Markets in a Minute - Release Valve

Insights | Markets in a Minute - Release Valve

Author: Zac Martin, Investment Associate

Week Ending July 12th – Release Valve

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  • Last week saw the largest Nasdaq (QQQ) underperformance relative to small caps (IWM) in over 20 years. (Chart)
  • The Consumer Price Index for June reported cooler than expected numbers, decreasing to 3.0% year-over-year. Services have continued to see disinflation but remain relatively high. (Chart)
  • NFIB Small Business Optimism Index continues to climb, some key findings revealed that a net 22% of owners plan to raise employee compensation over the next three months, up 4 percentage points in May. Additionally, net negative 2% of owners viewed current inventory as “too low” and plan to increase inventory investment.
  • Earnings: Several major banks reported on Friday. The general theme continues to be Net Interest Income (NII) being squeezed as higher rate persist. However, Wells Fargo affirmed NII to be on the lower end of guidance and raised forward expenses.

The week ahead: 

  • Retail Sales (7/16)
  • Housing Start & Building Permits (7/17)
  • Industrial & Manufacturing Production (7/17)
  • Leading Economic Indicators Index (7/18)
  • Earnings: UNH, PGR, BAC, MS, STT & JBHT (7/16), ELV, CFG, JNJ, PLD, DFS, UAL & CCI (7/17), DHI, DPZ, ABT & NFLX (7/18), AXP & FITB (7/19).

HORAN Capital Advisors, LLC is an SEC registered investment advisor. The information herein has been obtained from sources believed to be reliable but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results. Market conditions can vary widely over time and there is always the potential of losing money when investing in securities. HCA and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only and is not intended to provide and should not be relied on for tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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