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Last Week's Market Recap and the Week Ahead Thumbnail

Last Week's Market Recap and the Week Ahead

Last week's market recap:
  • The S&P 500 was down -.91% for the week.  Year-to-date the index is down -18.27%.
  • NASDAQ closed the week down -1.57% and is down -26.50% YTD.
  • 10-Year Treasury Rate decreased, ending the week at 2.93% from 3.09% the prior week.
  • The 1-Year Treasury is yielding 3.13%
    • Fed Funds Target rate is 1.75%
The week ahead, 7/18: 
  • Corporate Earnings (Big banks, IBM, J&J, Netflix, Tesla, AT&T, Lockheed Martin and more)
  • Housing Starts, building permits, and existing home sales
  • European Central Bank expected to raise interest rates .25%
Quick Comments:
Higher energy and food prices bumped inflation higher again in June.  We still expect that the Fed will hike interest rates by another 0.75% later this month; however, the odds of a 1.00% rate hike have increased.
Positive notes:
1) There are signs of inflation peaking.  Oil and gas prices have dipped, down 11% and 4% from June.  Many other commodities such as, wheat, nat gas, copper, lumber, and cotton are also down.  If these trends continue, June may mark the last hot month of headline inflation.  This should provide some inflation relief to the Fed and consumers.  
2)  Expected 10-year asset class returns have risen.  Markets have been hit hard this year, but there is upside to down markets… lower valuations and higher interest rates means models suggest higher expected long-term results.

As always, reach out to us with any questions.


CRA Investment Committee

Matt Reynolds CPA, CFP®   

Tom Reynolds, CPA     

Robert T. Martin, CFA, CFP®      
Gordon Shearer Jr., CFP®

Jeff Hilliard, CFP®, CRPC®      
Joe McCaffrey, CFP®




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