Price Price Returns Index Close Week YTD

Weekly Market Recap

September 7, 2021

Price Price Returns

Index

Close Week YTD

S&P 500 Index

4,535 0.6% 20.7%

Dow Jones Industrial Average 35,369 -0.2% 15.6%

NASDAQ

15,364 1.5% 19.2%

Russell 2000 Index

2,292 0.7% 16.1%

MSCI EAFE Index

2,385 1.5% 11.1%

10-yr Treasury Yield

1.32% 0.0% 0.4%

Oil WTI ($/bbl)

$69.10 0.5% 42.4%

Bonds*

$115.86 -0.2% -0.6%

Source: Bloomberg, FactSet

*Bonds represented by the iShares U.S. Aggregate Bond ETF

Last Week:

U.S. Equity Market ? U.S. large cap equities (S&P 500? Index) rose +0.6%, as investors digested Federal Reserve Chair Powell's Jackson Hole speech last Friday, where he reiterated a transitory view on inflation and implied tapering of the Fed's $120B/month asset purchases by the end of the year. Nonfarm payrolls increased by only 235k in August, well below the expected ~725k, and the Citi U.S. Economic Surprise Index deteriorated further this week, as the spread of the Delta variant seemed to be a bigger drag than expected. The path to additional fiscal stimulus remained complicated, as Senator Joe Manchin called for a "strategic pause" on the reconciliation bill. Treasuries were mixed amid some curve steepening, as the ten-year yield rose 0.02% to 1.32%, the dollar fell ~0.6%, gold rose +0.8%, and WTI crude oil rallied +0.5%. ? S&P 500 Index Sector Returns:

o REITs (+4.0%), consumer staples (+1.5%), and utilities (+1.4%) outperformed, as investors favored more defensive-oriented sectors.

o Health care (+1.7%) rose, led by med-tech, managed care, and biotech stocks. o Consumer discretionary (+1.2%) outperformed, led by Amazon (+3.8%), despite weakness in

retail, homebuilders, and autos. o Communication services (+1.0%) rose, led by Netflix (+5.7%), Facebook (+1.0%), and telecom. o Information technology (+0.9%) outperformed, with strength in Apple (+3.8%), and other hardware

stocks, while credit card names struggled with interchange and competition concerns. o Industrials (-0.4%) fell, led lower by building materials and airlines.

o Materials (-0.9%) fell, led lower by industrial metals, particularly steel. o Energy (-1.4%) underperformed, as oil (WTI) was nearly flat.

o Financials (-2.5%) fell, with weakness from banks, particularly Wells Fargo (-11.3%), which could face additional regulatory actions.

Past performance is not indicative of future results. Any type of investing involves risk and there are no guarantees. Please reference important disclosures on page 10.

1

Weekly Market Recap

September 7, 2021

? In August, financials, communication services, momentum, and growth equities outperformed, while energy, industrials, staples, low volatility/high dividend, and value stocks underperformed.

Source: The Daily Shot

? The S&P 500 Index hit 53 new highs this year, a new record for the first eight months of a calendar year.

Source: The Daily Shot Past performance is not indicative of future results. Any type of investing involves risk and there are no guarantees. Please reference important disclosures on page 10.

2

Weekly Market Recap

September 7, 2021

? The S&P 500 Buyback Index shows that the top 100 stocks with the highest buyback ratio saw a faster rebound in free cash flow compared to the increase in stock buybacks, suggesting that buybacks could increase to historical levels, where buybacks match or even exceed free cash flow.

Source: The Daily Shot

? Sectors with the highest buybacks have historically outperformed, and the longer the holding period, the greater the probability (hit rate) that those stocks outperformed.

Source: The Daily Shot Past performance is not indicative of future results. Any type of investing involves risk and there are no guarantees. Please reference important disclosures on page 10.

3

Weekly Market Recap

September 7, 2021

? Bank of America is expecting a global deceleration in earnings over the next 3-4 months as comparisons become increasingly more difficult.

Source: The Daily Shot

? Historically, September can be a challenging month for equity returns.

Source: The Daily Shot Past performance is not indicative of future results. Any type of investing involves risk and there are no guarantees. Please reference important disclosures on page 10.

4

Weekly Market Recap

September 7, 2021

? Despite the smaller-than-expected increase in nonfarm payrolls this week, the rebound in jobs so far is impressive, well ahead of the pace of recovery following the global financial crisis in 2007.

Source: The Washington Post

Past performance is not indicative of future results. Any type of investing involves risk and there are no guarantees. Please reference important disclosures on page 10.

5

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download