Stocks closed generally higher for the week, with the Russell 2000, the Nasdaq, and the Global Dow posting gains, while the large caps of the Dow and the S&P 500 declined. Ten-year Treasury yields rose as bond prices fell. Crude oil prices gained about $1.00 per barrel. The dollar and gold prices inched higher. Traders are most likely reassessing their positions following the presidential debate. The majority of the market sectors declined last week, with utilities and materials falling the most. Consumer discretionary, communication services, and energy outperformed.
Last Week’s Economic News
- The third and final estimate of first-quarter gross domestic product revealed that the economy accelerated at an annual rate of 1.4%. In the fourth quarter, GDP increased by 3.4%.
- In what will likely give rise to hopes that the Federal Reserve will lower interest rates in the third quarter, consumer prices were unchanged in May, according to the latest personal consumption expenditures (PCE) price index.
- The advance estimate of international trade in goods showed the trade deficit rose by 2.7% in May. Exports declined 2.7%, while imports fell 0.7%.
- New orders for durable goods inched up in May following a downwardly revised 0.2% increase in April.
- Sales of new single-family homes declined 11.3% in May. Inventory of new single-family homes for sale in May represented a 9.3-month supply at the current sales pace.
- The national average retail price for regular gasoline was $3.438 per gallon on June 24.
- For the week ended June 22, there were 233,000 new claims for unemployment insurance, a slight decrease from the previous week’s level. According to the Department of Labor, the advance rate for insured unemployment claims for the week ended June 15 was 1.2%. The advance number of those receiving unemployment insurance benefits during the week ended June 15 was 1,839,000. This is the highest level for insured unemployment since November 27, 2021, when it was 1,878,000.
Eye on the Week Ahead
The jobs report for May is out this week. Employment picked up in April, with 272,000 estimated new jobs added. Strength in the labor sector supports the Federal Reserve’s restrictive monetary policy, particularly relative to interest rates.
Have a nice week!
Sincerely,
Robert G. Carpenter