What we think

IN-THE-MARKETS

In the Markets – Week-Ending July 22

by Peter J. Creedon

Newsletter: In the Markets – Week-Ending July 22
Crystal Brook Advisors
We Make Financial Planning Crystal Clear

United States: U.S. government bonds held relatively steady, as investors awaited the next trading catalyst following last week’s selloff of haven debt.(1) Housing starts rose 4.8 per cent to 1.19m in June from the previous month when they slid by a revised 1.7 per cent(2)

Europe: The Turkish lira rebounded against the U.S. dollar Monday, and currencies from South Africa to Mexico recovered as emerging markets shook off concerns generated by a failed coup in Turkey.(3) Mario Draghi, President of ECB, backed a public bailout of Italy’s troubled banks “in exceptional circumstances”, even as he hailed the eurozone for its resilience in the aftermath of Britain’s decision to quit the EU and left interest rates on hold.(4)

Asia: The Justice Department filed civil forfeiture complaints against more than $1 billion of assets allegedly acquired using funds misappropriated from Malaysian economic development fund 1MDB. (5) The World Bank urged China to take its healthcare reforms to a new level or risk spending an extra 3% of GDP a year by 2035.(6)

Monday 07/18

• U.S. stocks held steady after Bank of America became the latest large lender to beat earnings expectations and investors largely shrugged off the failed coup attempt in Turkey.(7)
• SoftBank has acquired chip designer ARM Holdings for £24.3B ($32B), as the Japanese telecoms giant bolsters its presence in the growing Internet of Things sector.(8)

Tuesday 07/19

• Global stocks lost ground as investors paused after a rally that has seen Wall Street race past several records and European stocks recover most of their post-Brexit losses.(9)
• Housing starts rose a solid 4.8 percent in June. Single-family starts rose 4.4 percent and are running 13.2 percent ahead of their year-ago pace through the first six months of 2016.(10)

Wednesday 07/20

• Global stocks mostly rose, while the U.S. dollar gained, as investors struck a cautiously optimistic tone ahead of Thursday’s European Central Bank meeting.(11)
• Dollar Shave Club, the start-up that upended the men’s razor blade industry with its online-only subscription service, has been acquired by Unilever.(12)

Thursday 07/21

• ECB expects rates to remain at present level or lower for ‘extended period’.(13)
• Amazon has formed a partnership with Wells Fargo, in which the bank will offer interest rate discounts to select “Prime Students.”(14)

Friday 07/22

• U.S. stocks were slightly higher Friday, capping a slow week of trading when earnings reports largely drove market moves.(15)
• Although it’s still weighing whether to do so alone or with a partner, MasterCard hopes to apply this year to become a payment service provider in China after the government opened the market in June.(16)
 

Market Close
The S&P 500 finished at a new record high close on Friday with the broader market gaining for a fourth week in a row as stocks bounced back from Thursday’s correction. The S&P 500 index SPX, +0.46% rose 10 points, or 0.5%, to end at 2,175 for a weekly gain of 0.6%. The Dow Jones Industrial Average DJIA, +0.29% gained 53 points, or 0.3%, to close at 18,570, adding 0.3% for the week. The Nasdaq Composite Index COMP, +0.52% advanced 26 points, or 0.5%, to finish at 5,100, closing the week 1.4% higher.(17)

Contributor: Oscar Xia

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