The US capital markets struggled this week and ended the week down around -0.5% for the major indicies (S&P 500, Dow and Nasdaq). The positive note was the Russell 2000 index, which closed up 1.23% for the week. The Russell 2000 is now up 6.5% for the year, compared to flat on the Dow Jones Industrial Average and +1.5% for the S&P 500.
Oil was up 1% for the week, closing at $71.39 per barrel, while Gold was -2%, closing at $1,293. The utilities sector had a rough week and was down -3.7%. The technology sector struggled as well, finishing down -1.5% for the week, but still a large outperformer this year.
Economic news was mixed this week. The housing starts were under expectations, but new permits exceeded expectations, though mortgage applications declined (higher interest rates compared to last 8 years and high real estate valuations are not helping). The initial jobless claims came out higher than expected, but still well under historic lows - unemployment is at 3.9%.
In political news, China and the US sound close to new tariff agreements, which is positive, but congress failed to pass a Farm bill that, in part, helps subsidize certain farming activities, so we may see a rise in commodity prices (this also will help reach the fed's target inflation rates, though consumers are never pleased with price increases at the grocery store).
Cryptocurrencies struggled again this week, and Bitcoin finished the week at 8,300 bouncing off the lows. Steem was in decline as well, though did bounce off the weekly lows to finish near $3.
Overall, it was a so-so week for what has been a so-so year.
Good luck,
Brian