LCG Associates, Inc.

Weekly Market Update: U.S. stocks moved up over the week on Fed signaling for a possible September rate cut. Returns were broad-based, with small caps outperforming large caps. The S&P 500 Index returned 1.4% on a total return basis for the week. Existing home sales increased 1.3% in July, in line with expectations and breaking a stretch of four consecutive monthly declines. Longer-term bond yields fell and Treasuries rallied after annual job growth estimates were revised downward by 818,000 jobs through March, their largest downward revision since 2009. https://lnkd.in/dn_22Uh

We had an amazing time at Cristo Rey's Draft Day 2024! LCG is honored to partner with Cristo Rey Atlanta Jesuit High School's Corporate Work Study Program for the 11th year in a row. Our goal is to help students gain work experience and share capital markets knowledge that they can take with them beyond their time at LCG. We are looking forward to welcoming our CWSP students soon!

Weekly Market Update: The S&P 500 Index capped off its best week-to-date of 2024, gaining 3.99% on a total return basis. U.S. equities were propelled by cooling inflation data, better than expected retail sales, and a weak July jobs report. The consumer-price index rose 2.9% from a year earlier, the lowest reading since 2021 and slightly below economists’ expectations of 3.0%. Core inflation, which excludes volatile food and energy items, was 3.2%, also a three-year low. Gold reached a new record high on rising hopes for a U.S. interest-rate cut and geopolitical tensions. The spot price of gold per ounce closed at $2,508 on Friday. https://lnkd.in/dn_22Uh

Weekly Market Update: U.S. stocks closed flat to modestly lower for the week, on the mend from their biggest sell off in nearly two years on Monday. The CBOE Volatility Index (VIX), Wall Street’s so-called fear gauge, briefly spiked on Monday to 65.73, its highest level since March 2020, before falling back to 20.69 at the end of the week. The S&P 500 Index returned 0.0% on a total return basis over the week. Several major companies reported signs of weakening consumer demand during earnings calls. Airbnb, Marriott, Hilton, Delta, United, and Disney all reported softer travel demand, while Yum! Brands referenced slowing sales at its KFC and Pizza Hut franchises. Weekly jobless claims fell to 233,000 from an upwardly revised 250,000 the week before; however, the number of continuing claims rose slightly to 1.875 million. The 10-year Treasury yield increased to 3.94% from 3.80% the week before, while the 2-year yield increased to 4.05% from 3.88% the week before. https://lnkd.in/dn_22Uh

Weekly Market Update: U.S. equities retreated after a volatile week as the July jobs reports showed signed of slowing growth and unemployment rose. The S&P 500 declined 2.05% during the week on a total return basis while the Nasdaq composite entered correction territory. Hiring slowed to 114,000 jobs last month as some investors questioned if the Federal Reserve is already behind the curve on trimming interest rates. The unemployment rate rose to 4.3%, its highest level since 2021. The 10-year Treasury yield posted its largest one week decline since the beginning of the pandemic in 2020, ending the week at 3.79%. https://lnkd.in/dn_22Uh

Weekly Market Update: U.S. stocks moved lower over the week, as a rotation towards value and more cyclical sectors outpaced mega-cap technology names that have led the market for much of the year. The S&P 500 Index declined 0.8% on a total return basis. Real gross domestic product (GDP) in the U.S. increased at an annual rate of 2.8% in the second quarter of 2024, according to the "advance" estimate released by the Bureau of Economic Analysis, well above expectations and double the pace of the first quarter. Much of the gain came from consumer spending, inventory investment, and business investment. Sales of new single-family homes fell to 617,000 in June, well below expectations of around 640,000 and their lowest since November. Average sale prices fell approximately 4% from the year before.   https://lnkd.in/dn_22Uh

Weekly Market Update: U.S. equities capped off a volatile week as investors have been rotating out of mega-cap Technology names and largely into areas of the market that would benefit from a potential rate cut such as small cap stocks. The S&P 500 Index declined 1.95% while the Russell 2000 Index gained 1.69% for the week. CrowdStrike, a provider of malware and virus protection to a vast number of companies including banks, hospitals, and airlines, filed an update that caused outages for millions of users of Microsoft Windows devices worldwide on Friday. CrowdStrike’s stock tumbled over 11% during the disruption. President Biden announced his decision to end his re-election campaign. Uncertainty generated by this unprecedented news is expected to increase volatility in the markets. The US general election takes place 106 days from Monday. https://lnkd.in/dn_22Uh

Weekly Market Update: In a notably broad advance, U.S. stocks moved higher over the week on moderating inflation readings. The S&P 500 Index moved up 0.9% on a total return basis. The Consumer Price Index (CPI) fell -0.1% in June, marking its first decline in over four years, since May 2020. Core (less food and energy) prices rose a less-than-expected 0.1%, their slowest pace in over three years. On a year-over-year basis, the CPI moved up 3.0%, its lowest reading since March 2021. Producer prices rose 0.2% in June, slightly higher than expected, while May’s previously reported decrease was revised upward to flat. Core (less food, energy, and trade services) producer prices came in flat for the month. On a year-over-year basis, the Producer Price Index (PPI) moved up 2.6% in June https://lnkd.in/dn_22Uh

Weekly Market Update: U.S. equities extended their run of record closes led by the S&P 500 Index and Nasdaq Composite. The S&P 500 Index gained 1.98% on a total return basis during the abbreviated holiday week. The Labor Department’s report on Friday showed the U.S. added 206,000 jobs last month while the unemployment rate ticked up to 4.1%. The June report marked the first time since 2021 that the unemployment rate crossed the 4% threshold. In bond markets, the yield on the 10-year Treasury declined to 4.28%. Yields finished lower for the week following two weeks of gains. https://lnkd.in/dn_22Uh

Monthly Market Update: Market leadership remains narrow, with growth continuing to drive performance in June. The Information Technology sector was the best performer, up 9.3%, while Utilities the weakest, down 5.5%. NVIDIA has surpassed $1T, $2T, and $3T market caps within the past 12 months, making it larger than the entire stock market of several European nations. https://lnkd.in/dU2qcrqJ