Major stock indices, with the exception of the small cap Russell 2000, gained for the week with Chinese stocks gaining the most. U.S. stocks rose, despite an increase in Covid cases across the sunbelt, as data points to a gradually improving world economy. Also, stocks were boosted on Friday following the report of an anti-viral drug reducing the Covid death rate.
Treasury yields fell with the 30-year bond ending at 1.337% and the 10-Year note at 0.641%. Crude oil rose to $40.58 a barrel and natural gas rose to $1.812 per MMBTUs. The U.S. dollar index ended the week lower at 96.67 and gold prices rose to $1802.30 an ounce.
In the economic numbers this week:
- Canada added 952,900 jobs in June and the unemployment rate fell from 13.7% in May to 12.3%.
- IHS Markit released its survey of non-manufacturing purchasing managers and reported the following PMIs. Keep in mind that anything below 50 represents contraction and anything over 50 represents expansion:
- US services PMI was 47.9 in June up from 37.5 in May.
- Eurozone services PMI was 43.1 in June up from 37.2 in May.
- China services PMI was 58.4 in June up from 55.0 in May.
- Japan services PMI was 45.0 in June up from 26.5 in May.
- China reported:
- Producer prices were 3.0% lower in June that a year ago. That is better than May when produce prices were down 3.7% year over year.
- Consumer prices rose 2.5% in June from a year ago. Core consumer prices excluding food and energy rose 0.9%, down from 1.1% in May..
- The Labor Department reported:
- 1.3MM workers filed initial unemployment claims last week, down from 1.43MM in the prior week.
- Ongoing claims for unemployment fell slightly to 18.1MM.
- The EIA weekly oil report is here: wpsrsummary (7). Also, the EIA reported in the past week:
- Field production of crude oil was unchanged at 11.0MM barrels per day. The peak production at the end of February was 13.1MM barrels per day.
- Natural gas storage rose by 56BN cubic feet and is above the five year average at this time of year.
- Baker Hughes reported the number of active oil rigs fell 4 to 181 and the number of active natural gas rigs fell 1 to 75.
Please call us if you have any questions.
Loren C. Rex, CFP®, AIF®, MA Erik A Smith AIF®
President Managing Partner
Generations Financial Planning & Wealth Management 269-441-4143
77 E. Michigan Ave, Suite 140
Battle Creek, MI 49017
Carrie Fuce, Assistant 269-441-4091
Toll Free: 800-513-8180
Visit our Website: www.genfinplan.com
Registered Representative of and securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and Generations Financial Planning & Wealth Management are separate companies and are not affiliated.
These are the opinions of Loren Rex and Erik Smith and are not necessarily those of Cambridge, are for informational purposes only, and should not be construed or acted upon as individualized investment advice. The Indices mentioned are unmanaged and cannot be invested into directly.