Market Perspective for July 8, 2019

Equities opened the week lower on Monday, with the S&P 500 Index declining 0.48 percent. A downgrade of Apple (AAPL) to sell by a single analyst pushed shares down 2.06 percent and contributed to the broader index weakness. SPDR Technology (XLK) slipped 0.74 percent.

A dip in interest rates boosted real estate and utilities. The 10-year Treasury yield fell to 2.03 percent. SPDR Real Estate (XLRE) rallied 0.37 percent and SPDR Utilities (XLU) rose 0.15 percent. SPDR Energy (XLE), Consumer Staples (XLP) and Consumer Discretionary (XLY) gained 0.14, 0.13, and 0.12 percent, respectively.

Shares in funds that own high quality and less volatility companies continue to outperform. iShares Edge MSCI Minimum Volatility USA (USMV) and Vanguard Dividend Appreciation (VIG) substantially beat the S&P 500 and other major indexes.

Small business confidence for June will be released tomorrow. The Job Openings and Labor Turnover Survey (JOLTS) for May is out as well. Prior surveys have shown more job openings than unemployed Americans, though a skills gap prevents many jobs from being filled. Consumer and producer price inflation for June will be released on Thursday and Friday.

Deutsche Bank announced layoffs and restructuring as it seeks a return to sustainable profitability. The news weighed on European and some American banks.

Crude oil gained slightly to close at $57.66 per barrel. Gold slid to $1400 an ounce. The U.S. Dollar Index strengthened 0.2 percent today.

Earnings season picks up this week with Delta Air Lines (DAL), Fastenal (FAST), WD-40 (WDFC), Bed Bath & Beyond (BBBY) and PriceSmart (PSMT) reporting.

 

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