The Market Week in Review


The overall stock market finished significantly higher on the week as trade fears eased and earnings season kicked off.  Interest rates were unchanged from the week prior with the 10-year treasury yield holding its position at 2.83%.  However, the spread between the 2-year treasury yield and the 10-year treasury yield continues to flatten, dropping 4 basis points to a very concerning spread of 0.25%.  A rise in inflationary data pushed gold prices lower with the price per ounce dropping 1.14% to $1,241.50.  Crude oil prices dropped 4.55% on the week to $70.57 a barrel amid expectations of rising output in Libya.  The U.S. dollar index rose to 94.69 from last week’s reading of 94.00.


Index Started Week Ended Week Change Change % YTD %
DJIA 24,456.48 25,019.41 562.93 2.30% 1.21%
Nasdaq 7,688.39 7,825.98 137.59 1.79% 13.36%
S&P 500 2,759.82 2,801.31 41.49 1.50% 4.78%
Russell 2000 1,694.05 1,687.08 -6.97 -0.41% 9.87%




  • U.S. job openings fell to 6.64 million in May after reaching a record high 6.84 million in June. U.S. hiring climbed from 5.58 million to 5.75 million, while the number of layoffs declined from 1.73 million to 1.59 million.


  • Producer prices rose by 0.3% in June amid increases in the cost of services and motor vehicles. The rise in producer prices resulted in a year-over-year change of 2.8%, its largest gain in six and a half years.  Producer prices, excluding the more volatile food and energy components, also resulted in a 0.3% increase in June, however it is at a 2.7% year-over-year change.


  • Consumer prices rose by 0.1% in June and resulted in its largest year-over-year change in 6 years of 2.9%. Excluding the more volatile food and energy components, consumer prices rose 0.2% for the month of June and 2.3% year-over-year.


  • After trending higher the past couple weeks, initial unemployment claims dropped by a significant 18,000 to 214,000 total claims. The less volatile 4-week average of initial unemployment claims also dropped by a moderate 1,500 to 223,000.  Continuing unemployment claims also edged lower, dropping by 3,000 to 1.74 million.



“I view diversification not only as a survival strategy but as an aggressive strategy, because the next windfall might come from a surprising place.  I want to make sure I’m exposed to it.”

– Peter Bernstein



Important Disclosures:  Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly from The Market Commentator℠, will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio.  Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions.  Moreover, you should not assume that any discussion or information contained in The Market Commentator℠ serves as the receipt of, or as a substitute for, personalized investment advice from The Milwaukee Company™.  Thank you.