Weekly Update – July 15, 2024
The Week on Wall Street
Stocks advanced last week as market leadership shifted amid fresh inflation data and quarterly corporate reports starting to roll in.
The Standard & Poor’s 500 Index advanced 0.87 percent, while the Dow Jones Industrial Average picked up 1.59 percent. The tech-heavy Nasdaq Composite Index, which has led all year, rose 0.25 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, rallied 1.62 percent for the week through Thursday’s close.1
Dow Breaks 40,000 (Again)
Mega-cap tech led modest gains for the S&P 500 and Nasdaq in the first two days of the week, with the Dow posting modest losses both days.
But that narrow trading range didn’t last long as market leadership shifted midweek. Upbeat corporate earnings reports and milder-than-expected consumer inflation in June drove momentum in a handful of larger industrial and consumer stocks.2,3
Q2 earnings season got into full swing later in the week, dominated mostly by financial and consumer-oriented companies. Markets seemed initially unfazed by better-than-expected reports from some money center banks. Some observers suggested higher interest rates may be one of the reasons for the market’s lukewarm response.4
The Dow ended the week with a solid gain after three consecutive weeks of trailing the S&P 500 and Nasdaq. The Dow also closed above 40,000, the first time it had done so since May, and hit a 52-week intraday high on Friday.
Mixed Inflation News
Two inflation reports came out last week: PPI and CPI.
The Producer Price Index, which measures the change in wholesale prices, rose 2.6 percent in June year over year—its largest increase in 16 months. By contrast, the Consumer Price Index, which tracks consumer prices, showed that the pace of inflation slowed in June.
Markets shrugged off the conflicting data, instead embracing the cooler CPI data. The Fed is likely taking notes for its next Fed meeting, scheduled for July 30-31.5
THIS WEEK: KEY ECONOMIC DATA
Monday: Fed Chair Jerome Powell and Fed Official Mary Daly speak.
Tuesday: Retail Sales. Import and Export Prices. Business Inventories. Housing Market Index. Fed Official Adriana Kugler speaks.
Wednesday: Housing Starts and Permits. Industrial Production. Fed Official Thomas Barkin speaks.
Thursday: Jobless Claims. Fed Officials Michelle Bowman, Mary Daly and Lorie Logan speak. Fed Balance Sheet.
Friday: Fed Officials John Williams and Raphael Bostic speak.
THIS WEEK: COMPANIES REPORTING EARNINGS
Monday: The Goldman Sachs Group, Inc. (GS), BlackRock, Inc. (BLK)
Tuesday: UnitedHealth Group Incorporated (UNH), Bank of America Corporation (BAC), Morgan Stanley (MS), The Charles Schwab Corporation (SCHW)
Wednesday: Johnson & Johnson (JNJ), Elevance Health, Inc. (ELV), Prologis, Inc. (PLD)
Thursday: Netflix, Inc. (NFLX), Abbott Laboratories, Inc. (ABT), Marsh & McLennan Companies, Inc. (MMC), The Blackstone Group (BX), Infosys (INFY)
Friday: American Express Company (AXP)
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1. The Wall Street Journal, July 12, 2024
2. The Wall Street Journal, July 12, 2024
3. The Wall Street Journal, July 11, 2024
4. The Wall Street Journal, July 12, 2024
5. The Wall Street Journal, July 12, 2024