Stocks ended last week higher, despite falling energy shares. The Dow and S&P 500 rose last Friday on the heels of June’s strong labor report. Of the other major indexes, the Dow led the way followed by the Nasdaq and the Global Dow. The yield on 10-year Treasuries climbed closer to its 2016 closing value as long-term bond prices fell, sending yields higher. The price of crude oil (WTI) closed at $44.30 per barrel, down from the prior week’s closing price of $46.33 per barrel. The price of gold (COMEX) decreased last week, closing at $1,212.00 by late Friday afternoon, down from the prior week’s price of $1,241.40.
Last Week’s Economic Headlines
- The job situation rebounded in a big way in June as 222,000 new jobs were added during the month mainly in health care, social assistance, financial activities, and mining.
- The IHS Markit final US Manufacturing Purchasing Managers’ Index™ (PMI™) indicated that manufacturing slowed in June.
- On the other hand, the Manufacturing ISM® Report On Business® suggested that the manufacturing sector expanded in June.
- The services sector expanded in June, according to the latest Non-Manufacturing ISM® Report On Business®.
- The international trade deficit shrunk in May, according to the Census Bureau.
BWFA Eye on the Week Ahead
Trading is expected to pick up this week following the holiday-shortened week. Last week’s favorable employment report should quell investors’ concerns about a slowdown in job growth. This week, reports focusing on consumer spending and inflationary trends are out with the Producer Price Index, retail sales report, and The Consumer Price Index.
