Disclosures:
Investment advisory services offered through Foundations Investment Advisors, LLC (“Foundations”), an SEC registered investment adviser. The commentary on this website reflects the personal opinions, viewpoints and analyses of the authors, Ben Fuchs and Fuchs Financial, providing such comments, and should not be a description of advisory services provided by Foundations or performance returns of any Foundations client. The views reflected in this commentary are subject to change at any time without notice. Nothing on this website constitutes investment, legal, or tax advice, performance data, or any recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. Personal investment advice can only be rendered after the engagement of Foundations for services, execution of required documentation, including the receipt of required disclosures. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Foundations manage its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Any statistical data or information obtained from or prepared by third party sources that Foundations deems reliable but in no way does Foundations guarantee the accuracy or completeness. Investments in securities involve the risk of loss. Any past performance is no guarantee of future results. Advisory services are only offered to clients or prospective clients where Foundations and its advisors are properly licensed or exempted. For more information, please go to https://adviserinfo.sec.gov and search by our firm name or by our CRD #175083.
Fuchs Financial is not connected with or endorsed by the U.S. government or associated with any federal Medicare program. We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.Gov or 1-800-MEDICARE to get information on all of your options.
Fuchs Financial is not endorsed or affiliated with the Social Security Administration or an U.S. government agency.
All testimonials on this page are unpaid and unsolicited client testimonials. All clients have had a financial relationship with Ben Fuchs and Fuchs Financial for over 6 months and are providing their personal opinion. This may present a conflict of interest as each particular client’s testimonial may or may not be the same as another client’s experience. This conflict is mitigated by our financial advisor’s fiduciary duty to tailor each client’s investment objectives to each individual client’s own financial situation. There was no compensation paid to the client for this testimonial. A client testimonial does not guarantee future investment success and should not be indicative that any client or prospective client will experience the same or a higher level of investment performance. Foundations Investment Advisors, LLC is an SEC registered investment adviser. Past performance is not indicative of future results.
Your Market Update For The Week Of 7/28/2024
In This Article...
Market Commentary By Darren Leavitt, CFA
Financial markets traded mixed last week. News on Sunday that President Biden had decided not to pursue reelection and endorse his Vice President Harris induced a reassessment of the political landscape. However, the overall reaction in the market seemed to be already priced in, and the initial moves in the market were relatively muted. Some polls now suggest Harris is even with Trump on her election chances.
The week was extremely busy, with second-quarter earnings showing mixed results. Google and Tesla set a negative tone for the Magnificent 7. Apple, Meta, and Microsoft will report their Q2 results this week. I thought Google had a fantastic quarter, but investor expectations were extremely high. The street seemed to question higher capital expenditures on AI, which still has quite a few unknowns regarding return on investment. Tesla posted an awful quarter with another decrease in margins, decreased delivery expectations from the prior year, and an affirmation that their Robo-taxi initiative had been postponed until October- interestingly, most of this information was already known. Google shares fell 6% on their report, while Tesla’s shares tumbled 8.1% and helped to send the Mega-cap index down 2.8% on the week. Positive results included IBM, Service Now, MMM, Norfolk Southern, Spotify, and Lockheed Martin. UPS, Honeywell, SAIA, and Ford posted disappointing results.
The S&P 500 lost 0.8%, the Dow added 0.7%, the NASDAQ fell by 2.1%, and the Russell 2000 continued to outperform with a 3.5% advance. Yields on the short end of the curve outperformed the longer end with a steepening effect. The 2-10 spread now sits at nineteen basis points. The 2-year yield fell by twelve basis points to 4.39%, while the 10-year yield decreased by four basis points to 4.20%. Oil prices were soft again, losing 2.8% to $77.08 a barrel. Gold prices fell 0.8% to $2381.50 a barrel. Copper prices continued to get crushed, losing 3.1% to $4.11 per pound.
The economic calendar gave no reason for the Federal Reserve to withdraw from an anticipated 25 basis point rate cut in September. A preliminary look at Q2 GDP showed more robust growth than expected, growing at 2.8% versus the consensus estimate of 1.9%. The GDP Deflator also showed progress in pricing, falling to 2.3% versus an estimated 2.6%. Personal Income was lighter than expected at 0.2%, while Personal Spending came in line with expectations at 0.3%. The Fed’s preferred measure of Inflation, the PCE came in line on the headline and core number at 0.1% and 0.2%, respectively. On a year-over-year basis, the Core reading fell to 2.5% in June from 2.6% in May, while the Core reading was unchanged from May at 2.6%. Initial Claims fell by 10k to 235k, and continuing Claims decreased by 9k to 1860k. The final July reading of the University of Michigan’s Consumer Sentiment index came in at 66.4 and reflected continued concerns about Inflation, employment, and uncertainty about the current state of politics.
Ben Fuchs
Also From Fuchs Financial...
Retirement Planning Guide For Lawyers in Connecticut
How to Plan Your CT Teachers Retirement: A Step-by-Step...
How To Choose The Right Financial Advisor in Connecticut
Let's Start Planning
Our Clients Say