still down 9.84% for the year. Small cap and International stocks were also positive for the week, but also remain down for the year. (1)

Fixed Income

  • US Aggregate bond performance was down 0.94% last week as interest rates continued their recent rise. The 10-yr US Treasury rate climbed to 1.93% to end the week, the highest close since December 2019. US Federal Reserve commentary continues to suggest short term rates may begin to rise as soon as March, with the market now expecting five rate hikes this year. (1)

Commodities

  • Oil prices continued to rise, with WTI Crude ending the week at $92.31 per barrel. This is the highest level since 2014. Gold prices ended the week at $1,805/oz and are flat for the year. (2)

​Economic Data

  • Payroll data was surprisingly strong, with non-farm payrolls rising by 467,000 in January. Leisure and hospitality led the gains, while wages also rose by 5.7% year over year. This level of strength was a surprise as recent commentary by the White House suggested numbers may be negatively impacted by pandemic related pauses in hiring. (3)

Proprietary portfolio happenings:

Company News (4)

  • United Parcel Service (UPS), a G50 holding, reported an earnings beat and provided guidance that exceeded expectations. The stock was up 13% for the week. (5)

  • Snap Inc (SNAP) (6) and Amazon (AMZN) (7), held in the G33 and Contrarian Choice portfolios, significantly rebounded off of recent weakness in the stocks. Both companies reported earnings that beat expectations. Shares of SNAP were up 28% for the week while Amazon rose by 9%.

 

Did You Know? That an astronaut was allergic to the moon? During the Apollo 17 mission, astronaut Harrison Schmitt found out that he had a severe reaction to moon dust.




Sources:

(1) JP Morgan Weekly Market Recap 02-07-22

(2) Stockcharts.com

(3) CNBC 2.4.22

(4) Stock prices from Stockcharts.com

(5) UPS Earnings 2.1.22

(6) Snap Inc Earnings 2.3.22

(7) Amazon Earnings 2.3.22

Herstle Jones, LUTCF, CLTC President & Founder

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

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