Investment Commentary –July 3rd, 2017

Market Indices as of Market Close July, 3rd, 2017

Dow 21,479 (8.69% YTD)
S&P 2,429 (8.49% YTD)
NASDAQ 6,110 (13.50% YTD)
Gold $1,221 (5.32%)
OIL $47.02 (-17.36%)
US 10Y Treasury 2.35 (-9.53%)
Barclay Bond Aggregate (2.95% YTD)

Dow, S&P 500 kick off July with gains, but tech fizzles

U.S. stocks on Monday closed the first day of trading in July and the second half of 2017 in positive territory—though off the day’s best levels—on the back of a rally in energy and financials, but tech shares lagged behind.

Gains accelerated in an abbreviated session ahead of the Fourth of July holiday on Tuesday, after an upbeat report on manufacturing.

The Dow Jones Industrial Average DJIA, +0.61% climbed 129.64 points, or 0.6%, closing at 21,479.27, finishing well off its intraday record of 21,562.75. Blue chips were aided in part by a rally in shares of Walt Disney Co. DIS, +1.14% on speculation that the entertainment giant might strike a deal with Verizon Communications Inc. VZ, +0.76%

Around the Web:

A mixed June
The major indexes were little changed overall for June as volatility remained historically low, despite a few bumps, mainly in the information technology sector. The Dow climbed 1.6%, the S&P 500 eked out a 0.1% gain, and the NASDAQ slipped 0.9%.

Midyear checkup
It was a strong first half of the year overall for U.S. stocks, although the rapid pace of gains at the start of the year slowed in the spring. Through June, the price returns of the S&P 500 and the Dow were both around 8%, while the NASDAQ was up more than 14%.

Technology drag
The information technology sector has been volatile lately, and it had another tough day on Tuesday as the NASDAQ dropped 1.6%. The S&P 500 posted a smaller decline, but had its worst day in more than a month

Global gains
An analysis by The Wall Street Journal shows how broadly stocks have rallied in the first half of the year. All but four of the world’s thirty largest indexes as measured by market capitalization have risen year to date. That result that hasn’t been matched since 2009, the first year of the recovery from the global financial crisis.

On Tap for the rest of the week:
Wednesday : Release of minutes from June 13–14 meeting of the U.S. Federal Reserve Board
Friday: Monthly jobs and unemployment report, U.S. Bureau of Labor Statistics.

This past week’s leaders were Financials and Basic Materials. Laggards included Utilities, Healthcare and Technology.

On this day in 1840, the Independent Treasury Act was passed. A powerful interest group called the “Locofocos” supported this bill, along with President Van Buren. The bill met much opposition but finally passed on this day in 1840. This bill established an “independent” treasury responsible for government transactions.

The views presented are not intended to be relied on as a forecast, research or investment advice and are the opinions of the sources cited and are subject to change based on subsequent developments. They are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investments.