The US Capital Markets had a down week this week, with the major indicies down over 1%. The Dow Jones Industrial Average had the biggest weekly decline at -1.54%, put the Dow at +0.9% for the year. Small and large cap stocks alike were down, and value and growth stocks had rough weeks, but growth stocks remain the significant outperformers for the year.
Commodities were fairly flat, and oil remains at $62 a barrel. Gold settled in at $1,313 per oz. US treasury yields increased for longer maturities in anticipation that more inflation is coming. The Consumer Confidence Index remains high.
In economic news, jobless claims fell again and unemployment remains at 4.1% overall. Housing starts data fell, though the rising interest rates have yet to affect the housing markets as was feared.
In political news, President Trump has not received the support he expected for the tariffs that were implemented last week, receiving criticism across the board. Also, the US implemented additional sanctions on a number of individuals and entities for their suspected role in election meddling - this ended up causing a decline in the Russian markets of about 4% for the week.
Personally, I think the US capital markets will continue to be fairly volatile, but feel we have a good chance of the S&P 500 earning 3-8% for the remainder of the year. I remain fully invested at this point.
Good luck,
Brian