Author: Zac Martin, Investment Associate
Week Ending July 12th – Release Valve
- 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).
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