Weekly Snapshot September 8th, 2021
Market Review: Week Ending 9/3/2021
The markets traded in a relatively narrow range last week. The S&P500 Index (S&P500) rose 0.58%. Following the S&P500’s lead, the NASDAQ Composite (NASDAQ) advanced 2.82%, and the Russell 2000 Index (R2000) increased 0.65%. Only the Dow Jones Industrial Average (DJIA) ended lower (-0.24%) for the week.1 S&P 500 sector outperformers were REITs +4.02%, Healthcare +1.70%, and Consumer Staples +1.53% while sector underperformers were Financials -2.45%, Energy -1.44% and Materials -0.87%.2 With heightened COVID concerns, slowing economic data, and rising prices growth investing has come back in style. For the week, the Russell 1000 Growth Index (+1.30%) outperformed the Russell 1000 Value Index (-0.07%). Year-to-date, growth has overtaken value and is now leading (+21.76% versus +20.64%).3
The big news in the economy was the substantial miss in the U.S. Nonfarm payrolls. For August, payrolls increased only 235,000 versus consensus expectations around 725,000. The spread of the Delta variant impacted job growth throughout the country, especially in the leisure, hospitality, and retail trades. On the positive side, July’s numbers were revised upward by 134,000, and the unemployment rate fell 0.2% to 5.2%.4 Although service industries appear to be softening, the manufacturing side is still going strong. The Institute for Supply Management (ISM) reported an index of 59.9, which was above consensus and led by gains in new orders and production.5
As we leave the summer behind, the markets get more complicated. Historically, September has been the worst-performing month of the year and second most volatile month behind October – on average.6
WHAT WE WILL BE WATCHING THIS WEEK
Various economic reports on the health and direction of the economy:
- Job Openings – U.S Bureau of Labor Statistics
- Weekly Unemployment Claims – U. S. Department of Labor
- Wholesale Inventories – U.S. Census Bureau
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 FactSet – 9/3/2021
2 FactSet – 9/3/2021
3 JPMorgan Weekly Market Recap – 9/6/2021
4 FactSet – 9/3/2021
5 John Hancock Weekly Market Recap – 9/3/21
6 Edward Jones Weekly Market Wrap – 9/3/21
Past performance is no guarantee of future results.
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.
