Weekly Snapshot June 29, 2021
Market Review: Week Ending 6/25/2021
After last week’s pullback due to potential policy shifts at the Federal Reserve, the markets rebounded as investors reconsidered – looking at the overall growing economy, moderating inflation fears, and still historically low-interest rates. In addition, volatility slowed as equities traded higher, bringing the S&P500 Index (S&P500) and the NASDAQ Composite (NASDAQ) to new index highs. For the week, The Dow Jones Industrial Average (DJIA) advanced 3.44%, the S&P500 gained 2.74%, NASDAQ improved 2.35%, and the Russell 2000 Index (R2000) jumped 4.32%.1 Year-to-date, the DJIA has returned 13.56%, S&P500 14.79%, NASDAQ 11.79%, and R2000 18.71%.2 This week, value style investing reestablished its dominance over Growth, with the Russell 1000 Value Index advancing +3.24% versus the Russell 1000 Growth Index +2.51%. For the year, the Russell 1000 Value has advanced +17.55% versus its Growth counterpart +11.89%.3 Within S&P 500 sectors, outperformers for the week were Energy +6.66%, Financials +5.28%, and Industrials +3.04%, while sector underperformers were Utilities +0.66%, REITs +1.31%, and Consumer Staples +1.84%.4 Year-to-date, Energy +49.4%, Financials +26.5%, and REITs +24.2% have been the leaders while Consumer Discretionary +9.7%, Consumer Staples +4.7%, and Utilities +3.6% have been the laggards.5
Federal Reserve Chairman Powell and other Fed Members continue to state the transitory nature of inflation, and now there are some signs of cooling commodity prices in lumber, metals, and used cars. However, one key commodity (crude oil) continues to buck this trend. U.S. crude prices climbed for the fifth week in a row, rising 4% and reaching $74 per barrel – the highest level since 2018.6
In other news, the Federal Reserve released the results of its annual bank stress test. All 23 banks passed, clearing the way for dividend hikes and accelerated share repurchases in 20217.
WHAT WE WILL BE WATCHING THIS WEEK
Various economic reports on the health and direction of the economy:
- The Conference Board – Consumer Confidence Index
- National Association of Realtors – Pending home sales
- Institute for Supply Management – Manufacturing Index
- U.S. Department of Commerce – Vehicle sales
- U.S. Bureau of Labor Statistics – Payrolls and Unemployment Rate
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
Christopher A. Silipigno, ChFC® – Investment Committee
Christopher G. King – Investment Committee
Timothy J. Shumsky – Investment Committee
Sources:
1 FactSet – 6/25/2021
2 JPMorgan Weekly Market Recap – 6/28/2021
3 JPMorgan Weekly Market Recap – 6/28/2021
4 FactSet – 6/25/2021
5 JPMorgan Weekly Market Recap – 6/28/2021
6 John Hancock Weekly Market Recap – 6/25/2021
7 Edward Jones Weekly Market Wrap – 6/25/2021
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.
