Monthly Archives: July 2022

The Weekly Update

Week of July 25th, 2022
By Christopher T. Much, CFP®, AIF®

Stocks rallied last week as investor spirits lifted thanks to a better-than-expected start to the second-quarter earnings season.

The Dow Jones Industrial Average gained 1.95%, while the Standard & Poor’s 500 added 2.55%. The Nasdaq Composite index jumped 3.33% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, advanced 3.54%.

Earnings Propel Stocks
Earnings season kicked off last week, with major banks reporting second-quarter results. While their results were mixed, they appeared to indicate that consumers and businesses remained reasonably healthy–a perspective that helped erase some negative sentiment overhanging the market.

As the week progressed, stocks gained momentum as earnings results poured in from different sectors of the economy, showing that businesses were navigating higher inflation and slowing growth better than investors feared. Technology and other gloomier sectors were among the market’s best performers for the week. …

The Weekly Update

Week of July 18th, 2022
By Christopher T. Much, CFP®, AIF®

A record-high inflation report, the prospects of a more aggressive Fed, and growing recession fears sent stocks lower – though losses were pared by a Friday rally.

The Dow Jones Industrial Average slipped 0.16%, while the Standard & Poor’s 500 lost 0.93%. The Nasdaq Composite index dropped 1.57% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, lost 3.49%.

Stocks Slide
As the week opened, recession fears intensified with reports of renewed Covid-related lockdowns in China. Also, the U.S. dollar continued to climb, reflecting global economic weakness.

June’s consumer price index report showed price increases accelerating. Year-over-Year prices jumped 9.1%, the fastest pace in over 40 years. Speculation grew that the Federal Reserve might contemplate a 100-basis point increase in short-term rates later this month, rather than the 75-basis point hike it earlier signaled. The market rebounded …

The Weekly Update

Week of July 11th, 2022
By Christopher T. Much, CFP®, AIF®

In a holiday-shortened trading week, stocks rallied despite mixed economic data and vacillating energy prices and bond yields.

The Dow Jones Industrial Average increased 0.77%, while the Standard & Poor’s 500 rose 1.94%. The Nasdaq Composite index picked up 4.56% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, edged 0.46% higher.

Stocks Move Higher
In advance of Friday’s much-anticipated employment report, stocks enjoyed successive daily gains despite ongoing concerns about a recession. Recession fears were supported by an inversion in the yield curve and updated second-quarter Gross Domestic Product projections indicating the economy is ready to contract.

Technology shares were the week’s big winners as investors appear to have turned to companies with earnings growth potential during a weakening economic environment. Stocks bounced along the flatline following the strong jobs report on Friday to close out …

The Weekly Update

Week of July 5th, 2022
By Christopher T. Much, CFP®, AIF®

After the S&P 500 posted its worst first half of the year since 1970, U.S. stock futures are starting the new month and new quarter under pressure.

All three major U.S. stock indexes finished the month and the second quarter in negative territory last week. For the month, the S&P 500 fell 8.4%, the Nasdaq declined 8.7%, and the Dow lost 6.7%.

It was the largest first-half percentage drop ever for the Nasdaq, while the Dow plunged the most since 1962. For the first half of 2022, the S&P 500 fell 20.6%, the Nasdaq lost 29.5%, and the Dow declined 15.3%. All three indexes posted their second straight quarterly declines. The last time that happened was in 2015 for the S&P 500 and the Dow, and 2016 for the Nasdaq. For the quarter, the S&P 500 declined 16.4%, the …