Broker Check


THIS WEEK'S UPDATE

| June 28, 2021
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THE WEEK ON WALL STREET

Stocks reached new all-time highs last week as markets staged a strong rebound

from the previous week's declines.  The Dow Jones Industrial Average rose 3.44%

while the Standard & Poor's 500 picked up 2.74%.  The Nasdaq Composite index

increased 2.35%.  The MSCI EAFE index, which tracks developed overseas stock 

markets, gained 0.97%

STOCKS CLIMB

Stocks rallied on the first day of trading last week and gained further momentum on

Thursday and Friday.  Despite some discouraging data on housing and initial jobless

claims, stocks management to set new highs, as investors cheered an agreement

between President Biden and a group of senators that appeared to pave the way for the

passage of a $1 trillion infrastructure bill.  Positive results from the Federal  Reserve's

stress test of banks, which raised the prospect of banks raising their dividend payouts  

and share buybacks, and a key inflation measure coming in at market expectations

provided impetus for further gains.  The S&P 500 had it best week since February and

ended the five-trading days at a record high.

HOUSING HEADWINDS

Historically low mortgage rates, the COVID-19 pandemic, and a flush consumer

have contributed to a very strong housing market in recent months.  Last week's 

housing data for May, however, showed that housing may be running into head-

winds.  The rising cost of materials and labor led to a 5.9% decline in new single

home sales in May even as the median price hit an all-time high.  Meanwhile,

sales of existing homes fell 0.9%, the fourth-straight month of declines, owing 

to a very low inventory.  High demand, coupled with a depressed supply, led to a 

23.6% increase in the median price of an existing home.

THE WEEK AHEAD: KEY ECONOMIC DATA

Tuesday: Consumer Confidence.

Wednesday: ADP (Automated Data Processing) Employment Report.

Thursday: Jobless Claims. ISM (Institute of Supply Management) Manufacturing

Index.

Friday: Employment Situation Report.  Factory Orders.

THE WEEK AHEAD: NOTABLE COMPANIES REPORTING EARNINGS

Wednesday: Micron Technology, Inc. (MU), Constellation Brands, Inc. (STZ),

General Mills, Inc. (GIS).

Thursday:  Walgreens Boots Alliance, Inc. (WBA), McCormick & Company Inc. (MKC).

 

FINAL THOUGHTS

We sometimes make a distinction between "investment" and "speculation".  The

investor seeks long-term value, while the speculator shoots for short-term profits.

We believe there is value left to conquer as we continue the recovery cycle of our

economy.  We leave the glitz of day-trading to others.  Patience, discipline and 

focusing on fundamentals remain the preferred strategy to a positive breakout 

towards new highs.

Have a great week!

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