Investment Week at a Glance
Stocks finished mixed for the week. The Dow Jones Industrial Average fell 0.4%, the S&P 500 was up 0.7%, and the NASDAQ rose 1.6%. Foreign stocks (MSCI EAFE) were down for the week, falling 1.9%. Bond prices were down for the week, with the 10-year U.S. Treasury ending the week at 4.32%. (Data source: Wall Street Journal)
Ceasefire Extension in Middle East
The ceasefire was extended last week, and markets gained some stability after a few weeks of volatility. Oil prices remain elevated as traffic flowing through the Strait of Hormuz is still low, and nowhere near the level it was at before the war. Despite this, markets have seemed to look past this worry as we are back at all-time highs, and this story is slowly going away for investors. We could see things flare up again and cause the market to worry, but as of now, investors have turned the page. Earrings season is just heating up as well, which is now what will likely drive the market one way or another in the coming weeks.
Economic Resilience
The economy continues to show little sign of slowing down as the consumer remains strong, and spending continues to rise despite higher oil prices. We’ll see how the consumer is able to hold up if oil prices remain elevated or move even higher throughout the rest of the year. Unemployment continues to remain low despite headlines of companies cutting jobs as AI continues to develop. We’ll see what happens with inflation in the coming months with higher energy prices, and if that impacts the Fed’s decision on rate cuts/hikes. Currently, the market is pricing in no cuts/hikes the rest of the year and rates to stay where they are at.
Intel Stock Up Over 120% Year to Date, Surging 23% On Friday
One of America’s largest semiconductor and chip manufacturers, Intel (INTC), has performed extremely well this year, returning 123%. The stock price exceeded $80 on Friday, passing the previous all-time high set nearly 26 years ago in 2000. Friday’s 23% return is the single best day for the stock since 1987 (Yahoo Finance). The surge occurred because of Intel’s unexpected positive Q1 earnings, with the company reporting revenue of $13.6 billion, exceeding estimates of $12.2 billion, and earnings per share of $0.29 versus estimates of $0.01 (Intel Investor Relations). Although the stock has performed well this year, Intel serves as a great example of why it is a great idea for investors to have a diversified portfolio, as holding Intel by itself since 2000 would have taken over a quarter of a century to return to its all-time highs, while broader indexes have performed significantly better over that time span (CNBC).
If you have any questions regarding your account with MGO, please call us at (216) 771-4242 or send an email to us at ask@mgo-inc.com
Quiz
What has an ounce of silver returned this year? (Scroll Down for Answer)
- 2%
- 6%
- 8%
- 12%
Answer:
3. 8%. Although silver hit an all-time high in January of $121.64 an ounce, and its price has come down significantly since then, the precious metal is still up over 8% this year. Beginning the year at $70 an ounce, it is now priced at a little over $76. Despite the major price decline since the end of January, silver exposure has still helped the MGO portfolios return this calendar year.
Investing involves risk, including the possible loss of principal. The information contained herein has been prepared solely for informational purposes. Nothing contained herein should be construed as a recommendation to either buy or sell any security or economic sector, or implement any strategy discussed. Please consult with your financial advisor, accountant, and/or attorney before acting on this information. MGO-Inc is a DBA of OneSeven. OneSeven is an investment advisor registered with the U.S. Securities and Exchange Commission (SEC). Registration with the SEC does not imply a certain level of skill or training. Investment Products are Not FDIC Insured, Offer No Bank Guarantee, and May Lose Value.
