Investment Week at a Glance
Stocks finished mixed last week. The Dow Jones Industrial Average was down 0.6%, the S&P 500 was up 0.4%, and the NASDAQ rose 0.2%. Foreign stocks (MSCI EAFE) were also up for the week, rising 0.5%. Bond prices were down for the week, with the 10-year U.S. Treasury yield ending the week at 4.70%. (Data source: Wall Street Journal)
July CPI Data Reduces the Odds of a Rate Hike by the Fed in September
On August 12th, the Bureau of Labor Statistics released the Consumer Price Index (CPI) data for July. The data revealed that prices only increased by 0.1% in the month, bringing the annual inflation rate to 3.4%. Wall Street responded positively to the data as it was in line with expectations, and it decreased the odds of a September Fed Rate hike in betting markets.
US Retail Sales Fall Unexpectedly in July, Raising Concerns About Consumer Strength
The US Census Bureau released data on Friday, August 14th, showing a 0.6% decline in retail sales. This is the biggest decrease since May of 2025. Automobile sales fell by 1.8% in July, and online sales fell by 2.2%. The weak retail sales report, along with last week’s weak labor report, could indicate that the economy is beginning to slow. While economists generally expect solid economic growth in the 3rd quarter of 2026, many are lowering their forecasts due to weaker consumer confidence.
Citigroup Stock Up 17% Year to Date, And Almost 50% In the Last Year
Citigroup (C), one of the largest companies in the financial sector, has seen its stock increase significantly over the last year, as it has risen 48% since lastJ August. Over the last couple of years, the company has significantly grown its earnings and profitability, making it more attractive to investors. In the company’s latest earnings report released on July 14th, Citi reported earnings per share of $3.14, smashing analysts’ estimates of $2.71 (Citigroup Investor Relations). The company’s next earnings date is set for the middle of October, and both investors and analysts appear to be expecting another big quarter from the financial services giant (CNBC).
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Quiz
How many consecutive weeks have the S&P 500 and NASDAQ finished higher? (Scroll Down for Answer)
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Answer:
2. 3. The S&P 500 and NASDAQ have finished at higher prices three weeks in a row, now reflecting a market recovery since the end of July. Most of the gains have been fueled by the technology sector, specifically by companies such as Microsoft.
