Short On Time… Executive Summary
Last week, the stock market saw a strong recovery. Strong performances, particularly from tech giants like Apple, which helped push the Nasdaq to a record high, signaling investor confidence in the market's resilience. This week, investors are focusing on key economic releases, with the Consumer Price Index (CPI) due Tuesday and the Producer Price Index (PPI) on Thursday. These reports will shed light on inflation trends and shape expectations for a potential Federal Reserve rate cut in September. With the S&P 500 near all-time highs and ongoing trade talks, particularly with China, markets may see some volatility. Retail sales data and the upcoming Jackson Hole symposium will also influence investor sentiment in the days ahead.
The Week On Wall Street
Stocks rebounded last week as investor optimism for a September rate adjustment and strong Q2 corporate results overcame the rollout of fresh tariffs. The Standard & Poor’s 500 Index rose 2.43 percent, while the Nasdaq Composite Index gained 3.87 percent. The Dow Jones Industrial Average added 1.35 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, increased 2.77 percent.
Stocks Gyrate
Stocks pushed higher to start the week, with major averages gaining between 1.3 percent and 2 percent—their best day since May. Investors seemed more optimistic for a rate move after the weaker-than-expected July jobs report. Stocks rose again midweek after the White House confirmed a mega-cap tech company would invest $500 billion more in domestic manufacturing. News of additional tariffs on India was greeted with a muted reaction from investors. The updated tariffs previously announced by the White House went into effect on Thursday. Markets initially rose in early trading but then came under pressure as the day continued. But the S&P and Dow rose again on Friday, ending the week with solid gains. The tech-heavy Nasdaq ended the week with a record close.
Economy Watch
Services comprise 70 percent of the economy, so Wall Street closely monitors the Institute for Supply Management’s Services Index. So, news on Tuesday that growth in services came below economists’ expectations was a bit of a concern. However, investors seemed to quickly look past the number and focus more on the 122 S&P 500 companies that reported earnings last week.
This Week: Key Economic Data
Tuesday: NFIB Small Business Optimism Index. Consumer Price Index (CPI). Federal Budget.
Wednesday: Atlanta Fed President Raphael Bostic speaks. Chicago Fed President Austan Goolsbee speaks.
Thursday: Weekly Jobless Claims. Producer Price Index (PPI). Fed Balance Sheet. Richmond Fed President Tom Barkin speaks.
Friday: Retail Sales. Industrial Production. Import & Export Prices. Business Inventories. Consumer Sentiment.
This Week: Notable Companies Reporting Earnings
Wednesday: Cisco Systems, Inc. (CSCO)
Thursday: Applied Materials, Inc. (AMAT), Deere & Company (DE), NetEase, Inc. (NTES)
Stay tuned...
