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US Stocks Ended July 7, 2017
The S&P 500 started up 0.14% for the third quarter. Last week the index felt the positive effects of investor sentiment after payroll gains underscored the Federal Reserve's case for raising interest rates. Financial stocks were the best performing sector in the S&P 500 as the group rode the momentum of optimistic news outlined in the Fed's June minutes. Airline stocks, led by American Airlines and United Continental Holdings, benefitted from the decline in oil prices. U.S. stockpiles of oil have declined since the beginning of the year, and rising global output has offset supply cuts proposed by OPEC. The decline in crude resulted in Energy stocks being one of the worst performing groups in the market for the week. On the rebound were Information Technology holdings. After giving up some gains going into the end of the last quarter, the sector was the best performer in the S&P 500 last week. Advanced Micro Devices, a semiconductor manufacturer, and Applied Materials, a semiconductor equipment manufacturer, were two of the top performing stocks last week. The sector rallied after demand for semiconductors continues to accelerate despite lofty valuations. Next week should see the early effects of the aftermath of the Group of 20 summit in Hamburg, Germany. President Trump held firm on his America First message which is at odds with some of the other members of the G-20. The other main issue of contempt is climate change, after the President withdrew from the Paris climate accord last month. Saturdays talks at the summit will be closely watched by the global community and will shape investor's mood going into this week. Congress returns this week after the Independence Day recess. The chambers will be very active with health care and budget issues ahead of the August recess.
Monday, July 10, 2017 @ 8:14 AM
These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.