Weekly Snapshot June 09, 2021
Market Review: Week Ending 6/4/2021
Markets finished higher for the week, with the Dow Jones Industrial Average (DJIA) gaining 0.66%, the S&P500 Index (S&P500) improving 0.61%, the Russell 2000 Index (R2000) advancing 0.77%, and the NASDAQ Composite (NASDAQ) gaining 0.48%.1 Both the DJIA and S&P500 are now just shy of record highs set four weeks earlier. Value strategies reestablished themselves with the Russell 1000 Value index outperforming the Russell 1000 Growth index by 43bps. The Russell 1000 Value index has jumped +19.31% year-to-date while the Russell 1000 Growth index is only up +6.68%.2 Within S&P 500 sectors, outperformers for the week were Energy +6.68%, REITs +3.13%, and Financials +2.14%, while sector underperformers were HealthCare -1.15%, Consumer Discretionary -0.99%, and Industrials -0.22%.3
The Labor Department’s May nonfarm payrolls came in at 559,000, showing continued improvement in job growth and the unemployment rate. However, the economy is still 7.64 million jobs below pre-pandemic total employment, leaving plenty of room for improvement. Although May’s job payroll was below expectations of 670,000, jobs were significantly greater than last month but not “hot” enough for the Federal Reserve to quickly remove monetary support.4
In the wake of strong first-quarter earnings, Wall Street analysts continue to raise their earnings forecast for S&P 500 companies at the highest pace (+ 5.8%) since tracking began in 2002 by FactSet Research5. In other news, The Federal Reserve unexpectedly announced it would sell down its relatively small corporate bond facility. While the news had minimal market impact, the signaling effect for risk assets raises some cautionary flags.
WHAT WE WILL BE WATCHING THIS WEEK
Various economic reports on the health and direction of the economy:
- Consumer Price Index, Core CPI
- MBA Mortgage Purchase Applications
- NFIB Small Business Optimism
- University of Michigan Index of Consumer Sentiment
The speed and direction of Infrastructure stimulus negotiations.
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 – 6/4/2021
2 J.P. Morgan Market Recap – 6/4/2021
3 FactSet – 6/4/2021
4 Edward Jones Market Wrap – 6/4/2021
5 John Hancock – 6/4/2021
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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.
