NDS Weekly Recap

August 1, 2016

Markets ebbed and flowed while digesting a week filled with company earnings, Fed guidance and the preliminary 2nd Quarter GDP estimate.  Tech earnings were the highlight of the week with Alphabet (GOOG), Facebook (FB), and Apple (APPL) reporting better-than-expected results.  The FOMC concluded their two-day meeting on Wednesday leaving benchmark interest rates unchanged at 0.25% to 0.50%. This news came as little surprise to markets, but the Fed upgraded their overall assessment of the economy leaving the door open for a hike later this year. The week ended on a sour note as 2nd Quarter GDP came in at 1.2% vs. expectations of 2.6%. Digging into the report, U.S. consumer activity was quite robust while corporate investment was a drag on the headline number.

For the week, DJIA closed at 18432 for a weekly decline of 0.75%.  The broader-based S&P 500 closed at 2174 finishing the week lower by 0.05%.  International equity markets were positive for the week as the MSCI EAFE closed up 2.38% while MSCI EM increased 0.52%.  Treasury yields moved lower, gold was slightly higher, and oil closed the week in the red as concerns arose from declining demand.

We look ahead to another busy week of company earnings as 110 companies in the S&P 500 are set to report. In addition, a lot of attention will be paid to the July payroll number, which will hopefully support continuing strength in the U.S. labor market.

“Life is 10% what happens to you and 90% how you react to it.”  –  Charles Swindoll