Weekly Economic Summary - 7/31/2018Submitted by Miller Financial Group, LLC on July 30th, 2018
US stocks are being pushed down Monday following a week which saw mixed results for the broad benchmarks. The Dow Jones Industrial Average advanced 1.6% last week while the S&P500 added 0.6% as investors celebrated mostly positive Q2 earnings results. The tech-heavy NASDAQ was the lone laggard last week, as disappointing results from Facebook Inc. weighed heavily on the index, resulting in a weekly loss of -1.1%.
Pressure on the tech sector is persisting into the new week with early losses showing up across the board for US stocks. The NASDAQ again is leading the decline as investors appear nervous that a rotation out of the ‘FAANG’ stocks might be underway. The tech sector, led in large part by the FAANG’s (Facebook, Apple, Amazon, Netflix, Google), has surged nearly 8% in the month of July, leading many market strategists to believe the sector is simply in a consolidation phase. However, the fear that a larger rotation away from the leadership group of these momentum stocks has many investors on edge this morning.
This week is shaping up to be a busy one. Earnings reports will continue to pour in with notable reports coming from Apple, Tesla, Caterpillar, and Proctor & Gamble. The economic calendar is filled with market moving data including reports on consumer confidence, construction spending, auto sales, factory orders, and the Department of Labor Jobs report. Investors will also hear from several central banks this week with policy decisions expected from the Federal Reserve, Bank of Japan and the Bank of England.
It’s a busy week and undoubtedly will be filled with loads of headlines, high trading volumes and the potential for a return of market volatility.
Have a great week!