Winthrop Partners Market and Economic Update 7-12-21

The Markets (as of market close July 9, 2021)
The holiday-shortened week can best be described as volatile. Some observers suggest investors may be retreating from stocks over uncertainties surrounding the pace of economic recovery coupled with easing inflation expectations. For much of the week, stock values road a roller-coaster ride of ups and downs, while Treasury prices climbed, pulling yields lower.
The market was closed last Monday in observance of Independence Day. Last Tuesday saw the yield on 10-year Treasuries fall to 1.37%, their lowest level since February. Energy, materials, financials, and industrials fell. The Russell 2000 fell 1.4%, the Dow dropped 0.6%, the Global Dow lost 1.1%, and the S&P 500 dipped 0.2%. Only the Nasdaq was able to eke out a 0.2% gain. Crude oil prices declined, while the dollar advanced.
Stocks were mixed last Wednesday as the Nasdaq and the S&P 500 each closed with fresh record highs; the Dow gained 0.3% but the Russell 2000 and the Global Dow lost value. Rising prices on 10-year Treasury notes pulled yields lower to close at 1.32%. The dollar inched higher. The minutes from the last Federal Reserve meeting showed that policymakers were still cautious about the economic outlook and were willing to remain patient about making changes to current stimulus policies. Among the market sectors, energy fell, with crude oil prices falling to $74.72 per barrel. Industrials and materials continued to show strength.
Equities retreated last Thursday as the Nasdaq, the Dow, and the S&P 500 gave back gains from the previous day. Each of the benchmark indexes listed here lost at least 0.7%, with the Global Dow (-1.1%) and the Russell 2000 (-1.0%) falling the most. Prices on 10-year Treasuries continued to rise, with a corresponding drop in yields. Crude oil prices rose, while the dollar fell. Not unexpectedly, each of the market sectors declined, led by financials (-2.0%), industrials (-1.4%), materials (-1.4%), and communication services (-1.1%).
Stocks closed last Friday on a high note. Each of the benchmark indexes listed here posted solid gains, led by the Russell 2000, which jumped 2.2%, followed by the Global Dow (1.4%) and the Dow (1.3%). The yield on 10-year Treasuries advanced for the first time in eight sessions. Crude oil prices increased 2.4%, while the dollar dipped lower. Financials, energy, and materials were sectors that climbed at least 2.0% last Friday.
Otherwise, stocks closed the week with mixed returns. The Nasdaq, the Dow, and the
S&P 500 closed out the week ahead, while the Global Dow and the Russell 2000 lost
value. Treasury yields, crude oil prices, and the dollar declined. Gold increased 1.1% for
the week.
The national average retail price for regular gasoline was $3.122 per gallon on July 5,
$0.031 per gallon higher than the prior week’s price and $0.945 more than a year ago.
Gasoline production increased during the week of July 5, averaging 10.6 million barrels
per day, up from the prior week’s average of 9.6 million barrels per day. U.S. crude oil
refinery inputs averaged 16.1 million barrels per day during the week ended July 5; this
was 184,000 barrels per day less than the previous week’s average. For the week ended
July 5, refineries operated at 92.2% of their operable capacity, down from the prior
week’s level of 92.9%.  Click here for the complete article: Winthrop Partners Market and Economic Update 7-12-21