The Markets (as of market close July 10, 2026)
Stock traders were somewhat skittish during the early part of last week as tensions in the Middle East intensified. However, stocks closed the week on an uptick following solid sessions last Thursday and Friday. After a brief retreat, tech shares led the market surge, supported by the New York market debut of a major South Korean chip manufacturer, which enjoyed the largest-ever U.S. market debut of a foreign firm. Several market sectors performed well, led by energy and information technology. Consumer discretionary, industrials, and materials lagged. Crude oil prices posted weekly gains despite slipping last Friday as disruptions in the Strait of Hormuz kept supply concerns elevated.
Last Week’s Economic News
- The services sector experienced a modest increase in activity in June, supported by a faster increase in new business as firms responded to gradually stabilizing economic conditions. That said, inflationary pressures stayed elevated, despite easing since May, as tariffs and higher fuel prices increased costs to service providers. Nevertheless, confidence in the sector’s outlook improved in June to the highest since February.
- Sales of existing homes fell slightly in June but were up 2.8% from a year earlier. The inventory of existing homes for sale sat at a 4.6-month supply unchanged from one year ago. The median existing home price in June was above the May price and 1.8% higher than the June 2025 price of $432,700. Sales of existing single-family homes declined a bit in June but increased 3.3% from a year earlier. The median existing single-family home price in June, at $446,400, was above the May price of $436,400 and 1.8% higher than the June 2025 price of $438,600.
- The international trade in goods and services deficit rose 42.2% in May to $77.6 billion. Exports declined 3.2%, while imports increased 3.3%. Year to date, the goods and services deficit decreased $203.9 billion, or 40.6%, from the same period in 2025. Exports increased $164.7 billion, or 11.7%. Imports decreased $39.2 billion, or 2.1%.
- For the week ended July 4, there were 215,000 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 27 was 1.2%, unchanged from the prior week’s rate. The advance number of those receiving unemployment insurance benefits during the week ended June 27 was 1,814,000, a slight increase from the previous week’s level.
- The national average retail price for regular gasoline remains higher than a year ago.
Eye on the Week Ahead
Most of the attention this week will be focused on the latest inflation-related data with the releases of the Consumer Price Index and the Producer Price Index.
Have a nice week!
Sincerely,
Robert G. Carpenter