Weekly Update – July 22, 2024
The Week on Wall Street
Stocks were under pressure last week as investors appeared to rotate out of mega-cap tech stocks and into areas that may benefit from lower interest rates.
The Standard & Poor’s 500 Index fell 1.97 percent, while Nasdaq Composite Index declined 3.65 percent. The Dow Jones Industrial Average bucked the downward trend, up 0.72 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, slid 1.48 percent for the week through Thursday’s close.1
Dow Leads Again
The week began very differently than it ended.
All three averages rallied over the first couple of days this week, with the Dow leading on both days. Fed Chair Powell indicated the Fed may not wait for inflation to reach its 2 percent target before considering a rate move, buoying the markets.2,3
Then, markets hit a speed bump as investors appeared to take profits and rotated away from mega-cap tech names. The selling broadened beyond tech-related names on Thursday as all but one of the S&P 500’s 11 sectors fell.
Early Friday morning, a global tech outage caused disruptions for businesses, governments, and financial institutions, contributing to the weekly decline. Despite its losses in the second part of the week, the Dow finished in the green.4,5,6
Upbeat Economic Data
Although stocks were under pressure, some investors saw “green shoots” in a few economic reports. Housing starts rose 3 percent in June. Building permits also ticked higher during the month. Retail sales were unchanged in June, which was better than expected. Investors were encouraged that consumers were still spending despite ongoing inflation.7,8
THIS WEEK: KEY ECONOMIC DATA
Tuesday: Existing Home Sales.
Wednesday: New Home Sales. Survey of Business Uncertainty.
Thursday: Gross Domestic Product (GDP). Durable Goods. International Trade in Goods. Jobless Claims.
Friday: Personal Income and Outlays. Consumer Sentiment.
THIS WEEK: COMPANIES REPORTING EARNINGS
Monday: Verizon Communications Inc. (VZ)
Tuesday: Alphabet Inc. (GOOG, GOOGL), Tesla, Inc. (TSLA), Visa Inc. (V), The Coca-Cola Company (KO), Texas Instruments Incorporated (TXN), GE Aerospace (GE), Philip Morris International Inc. (PM), United Parcel Service, Inc. (UPS)
Wednesday: International Business Machines Corporation (IBM), AT&T Inc. (T)
Thursday: AbbVie Inc. (ABBV), Union Pacific Corporation (UNP), Honeywell International Inc. (HON)
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1. The Wall Street Journal, July 19, 2024
2. CNBC.com, July 15, 2024
3. CNBC.com, July 16, 2024
4. MarketWatch.com, July 17, 2024
5. CNBC.com, July 18, 2024
6. The Wall Street Journal, July 19, 2024
7. KPMG.com, July 17, 2024
8. AP.com, July 16, 2024