Investment Week at a Glance
Stocks finished higher for the week. The Dow Jones Industrial Average rose 1.7%, the S&P 500 was up 0.9%, and the NASDAQ rose 0.8%. Foreign stocks (MSCI EAFE) were also up, rising 1.4%. 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)
CPI Data Comes in as Expected
The Consumer Price Index (CPI) came in at 2.7% year-over-year for July, as the report showed little sign of an increase in inflation. Core-CPI, which excludes food and energy, came in at 3.1%. The Producer Price Index (PPI) did show signs of inflation as it rose 0.9% month over month. Investors will keep a close eye on the following month’s data, as we will get all the August figures prior to the next Fed meeting. Currently, the market is pricing in an 83% chance of a rate cut in September.
Annual Jackson Hole Symposium
This upcoming weekend is the Jackson Hole Symposium, as all eyes will be on what Fed Chair Powell has to say, as markets are expecting a rate cut next month. Powell will have his speech around 10 AM on Friday morning and could pave the way for a September rate cut or surprise the market and indicate rates will be left unchanged. The annual meeting always gets a lot of attention, but this year has more anticipation as it is very likely to be Powell’s last as Fed Chair. Markets will likely react to his speech on Friday, which may cause some volatility throughout the week in anticipation.
Paramount Skydance Rises 30% on UFC Deal
Paramount Skydance stock was up over 30% last week on the news of a 7-year $7.7 billion deal that will put UFC fights on Paramount+. The deal is new to the combat sports world as it ends the pay-per-view concept for the UFC. Instead of having to pay for each fight night, now fans will just have Paramount+. UFC President Dana White even floated the idea of having big fights on CBS just like college football and NFL games. Fans are excited for the change, and investors as well as the stock added $2.5 billion to its market cap last week. (CNBC)
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Quiz
How much is the Dow Jones up for the year? (Scroll Down for Answer)
- 5.6%
- 7.9%
- 9.4%
- 11.5%
Answer:
1. 5.6%. The Dow Jones is up 5.6% for the year as it trails the other major indices but still has returned a modest gain. One reason for the trailing performance is UnitedHealth Group being down nearly 40% for the year.
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