{"id":7929,"date":"2022-07-05T09:24:14","date_gmt":"2022-07-05T13:24:14","guid":{"rendered":"https:\/\/scarletoakfs.com\/?p=7929"},"modified":"2023-07-26T12:49:04","modified_gmt":"2023-07-26T16:49:04","slug":"rebound-fizzles","status":"publish","type":"post","link":"https:\/\/scarletoakfs.com\/rebound-fizzles\/","title":{"rendered":"Rebound Fizzles"},"content":{"rendered":"

In this week\u2019s recap: Pre-holiday markets see no rebound.<\/em><\/p>\n

Weekly Economic Update<\/strong><\/h1>\n

THE WEEK ON WALL STREET<\/strong><\/p>\n

Stocks turned lower as a quiet news week offered investors little fresh visibility into the market overhangs of economic slowdown and inflation.<\/p>\n

The Dow Jones Industrial Average dipped 1.28%, while the Standard & Poor\u2019s 500 fell 2.21%. The Nasdaq Composite index dropped 4.13%. The MSCI EAFE index, which tracks developed overseas stock markets, lost 1.49%.1,2,3<\/sup><\/p>\n

REBOUND FIZZLES<\/strong><\/p>\n

Stocks struggled last week amid poor market liquidity typical of the summer months and a news vacuum ahead of the second-quarter earnings reports. Investors also appeared to be anticipating guidance at the July Federal Open Market Committee meeting. What little news there was proved generally disappointing. A steep decline in consumer confidence preceded Fed Chair Powell’s acknowledgment that inflation may persist.<\/p>\n

Stocks stumbled after a profit warning from a high-end retailer, which highlighted recession risks. The sentiment suffered from a 4.7% increase in the core personal consumption expenditures index, which is the Fed\u2019s preferred measure of inflation. It remained near levels not seen since the 1980s. 4<\/sup><\/p>\n


\nCONSUMER CONFIDENCE WANES <\/strong><\/p>\n

The Conference Board\u2019s Consumer Confidence Index declined to its lowest level since February 2021, falling from 103.2 in May to 98.7 in June (1985=100). While consumers\u2019 assessment of current conditions slipped only marginally, their short-term outlook for income, business, and labor market conditions eroded substantially, touching its lowest level since March 2013.5<\/sup><\/p>\n

This rising pessimism about the short-term outlook was especially notable in consumers’ assessment of financial prospects, with 15.9% expecting their incomes to increase (down from 17.9% in May) and a growing share of individuals expecting their incomes to decrease (15.2% in June vs. 14.5% in May).6<\/sup><\/p>\n

\"\"\u00a0<\/strong><\/p>\n

THE WEEK AHEAD: KEY ECONOMIC DATA<\/strong><\/p>\n