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Weekly Investment Perspective

Keep up-to-date with our Weekly Investment Perspective.

Stocks had modest losses on light trading volume Friday, with Amazon dropping the most in more than a year after reporting its first quarterly revenue miss in three years and providing disappointing guidance. But the major averages wrapped up a strong month, even as volatility has increased alongside concerns about the economic recovery with the spreading of the COVID-19 delta variant.

Sweeping crackdowns across China continued to send shockwaves across financial markets, with investors finding themselves in the firing line of some of the nation's hottest sectors. Another contentious meeting between Washington and Beijing proved unsuccessful on Monday, with Vice Foreign Minister Feng saying the relationship was at a "dead end" and risks "serious consequences." He even presented U.S. Deputy Secretary of State Wendy Sherman with two lists of "red lines" that were necessary to stabilize ties going forward.

This week may bring the next round of US debt ceiling concerns. The Treasury will use the first of its so-called "extraordinary measures," which will suspend sales of securities that help states and municipalities invest bond proceeds. Others will take months to kick in, and starting in October or November, the Congressional Budget Office predicts the Treasury will run out of cash. While raising the debt ceiling has turned into a bitter partisan issue in recent years, both sides have always reached a late deal to avoid the country going into default.

On Friday, the Labor Department will release data that will show whether a hiring burst in June continued in July. Economists will also learn whether the reopening of the economy is drawing back the millions of workers who left the labor force during the pandemic.

Robinhood, the mobile brokerage company that is popular amongst young people, went public last week under the ticker HOOD. The Wall Street Journal reported that Robinhood sold more than 300,000 shares to its customers through their IPO access service at $38/share, which valued the company at $32 billion. It closed that day down 8% at 34.82.

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Previous Perspectives

Weekly Investment Perspective May 11, 2021

May 11, 2021
Despite an underwhelming employment report on Friday, U.S. equities edged higher last week driven by continued focus on reopening momentum and rising corporate earnings expectations amid strong first quarter results. For the week, the S&P 500 and Dow Jones gained 1.3% and 2.7% respectively, but the tech heavy Nasdaq Composite fell -1.5% as the rotation out of expensive, high-growth stocks into cyclical stocks leveraged to the economic reopening gained traction

Weekly Investment Perspective May 4, 2021

May 4, 2021
U.S. equity markets broadly moved sideways last week but closed out the month of April with the highest monthly gain since November amid a streak of strong earnings reports and continued signs of a robust U.S. economic recovery powered by stimulus and the vaccine rollout. The S&P 500 gained 5.3% for the month of April, bringing its year-to-date performance to 11.8%, while the Nasdaq Composite and Dow Jones advanced 5.4% and 2.8% for the month, respectively, with tech stocks retaking the lead on strong earnings results.

Weekly Investment Perspective April 27, 2021

April 27, 2021
Despite another strong week of corporate earnings announcements, U.S. equity markets took a pause from their year-to-date surge last week as market participants digested the announcement of President Biden’s proposal to increase the capital gains tax rate for high income households and monitored concerning global trends in Covid-19 cases. The major U.S. equity indices ended the week in the red but recouped most of their losses on Friday following robust economic data including indications of growing demand for the U.S. service sector and a 20% month-over-month increase in new home sales in March. The S&P 500 ended -0.1% lower for the week and the Dow Jones and Nasdaq Composite were down -0.4% and -0.3%, respectively.

Weekly Investment Perspective March 30, 2021

March 30, 2021
Despite an eventful week with a large segment of global trade stalled by a massive cargo ship stuck in the Suez Canal and the unwinding of an overleveraged hedge fund, equity markets broadly were undeterred with the S&P 500 and Dow Jones pushing to new all-time highs last week. Positive investor sentiment was aided by encouraging news on the vaccine rollout and the Federal Reserve’s decision to end restrictions on dividends and buybacks for U.S. banks.