📈 Week 28 (8-14 July 2024) Market Summary

US Stocks (Major Indices), Sector and Asset Class rotation, The Magnificent Seven, Global Stock Indices, Volatility, Major Economics Announcements and Earnings Reports

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Jul 14, 2024

Hello! 👋

Let’s see what we’ve been up to this week.

1. US Stocks (Major Indices)

S&P 500, NASDAQ 100, DJIA, RUSSELL 2000 (8-12 Jul 2024)

Russell 2000 (RTY) was on the rise (+6.14%) after the CPI report on Thursday.

US Stocks weekly change % Map (source: finviz.com)

Nasdaq 100 returned +22.89% so far in 2024, S&P 500 - +18.40%, Russell 2000 +6.48% and Dow Jones Industrial Average +6.06% in 2024.

S&P 500 Price/Earnings (PE) Ratio (source: Multpl.com)

2. US Stocks by Sector

XLC - Communication Services,
XLK - Technology,
XLP - Consumer Staples,
XLE - Energy,
XLY - Consumer Discretionary,
XLF - Financials,
XLI - Industrials,
XLB - Materials,
XLV - Health Care,
XLU - Utilities,
XLRE - Real Estate,
SPY - S&P 500.

3. The “Magnificent Seven”

The “Magnificent Seven” stocks this week

Apple Inc (AAPL), Microsoft Corp (MSFT), NVIDIA Corp (NVDA), Alphabet Inc (GOOG), Amazon.com Inc (AMZN), Meta Platforms Inc (META), Tesla Inc (TSLA).

The “Magnificent Seven” stocks Year-To-Date

4. Asset Class Rotation (Stocks, Currencies, Commodities, Bonds)

Wheat (-9.26%), Corn (-13.36%) and Natural Gas (-8.39%) are down this year. US Treasuries are up 6.40%. Metals (Gold and Copper) and S&P500 are up almost 20%. Bitcoin is up 28.73%.

5. Global Stock Markets

USA (SPX) - S&P500 Index,
UK (UKX) - FTSE100 Index,
Europe (STOXX50) - EURO STOXX 50 Index,
Japan (NI225) - Nikkei225 Index,
China (HSI) - Hang Seng Index,
India (NIFTY) - Nifty50 Index,
Brazil (IBOV) - BOVESPA Index.

USA, UK, Europe, Japan, China, India, Brazil (8-14 Jul 2024)

6. Volatility

Term Structure of Volatility Futures (source: vixcentral.com)

VIX index closed around it’s 50-day Moving Average meaning that there is not much fear in the market.

Volatility of Volatility Index indicates that there is not much demand for VIX index based products, therefore not much hedging is going on.

7. US Treasuries

8. Major Economic Announcements

Economic Calendar, week 28 (source: Investing.com)

Inflation as measured by the Consumer Price Index fell 0.1% in June, its lowest monthly growth rate since May 2020. (read more)

U.S. producer prices (PPI) increased slightly more than expected in June amid a rise in the cost of services, but that did not change expectations that the Federal Reserve could start cutting interest rates in September. (read more)