What Happened last week…
The S&P 500 closed above 5,500 for the first time ever on Tuesday July 2nd during this shortened trading week due to the 4th of July holiday. Finishing out the week, the 3 major indices closed as follows: S&P 500 5,567.19 (16.74% YTD) DJIA 39,375.87 (4.5% YTD) NASDAQ 18,352.76 (22.32% YTD).
According to the Bureau of Labor Statistics, the U.S economy added 206,000 nonfarm payrolls in June, higher than the expected gain of 189,500. It is lower than the 218,000 added in May, which was revised lower from the initial 272,000 originally reported. Unemployment ticked up for the month of June to 4.1% from the May reading of 4%. Average hourly earnings month-over-month were in-line with expectations of .3% which is a decrease from May’s reading of .4%.
Tesla (TSLA) shares posted steady gains throughout the week as they announced on Tuesday that they exceeded expected deliveries for the second quarter. They totaled 443,956 deliveries while analysts expected them to hit 439,000. The stock is up 22.90% in the first 4 trading days of July.
Eli Lily (LLY) on Tuesday received approval from the FDA on their new Alzheimer's treatment drug Donanemab. According to CNBC, the FDA originally rejected the approval filing of this drug last year due to insufficient data. The stock finished up roughly 0.3 % for the week.
US manufacturing once again showed signs of contraction in June. According to Reuter’s, ISM’s manufacturing PMI fell to 48.5 last month which is down from the prior months reading of 48.7.
On Tuesday, Fed Chairman Jerome Powell said inflation is continuing to show signs of decline in the US Economy. Speaking at the European Central Bank’s monetary policy conference Powell said: “I think the last [inflation] reading and the one before it do suggest that we are getting back on a disinflationary path… We want to be more confident that inflation is moving sustainably down before we start the process of loosening policy.”
This week…
On Thursday, the inflation rate year-over-year for June is expected to increase .1% from it’s 3.3% reading in May, according to S&P Global. The rate peaked at 9.1% in June 2022. Meanwhile, the core inflation rate year-over-year for June is expected to hold at 3.4%.
Thanks for Reading!
-The Rockline Team
Rockline Wealth Management, LLC is registered as an investment adviser with U.S. Security and Exchange Commission and only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser does not constitute an endorsement of the firm by the SEC nor does it indicate that the adviser has attained a particular level of skill or ability.
All investment strategies have the potential for profit or loss. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment or strategy will be suitable or profitable for a client's investment portfolio. Asset allocation and diversification do not ensure or guarantee better performance and cannot eliminate the risk of investment losses.