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IN-THE-MARKETS

In the Markets – Week-Ending July 15

by Peter J. Creedon

Newsletter: In the Markets – Week-Ending July 15
Crystal Brook Advisors
We Make Financial Planning Crystal Clear

United States: Retail sales surged 0.6 percent in June, ending a very strong second quarter for spending that should put any idea of a slowing economy to rest.(1) Consumer credit topped expectations in May, increasing by $18.6 billion. Nonrevolving credit growth has held steady of late, while revolving has continued to accelerate from earlier in the expansion.(2)

Europe: The European Commission has slashed its U.K. and eurozone growth forecasts following the Brexit vote, stating the cumulative negative impact for British GDP would be about 1%-2.5%, and the euro area between 0.2%-0.5%, by 2017.(3)
Just three weeks after the U.K. voted in favor of leaving the EU, Theresa May will take over from David Cameron to become the 54th British prime minister.(4)

Asia: China’s consumer inflation last month grew at its slowest pace (1.9%) since January, suggesting the country is still experiencing weak demand.(5) Japan’s Nikkei extended gains to almost recapture its pre-Brexit level, after Prime Minister Shinzo Abe ordered a new round of fiscal stimulus as a “bold investment into seeds of future growth.”(6)

Monday 07/11

• The S&P 500 touched a record intraday high Monday, topping levels last seen more than a year ago in a reflection of investors’ bets that the U.S. economy remains a pocket of solidity in a troubled world.(7)
• Japanese messaging service Line Corp., set for a dual New York and Tokyo listing this week, has priced its initial public offering at the top of its marketed range at ¥3,300 per share.(8)

Tuesday 07/12

• U.S. stocks climbed higher, propelling the Dow Jones Industrial Average to highs not reached for more than a year. The Nasdaq Composite, a laggard this year, also surpassed its 2015 closing level for the first time.(9)
• Amazon surged past Berkshire Hathaway to a market cap of about $356B, becoming the fifth largest U.S. company (Berkshire’s (BRK.A, BRK.B) market value currently sits at $355B).(10)

Wednesday 07/13

• Global markets rose in volatile trade, extending a recent rally that saw Wall Street surge to record highs.(11)
• Germany has sold 10-year Bunds with a zero percent coupon, issuing benchmark debt with a negative yield for the first time in history.(12)

Thursday 07/14

• U.S. stocks climbed after the Bank of England hinted it would launch fresh stimulus next month and as stronger-than-expected earnings lifted bank shares.(13)
• The producer price index (PPI) for final demand rose more than expected in June, up 0.5 percent. Gains were seen beyond the volatile components of food, energy and trade services, but the trend remains tame.(14)

Friday 07/15

• Equities are trading lower, weighed down by travel and tourism stocks, in yet another terror driven selloff.(15)
• Line Corp., the Japanese messaging app whose stock made its debut in New York and Tokyo during the past two days, has had a very lucky run, raising $1.26 billion in the biggest technology IPO of the year globally, so far.(16)
 

Market Close
U.S. stocks closed at their third-straight week of gains Friday, as the S&P 500 Index and the Nasdaq Composite Index retreated slightly on the session and the Dow Jones Industrial Average gained slightly for a fourth straight day of record closing highs. The Dow industrials DJIA, +0.05% rose 10.14 points, or less than 0.1%, to close at 18,516.55, a fresh closing high for the average, for a 2% weekly gain. The S&P 500 SPX, -0.09% slipped 2.01 points, or 0.1%, to close at 2,161.74, for a weekly gain of 1.5%. The Nasdaq COMP, -0.09% declined 4.47 points, or 0.1%, to finish at 5,029.59, for a weekly gain of 1.5%.(17)

Contributor: Oscar Xia

Sources:
(1) Source: Wells Fargo Economics Group
(2) Source: Wells Fargo Economics Group
(3) Source: Seeking Alpha
(4) Source: Seeking Alpha
(5) Source: Seeking Alpha
(6) Source: Seeking Alpha
(7) Source: Wall Street Journal
(8) Source: Seeking Alpha
(9) Source: Wall Street Journal
(10) Source: Seeking Alpha
(11) Source: Wall Street Journal
(12) Source: Seeking Alpha
(13) Source: Wall Street Journal
(14) Source: Wells Fargo Economics Group
(15) Source: Seeking Alpha
(16) Source: Wall Street Journal
(17) Source: MarketWatch