ROBARE & JONES ON THE MARKETS
The S&P 500 was flat this past week (down 19% YTD) amid higher-than-expected June inflation figures and a disappointing initial round of Q2 earnings reports. The year-over-year rate for overall CPI accelerated to a record 9.1% from 8.6% in May, while the rate for core CPI slowed modestly to 5.9% from 6%.
All but one sector of the S&P 500 fell this past week. Communication services had the largest weekly percentage drop, falling 3.3%, followed by a 3.1% slide in energy. Among the others in the red, the materials, industrials and consumer discretionary sectors all logged declines of more than 1% each. The lone gainer was consumer staples, which edged up 0.1%.
The decliners in communication services included shares of Facebook parent Meta Platforms (META), which fell 3.6% amid several negative analysts' actions. Energy also fell slightly as well as demand for oil production has slightly decreased.
Economic reports due next week will feature housing data in the earlier part of the week, including the NAHB/Wells Fargo Housing Market Index for July, weekly jobless claims, and the July Philadelphia Fed manufacturing index are expected.
What are your thoughts about the current market conditions? Let us know!