TRADING WEEK ENDING July 28, 2017

The Week's U.S. Economic Calendar

Select Positive Data Reports

  • University of Michigan Consumer Sentiment
    • (93.4 versus survey of 93.2 and prior of 93.1)
 

Select Negative Data Reports

  • FHFA House Price Index MoM
    • (0.4% versus survey of 0.5% and prior of 0.7%)
  • Initial Jobless Claims
    • (244k versus survey of 240k and prior of 233k)

Market Comments

  • Large cap U.S. stocks (S&P 500) ended the week unchanged as strong quarterly earnings results were largely offset by profit-taking in some of the year-to-date winners. Small cap equities (Russell 2000) lagged their large cap counterparts.
  • Seven of the eleven sectors were positive for the week, highlighted by Telecom (+7.0%), which posted outsized gains on the back of strong corporate earnings.
  • Developed international equities (MSCI EAFE) advanced +0.2%, led by strong returns in Spain and France. Emerging market equities (MSCI EM) gained +0.3% for the week, as strong gains from China boosted index performance.
  • Yield oriented equities posted mixed returns on the week with MLPs and REITs generating nominal returns of +0.7% and +0.5%, respectively, while Utilities dropped -0.5%. The 10-Year Treasury posted a weekly return of -0.4%, as long-end rates climbed from 2.23% to 2.29%. High yield bonds continued their year and a half long rally, up +0.2%. Investment grade bonds fell modestly, down -0.3%.

In The News

  • President Donald Trump replaced Chief of Staff Reince Priebus on Friday with Homeland Security Secretary John Kelly, a retired Marine Corps general. The shift at the top of the White House hierarchy is aimed at bringing order to an administration that has been beset by infighting, as Mr. Trump seeks to notch the sort of sweeping legislative victories that he promised during the campaign but that have eluded him to this point, advisers to the president said.
  • The Republican effort to dismantle the Affordable Care Act collapsed early Friday when a slimmed-down Senate measure to pare back selected pieces of the 2010 health-care law failed, undermining the GOP leaders’ efforts to deliver on a longtime campaign promise.
  • A pickup in global growth and a weakening dollar are boosting profits at many U.S. exporters, helping to support the years’ long rally in the stock market and tipping major indexes to new records. Boeing Co. joined Facebook Inc. and Hersey Co. in reporting strong earnings on this week.

Performance Data as of July 28, 2017

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General Performance Information
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Index Disclosure
The returns and volatility of the indices displayed may be materially different than the client’s account, and a client’s holdings may differ significantly from the securities that comprise the indices. The indices are disclosed to allow for comparisons to well-known and widely recognized indices, and may or may not be appropriate for performance comparisons. An investor cannot invest directly in the index.