Weekly Snapshot August 13th, 2021
Market Review: Week Ending 8/13/2021
The U.S. equity markets were mixed for the week. Leading the markets forward was the +0.94% return of the Dow Jones Industrial Average (DJIA). The S&P500 Index (SP500) also advanced +0.75%. However, both the NASDAQ Composite (NASDAQ) and the Russell 2000 Index (R2000) declined -0.07% and -1.06%.1 S&P 500 sector outperformers were Materials +2.68%, Consumer Staples +2.08%, and Financials +1.88% while sector underperformers were Energy -0.81%, Consumer Discretionary +0.04%, and Technology +0.07%. For the year, Energy, Financials, and Real Estate led the markets higher while Consumer Discretionary, Utilities, and Consumer Staples trailed.2 On a style basis, The Russell 1000 Value Index (+1.15%) beat the Russell 1000 Growth Index (+0.18%) and continued to build on its relative outperformance for the year.3
Inflation and consumer confidence were the two major economic reports for the week. Following June’s strong numbers, July’s Consumer Price Index increased 5.4% (annually). Although high, July’s index was a lower number than June’s significant rise supporting the general belief that inflation is transitory. However, the Producer Price Index jumped by 1.0% beating consensus and raising some concerns that inflation was in the system and building.4 Given the spread of the Delta variant, increased consumer anxieties were reflected in the University of Michigan consumer confidence survey which recorded a sharp decline from the previous month (81.2 to 70.2) – its lowest level since December 2011.5
WHAT WE WILL BE WATCHING THIS WEEK
Various economic reports on the health and direction of the economy:
- Retail Sales – U.S. Census Bureau
- Housing Starts – U.S. Census Bureau
- Weekly Unemployment Claims – U.S. Department of Labor
STOCKS IN THE NEWS
- Walt Disney Company (DIS – held in Fundamentum GIE) traded higher as reported Q3 results beat across the board. Revenues came in at $17.0B vs consensus of $16.8B while earnings were $0.79 per share versus$0.26. In addition, both Free Cash Flow and subscriber growth came in above expectations. The attendance recovery at Disney’s theme parks and strong streaming numbers is encouraging, though the coronavirus remains a potential threat to consumers going to both the parks and movie theaters.6
As always, we appreciate your confidence in our team.
Fundamentum Investment Committee
John Nichol, CFA® – Chief Investment Officer
Trevor Forbes – Investment Committee
Robert Armagno – Investment Committee
Sources:
1 JPMorgan Weekly Market Recap – 8/16/2021
2 FactSet – 8/13/2021
3 JPMorgan Weekly Market Recap – 8/16/2021
4 Edward Jones Weekly Market Wrap – 8/13/2021
5 John Hancock Weekly Market Recap – 8/13/2021
6 FactSet – 8/13/2021
Investment advice offered through Fundamentum LLC a registered investment advisor. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. There is no assurance that the investment objective of any investment strategy will be attained. Investing involves risk including loss of principal. Past performance is no guarantee of future performance. All indices are unmanaged and may not be invested into directly.
