Today’s Stock Market Review
Hey there, Mission Winners! Pat Walker here, and boy, do we have an interesting market situation to dissect. This week’s action was like a rollercoaster that ends right back where it started – thrilling, but ultimately leaving us in familiar territory.
The Big Picture
Let’s cut to the chase. The major indices closed out the week with gains, but it wasn’t a straightforward ride. The S&P 500 rose 0.47%, and the Nasdaq Composite closed 0.51% higher. But here’s the kicker – after recovering from Monday’s steep sell-off, the S&P 500 ended up virtually unchanged from last Friday. Talk about a round trip!
The market showed some indecision, with advancers leading decliners by a narrow 11-to-10 margin at the NYSE, while the Nasdaq saw the opposite. This split decision tells us that there’s still some uncertainty in the air.
The Mega-Cap Muscle
Once again, the big boys flexed their muscles and had an outsized impact on index performance. Eli Lilly (LLY) was the standout, surging 5.5% and building on its post-earnings momentum. We also saw solid contributions from the usual suspects – Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), and Meta Platforms (META).
But here’s where it gets interesting – while the mega-caps were having a party, small and mid-cap stocks were left watching from the sidelines. The Russell 2000 actually dipped 0.2%, and the S&P Mid Cap 400 edged down 0.03%. It’s a stark reminder that not all segments of the market move in lockstep.
Sector Breakdown and Bond Market Moves
Nine out of eleven S&P 500 sectors closed in positive territory, led by communication services (+1.0%) and information technology (+0.6%). Materials was the lone sector in the red, down 0.1%, while industrials ended flat.
In the bond market, we saw some interesting moves. The 10-yr note yield dropped six basis points to 3.94%, while the 2-yr note yield inched up one basis point to 4.23%. This flattening of the yield curve is something we’ll want to keep an eye on.
Looking Ahead
As we gear up for next week, we’ve got a packed economic calendar to watch. From the July Treasury Budget on Monday to Building Permits and Housing Starts on Friday, with PPI, CPI, and Retail Sales in between, there’s no shortage of potential market movers.
Remember, Mission Winners, in markets like these, it’s crucial to stay disciplined and stick to your strategy. Don’t let the day-to-day noise throw you off your game. Keep your eyes peeled for those clean and simple patterns we always talk about, and be ready to act when the right opportunities present themselves.
Stay sharp, stay focused, and I’ll see you in the markets!
