Weekly Market Commentary, July 10, 2018

July 10, 2018  | By Robare & Jones

The Markets

The positive U.S. jobs report released Friday contributed to a strong week for global stocks and bonds. The S&P 500 soared 1.5 percent, the MSCI ACWI climbed 0.9 percent, and the Bloomberg BarCap Aggregate Bond Index rose 0.2 percent.

 

Data as of 07/06/2018 1-week YTD 1-Year 3-Year 5-Year 10-Year
Standard & Poor's 500 (Domestic Stocks) 1.5% 3.2% 14.5% 10.1% 11.0% 8.2%
Dow Jones Global ex-U.S. 0.0 -4.9 5.6 3.5 4.0 0.8
10-year Treasury Note (Yield Only) 2.8 NA 2.4 2.3 2.6 3.9
Gold (per ounce) 0.4 -3.2 2.5 2.5 0.3 3.2
Bloomberg Commodity Index -1.4 -2.2 4.6 -4.5 -7.5 -9.4
DJ Equity All REIT Total Return Index 1.9 3.2 9.0 9.2 9.3 8.9

S&P 500, Gold, Bloomberg Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; the DJ Equity All REIT Total Return Index does include reinvested dividends and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods.

Sources: Yahoo! Finance, Barron’s, djindexes.com, London Bullion Market Association.

Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable.

Download Market Data Table

Economic News

The Labor Department’s monthly jobs report provides an early indication of economic strength and inflationary pressures, and the June report showed very positive signs. The economy added 213,000 nonfarm payroll jobs, and the unemployment rate inched higher to 4 percent. The rise in unemployment was caused by an increase in labor force participation, not job loss, so that was taken as a good sign. Given the robust labor market, wage gains were one point below expectations at 2.7 percent. The pace of wage growth appears manageable, which is significant because a jump in the average hourly earnings triggered February’s correction.

Fun Story

A Grandma Wears a Panama Shirt for Two Decades to Celebrate 4th of July

The World Cup is a time when people around the world come together to watch amazing athletes play the world’s most popular sport. It’s also a time when viewers get to know flags of countries around the world. For one grandmother wearing a red, blue and white, star-draped shirt to celebrate Independence Day, the World Cup made her realize that festive shirt is the flag of Panama. She’s been wearing it for 25 years.

 

Newsletter Sources

http://www.aaii.com/sentimentsurvey (or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/07-09-18_AAII_Sentiment_Survey-Results_for_Week_Ending_7-4-2018-Footnote_1.pdf)

http://www.aaii.com/sentimentsurvey/sent_results (or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/07-09-18_AAII_Sentiment_Survey-Past_Results-Footnote_2.pdf)

https://www.nytimes.com/2018/04/02/business/stock-markets-technology-trade.html

https://www.cnbc.com/2018/06/08/gdp-for-second-quarter-on-track-to-double-2018-full-year-pace-of-2017.html

https://insight.factset.com/earnings-insight-q118-by-the-numbers-infographic

https://www.npr.org/sections/thetwo-way/2017/06/01/531048986/so-what-exactly-is-in-the-paris-climate-accord

https://www.iea.org/geco/emissions/

https://www.scientificamerican.com/article/global-co2-emissions-rise-after-paris-climate-agreement-signed/

https://www.washingtonpost.com/news/energy-environment/wp/2018/06/01/trump-withdrew-from-the-paris-climate-plan-a-year-ago-heres-what-has-changed/?noredirect=on&utm_term=.c673c6f445ec

https://www.economist.com/business/2018/07/05/shortages-of-carbon-dioxide-in-europe-may-get-worse (or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/07-09-18_TheEconomist-Shortages_of_Carbon_Dioxide_in_Europe_May_Get_Worse-Footnote_10.pdf)

https://books.google.com/books?id=YvyUAwAAQBAJ&printsec=frontcover&dq=The+heart+of+emerson%27s+journals&hl=en&sa=X&ved=0ahUKEwinmq3P2IrcAhXJx4MKHcu1DcoQ6AEIKTAA#v=onepage&q=The%20heart%20of%20emerson’s%20journals&f=false (or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/07-09-18_Book_Excerpt-The_Heart_of_Emersons_Journals-Footnote_11.pdf)

http://remezcla.com/culture/panama-shirt-grandma-fourth-of-july-celebration/