Weekly Market Insights: Stocks Steady in Short Holiday Trading

Stocks steadily advanced over the holiday week thanks to strength in mega-cap tech issues and encouraging jobs data.

The Standard & Poor’s 500 Index rose 1.95 percent, while the Nasdaq Composite Index added 3.50 percent. The Dow Jones Industrial Average edged up a modest 0.66 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, rose 2.30 percent for the week through Thursday’s close.¹

Nasdaq, S&P Extend Runs

ADP’s employment report on Wednesday showed private-sector employers added 150,000 jobs in June—slightly slower than May’s pace—adding to investor hopes that a slowing economy may prompt the Fed to adjust short-term rates as early as September. The Nasdaq and the S&P hit their 23rd and 33rd record closes, respectively, for the year.²

Friday morning’s jobs report from the Labor Department showed 206,000 jobs added last month, which also suggested a strong-but-cooling economy. News of slower job growth, slowing wage growth, and a slight uptick in unemployment helped drive down Treasury yields, and stocks finished the short week with a strong rally. The Nasdaq and S&P both closed at all-time highs on Friday.³

^{Source: YCharts.com, July 6, 2024. Weekly performance is measured from Friday, June 28, to Friday, July 5.
TR = total return for the index, which includes any dividends as well as any other cash distributions during the period.
Treasury note yield is expressed in basis points.}

Still Catching Up?

Driving much of the job growth in last week's reports was a post-pandemic catchup effect: sectors such as healthcare and leisure/hospitality showed they are still recovering.⁴

The private-sector jobs data and the Labor Department report painted a similar picture of an economy creating jobs but at a slower rate than in the past.^5,6

This Week: Key Economic Data

Tuesday: Fed Chair Jerome Powell speaks.

Wednesday: Petroleum Status Report. Fed Officials Austan Goolsbee and Michelle Bowman speak.

Thursday: Consumer Price Index (CPI). Jobless Claims. Fed Officials Raphael Bostic and Alberto Musalem speak. Fed Balance Sheet.

Friday: Wholesale Inflation (Producer Price Index). Consumer Sentiment.

^{Source: Investors Business Daily - Econoday economic calendar;  July 5, 2024
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

This Week: Companies Reporting Earnings

Thursday: PepsiCo, Inc. (PEP), The Progressive Corporation (PGR), Delta Air Lines, Inc. (DAL), Conagra Brands (CAG)

Friday: JPMorgan Chase & Co. (JPM), Wells Fargo & Company (WFC), Citigroup Inc. (C), The Bank of New York Mellon Corporation (BK)

^{Source: Zacks, July 5, 2024
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

New York City, New York

Footnotes and Sources

^{1. The Wall Street Journal, July 5, 2024}

^{2. The Wall Street Journal, July 3, 2024}

^{3. The Wall Street Journal, July 5, 2024}

^{4. The Wall Street Journal, July 5, 2024}

^{5. The Wall Street Journal, July 5, 2024}

^{6. Marketwatch.com, July 5, 2024}

^{7.  IRS.gov, May 7, 2024}

^{8. Harvard Medical School, May 7, 2024}