U.S. stocks rallied, while global markets lagged. The S&P 500 rose 0.8%. Global stocks slipped as the MSCI ACWI fell 0.2%. The Bloomberg BarCap Aggregate Bond Index rose 0.1%.
July’s performance was very positive. The S&P 500 rose 3.6%, and global stocks climbed 2.9%. Value stocks performed very well, too, after lagging growth in recent years. The Russell 1000 Value Index rose 4%, while the Russell 1000 Growth Index rose 2.9%. The aggregate bond index produced flat returns in July.
Key points for the week
- The July jobs report continued to show a robust U.S. jobs market.
- Value stocks outperformed growth in July, following months of underperformance.
- Apple became the first company to reach a $1 trillion market value.
The U.S. jobs market remains robust. The July jobs report released last week showed 157,000 jobs created, missing the 190,000 estimate. The report pushed unemployment down to 3.9%, which many consider to be full employment by historical standards. The rate considered most important is annual wage growth, which ticked up a little higher to 2.7%. Wage growth had been inching higher, reflecting the overall strength of the economy. Some reports suggested layoffs at Toys R Us, which is shutting down, caused the overall number to miss targets. Previous months’ reports were increased and more than offset the lower-than-expected increase in July.
Apple hit a milestone that no other company in history has ever reached before: $1 trillion in market value. This occurred after its strong second-quarter earnings report pushed the stock up 2.92%. This feat illustrates the change in corporate landscape from industrials toward technology. Incidentally, the first company to hit $1 billion in market-cap was U.S. Steel.
Companies like Amazon have made online purchasing so simple that consumers can click and buy anytime and anywhere. However, this has led to a drinking-and-buying problem. The U.S., on average, spends $448 per person on drunk purchases. This totals more than $1 billion per year! Unfortunately, this problem can’t be blamed on millennials. Generation X spent the most per person at $738, while millennials spent $206.
This newsletter was written and produced by CWM, LLC. Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. The views stated in this letter are not necessarily the opinion of any other named entity and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results.
S&P 500 INDEX
The Standard & Poor’s 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.
MSCI ACWI INDEX
The MSCI ACWI captures large- and mid-cap representation across 23 developed markets (DM) and 23 emerging markets (EM) countries*. With 2,480 constituents, the index covers approximately 85% of the global investable equity opportunity set.
Bloomberg U.S. Aggregate Bond Index
The Bloomberg U.S. Aggregate Bond Index is an index of the U.S. investment-grade fixed-rate bond market, including both government and corporate bonds.