Stocks finished the week mostly lower amid a financial crisis in Turkey rattling the global stock market.  However, the tech heavy Nasdaq index managed to keep its head above water as tech stocks rally.  The Russell 2000 also finished higher as small and mid-cap stocks tend to have less ties overseas.  Underwhelming inflation data pulled interest rates lower, with the 10-year treasury yield dropping 9 basis points to 2.86%.  The spread between the 10-year treasury yield and the 2-year treasury yield also dropped to 0.28%, 4 basis points lower than the week prior.  The price of gold moved slightly lower, dropping 0.23% to $1,219.10 an ounce.  The price of crude oil dropped 1.50% to $67.65 a barrel as an abundance of supply continues to cause headwinds.  The U.S. dollar index jumped to 96.34 from 95.21 and can be mostly attributed to the financial turmoil in Turkey.

 

Index Started Week Ended Week Change Change % YTD %
DJIA 25,462.58 25,313.14 -149.44 -0.59% 2.40%
Nasdaq 7,812.01 7,839.11 27.10 0.35% 13.55%
S&P 500 2,840.35 2,833.28 -7.07 -0.25% 5.97%
Russell 2000 1,673.37 1,686.80 13.43 0.80% 9.85%

 

THIS WEEK’S HIGHLIGHTS

 

  • The number of U.S. job openings saw a marginal increase in June, reaching 6.66 million from the prior week’s reading of 6.64 million. Despite virtually no change, the number of job openings still remains abundant as there is a lack of supply of skilled workers.

 

  • Initial unemployment claims dropped by 6,000 for the week ending August 4th to a total of 213,000. The less volatile 4-week average was nearly unchanged, dropping a moderate 250 to a total of 214,250.  Continuing unemployment claims rose by 29,000 to 1.76 million, however the 4-week average dropped by 4,000 to 1.74 million.

 

  • Producer prices (as measured by PPI) were surprisingly unchanged for the month of July, as analysts were expecting a rise of 0.3%. With producer prices being unchanged for the month, it brought the year-over-year down one tenth of a percent to 3.3%.  Core PPI, which excludes the volatile food and energy components, rose 0.1% for the month and 2.7% year-over-year.

 

  • Consumer prices (as measured by CPI) moved slightly upward for the month of July, rising 0.2% for a year-over-year change of 2.9%. Core CPI, which excludes the volatile food and energy components, also rose 0.2% for the month but for a year-over-year change of 2.4%.

 

QUOTE OF THE WEEK

“The only thing more dangerous than something you made up is something you think you discovered and have evidence for, but is still wrong.”

– Morgan Housel

 

 

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