US Capital Markets Review 6/29/18
This week was a poor one for the US capital markets, with all major indicies retreating. The S&P 500 was down -1.3% for the week, while the Nasdaq was down -2.4% for the week. The week started out terribly, but stocks bounced back on Friday to make the weekly losses stomach-able.
Commodities in general struggled as well, with Oil being the main exception. Crude oil continued its run which has been fueled (pun intended) by global shortages – oil was up +8.4% per barrel, which summer travelers will feel immediately at the gas pump. Gold was down -1.4% to $1,253 per ounce and silver was down -2.2% to $16.12 per ounce.
Cryptocurrencies managed to halt their recent fall with Bitcoin up +3% for the week, currently at $6,355. Steem was up +17% for the week, closing at $1.56. EOS continues to struggle and was down -4% for the week, closing at $8.00.
On the news front, the markets were largely skiddish this week due to continued trade war talk and harsh rhetoric, much of with is coming from the US side. Consumer confidence remains high, unemployment is at 3.8% and the consumer price index is looking good with acceptable, steady amounts of inflation. Home prices are up 6.6% year over year, which also bolsters consumer confidence and may have them spending more or going on more expensive vacations.
Overall, I do not see too many near term catalysts to make the markets move higher, but also do not see too many roadbumps either. I continue to remain fully invested.