The Week in Review: 6/24/2024

“A champion is someone who gets up when he can't.” – Jack Dempsey

Good Morning ,

The markets rallied again last week, marking the third consecutive weekly gain for both the S&P 500 and Nasdaq. The Dow performed the best last week thanks to advances in the consumer discretionary, financials, and industrials sectors, which were the top performers.

Technology lagged for the week due to a decline in AI-based stocks on Thursday and Friday, including several chipmakers. Nvidia temporarily became the most valuable company in the world earlier last week, surpassing Microsoft and Apple for the top spot. Ultimately, the stock sold off, losing the title. The three tech giants are all worth north of $3 trillion as of Friday’s close and will likely continue to vie to be number one.

However, the tech rally didn't stall entirely. Despite the AI sell off late last week, companies like Microsoft, Cisco, and Intel continued to keep sector momentum alive -- with the biggest gaining sectors energy, consumer discretionary, and financials.

Retail purchases increased 0.1% in the month of May. April’s report was also revised downwards to a 0.2% decline for the month. Year over-year, sales are up 2.3%.

Five of the 13 categories showed declines during the month, including gasoline. If gasoline was excluded, overall sales would have increased 0.3% for the month. The largest increases were in sporting goods, hobby, musical instrument, bookstores, and clothing stores.

Market Snapshot…

• Oil Prices – Oil prices gained for a second week in a row as gasoline demand climbed to post-pandemic highs. West Texas Intermediate crude was down 56 cents, or 0.69% but was still up to $80.73 a barrel, while Brent crude futures was down 47 cents, or 0.55% to $85.24 a barrel.
• Gold– Gold prices dropped more than 1% due to a stronger dollar and higher bond yields. Spot gold was down 1.7% at $2,319.95 per ounce. U.S. gold futures settled 1.6% lower to $2,331.20. Silver finished the week at $29.614.
• U.S. Dollar– The dollar edged higher last week, responding to a strong economy, and hitting an eight-week high at 0.2% at 105.81. The dollar index rose 0.16% to 105.390. Euro/US$ exchange rate is now 1.075.
• U.S. Treasury Rates– U.S. Treasury yields changed little Friday. The U.S. 10-year Treasury yield was less than a basis point higher at 4.255%.
• Asian shares were mostly lower in overnight trading.
• European markets are higher.
• Domestic markets are trading comfortably in the green this morning.

This week’s highlights will be Friday’s PCE report and a final look at first quarter GDP on Thursday. On top of that, we'll receive several reports pertaining to the housing market: New Home Sales on Wednesday and the House Price Index on Tuesday. There will also be several speeches from Fed governors and members regarding interest rates.

Have a wonderful week!!!

The opinions expressed herein are those of Michael Hilger and not necessarily those of Raymond James & Associates, Inc., and are subject to change without notice. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. There is no assurance any of the trends mentioned will continue or forecasts will occur. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Investing involves risk and you may incur a profit or loss regardless of strategy selected.

The information contained herein is general in nature and does not constitute legal or tax advice. Inclusion of these indexes is for illustrative purposes only. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor's results will vary. Past performance does not guarantee future results. The Dow Jones Industrial Average (INDU) is the most widely used indicator of the overall condition of the stock market, a price-weighted average of 30 actively traded blue chip stocks, primarily industrials. The Dow Jones Transportation Average (DJTA, also called the "Dow Jones Transports") is a U.S. stock market index from the Dow Jones Indices of the transportation sector, and is the most widely recognized gauge of the American transportation sector. m>Standard & Poor's 500 (SPX) is a basket of 500 stocks that are considered to be widely held. The S&P 500 index is weighted by market value, and its performance is thought to be representative of the stock market as a whole. The S&P 500 is an unmanaged index of widely held stocks that is generally representative of the U.S. stock market. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs and other fees, which will affect investment performance. Individual investor’s results will vary. The NASDAQ Composite Index (COMP.Q) is an index that indicates price movements of securities in the over-the-counter market. It includes all domestic common stocks in the NASDAQ System (approximately 5,000 stocks) and is weighted according to the market value of each listed issue. The NASDAQ-100 (^NDX) is a modified capitalization-weighted index. It is based on exchange, and it is not an index of U.S.-based companies.

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The companies engaged in business related to a specific sector are subject to fierce competition and their products and services may be subject to rapit obsolescence. There are additional risks associated with investing in an individual sector, including limited diversification.

Dividends are not guaranteed and must be authorized by the company's board of directors.

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The companies engaged in the communications and technology industries are subject to fierce competition and their products and services may be subject to rapid obsolescence.

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