The Week's U.S. Economic Calendar
- Nonfarm Payrolls
- (209k versus survey of 180k and prior of 231k)
- Average Hourly Earnings YoY
- (+2.5% versus survey of +2.4% and prior of +2.5%)
- ISM Manufacturing
- (56.3 versus survey of 56.5 and prior of 57.8)
- ISM Non-Manufacturing
- (53.9 versus survey of 56.9 and prior of 57.4)
- Large cap U.S. stocks (S&P 500) posted a weekly gain as a result of better than expected corporate earnings results and a strong jobs report. Small cap equities (Russell 2000) lagged their large cap counterparts, falling -1.2% on the week.
- Seven of the eleven sectors were negative for the week, highlighted by Energy (-1.0%), Materials (-0.8% ) and Consumer Staples (-0.6%). Financials (+1.9%) and Utilities (+1.5%) were the largest contributors.
- Developed international equities (MSCI EAFE) advanced +0.9%, led by strong returns in France and the United Kingdom. Emerging market equities (MSCI EM) gained +0.4% for the week, as strong gains from Taiwan and China boosted index performance.
- Yield oriented equities posted mixed returns on the week with MLPs and REITs generating nominal returns of -1.4% and -0.1%, respectively, while the aforementioned Utilities advanced +1.5%. The 10-Year Treasury posted a weekly return of +0.2%, as long-end rates fell to 2.27%.
- The Dow Jones Industrial Average hit 22,000, the highest level in its history, sparked by broad global growth. The index of the largest 30 U.S. companies has posted 33 record closes this year and has not seen a pullback of over -3% in more than 12 months as equity volatility hovers near all-time lows.
- A reason for the record stock levels has to do with earnings. Companies comprising the S&P 500 have experienced two consecutive quarters of double-digit earnings growth for the first time since 2011. The upswing in earnings can be seen across most sectors as only utilities are expected to experience a decline.
- The Trump administration is planning to use a little used provision in U.S. trade law to investigate China’s intellectual-property policies in order to reveal if they are “unfair business practices” that disadvantage the U.S. There have been strong concerns by many U.S. business groups over the years that the Chinese have stolen intellectual property from U.S. and foreign companies.
Performance Data as of August 4, 2017
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