Weekly Commentary

Index12/31/202306/21/202406/28/2024% Change Week% Change YTD
Dow Jones Industrial Average37,69039,15039,119-0.08%3.8%
S&P 5004,7705,4655,460-0.08%14.5%
Nasdaq Composite15,01117,68917,7530.36%18.3%
Russell Mid-Cap Index3,1123,2493,240-0.28%4.1%
Russell Small-Cap Index 2,0272,0222,0471.26%1.0%

June 28th, 2024

Dear Friends –

The equity markets finished the week mixed as the first half of the year drew to a close.  For the week the Dow and the S&P were both off 0.08%, the Nasdaq gained 0.36%.  The Russell Mid-Cap was off 0.28% and the Russell Small-Cap and MSCI EAFE indexes added 1.26% and 0.49%.  For the year the six indexes are up 3.8%, 14.5%, 18.3%, 4.1%, 1% and up 4% respectively. 

The markets opened the week mixed but mostly higher as weakness in technology weighed on the S&P and the Nasdaq.  Semiconductor stocks led the declines once again as shares of Nvidia fell 6.7%.  Despite the losses overall nine of the 11 S&P sectors finished higher led by energy, utilities and consumer staples with gains of 2.73%, 1.25% and 1%.  Technology and consumer discretionary finished down 2.07% and 0.74%.  The Dow was led by Amgen, Goldman Sachs, Chevron and Verizon with gains of 3.2%, 2.65%, 2.6% and 2.3%.  The Dow closed up 261 points or 0.67%, at 39,411.  The S&P and the Nasdaq closed down 0.31% and 1.1%.  The 10-year Treasury note opened the week down three basis points yielding 4.23%.  Crude prices ended up 1.1% at just under $81.70 per barrel.

Stocks were mixed again Tuesday but in a reversal from a day earlier as technology led the major indexes.  Shares of Nvidia bounced back to close up 6.76% to lead the Nasdaq and the S&P following several negative sessions.  Eight of the 11 S&P sectors finished lower led by real estate, materials and utilities with losses of 1.4%, 1.28% and 0.98%.  Communication services and technology led on the upside with gains of 1.85% and 1.79%.  Shares of Home Depot, Dow Inc. and Nike led the Dow lower with losses of 3.58%, 2.67% and 2.49%.  Salesforce and Microsoft led on the upside with gains of 1.76% and 0.73%.  The Dow closed down 299 points or 0.76%, at 39,112.  The S&P and the Nasdaq finished up 0.39% and 1.26%.  The 10-year Treasury note closed up one basis point at 2.46%.  Crude prices ended down 1% near $80.80 per barrel. 

The markets finished modest gains Wednesday with the Nasdaq leading the major indexes.  Shares of Amazon and Apple led the Dow higher with gains of 3.9% and 2%, while Tesla’s gain of 4.8% led the Nasdaq.  Eight of the 11 S&P sectors finished lower led by energy, financials and utilities with losses of 0.86%, 0.47% and 0.38%.  Consumer discretionary and technology led on the upside with gains of 1.98% and 0.37%.  Treasury yields moved higher following comments from several Fed officials that once again expressed caution about cutting rates in the face of sticky inflation numbers.  The Dow ended up 16 points or 0.04%, at 39,128.  The S&P and the Nasdaq gained 0.16% and 0.49%.  The 10-year Treasury finished up seven basis points to close at 4.33%.  Crude prices fell 0.2% to settle near $80.65 per barrel.

Stocks inched higher again with the major indexes closing with modest gains for the second straight session ahead of a key inflation report due out Friday.  The May core personal consumption indicators index (PCE), widely known as the Fed’s preferred inflation gauge, is expected to show prices rising just 0.1% last month and 2.6% over the past year.  Six of the 11 S&P sectors finished higher led by real estate, consumer discretionary and communication services with gains of 0.93%, 0.9% and 0.77%.  Consumer staples, materials and financials led on the downside with losses of 0.5%, 0.3% and 0.25%.  Shares of Salesforce and Boeing led the Dow higher with gains of 4% and 2.25%, while shares of Walgreens weighed on the S&P after falling 22% on weaker-than-expected earnings.  The Dow ended up 36 points or 0.09%, at 39,164.  The S&P and the Nasdaq added 0.09% and 0.3%.  The 10-year Treasury note was off four basis points at 4.29%.  Crude prices rose 1.2% to close near $81.80 per barrel.

The markets closed with modest losses heading into the weekend Friday after receiving some positive news on inflation.  The May PCE reading came in right in-line with estimates with an uptick of 0.1% on the month and 2.6% over the past 12 months, which is the slowest inflation reading in three years.  In other economic news the University of Michigan’s consumer sentiment index moved higher unexpectedly in May coming in at 68.2 versus 65.6 a month earlier.  Stocks drifted lower in the session to close out the first half of the year with solid gains.  In earnings news shares of Nike fell over 20% on weaker full-year guidance to weigh on the S&P and the Dow.  Seven of the 11 S&P sectors finished lower led by communication services, consumer discretionary and utilities with losses of 1.6%, 1.36% and 1.08%.  Real estate, energy and financials led on the upside with gain of 0.62%, 0.42% and 0.38%.  The Dow closed down 40 points or 0.1%, at 39,124.  The S&P and the Nasdaq were off 0.4% and 0.7%.  The 10-year Treasury note closed up ten basis points at 4.39%.  Crude prices fell 0.35% to settle near $81.50 per barrel.  

Sonata

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