Investment Week at a Glance
Stocks finished down last week. The Dow Jones Industrial Average was down 0.7%, the S&P 500 fell 1.5%, and the NASDAQ fell 2.3%. Foreign stocks (MSCI EAFE) were also down for the week, falling 0.5%. Bond prices were down for the week, with the 10-year U.S. Treasury yield ending the week at 4.74%. (Data source: Wall Street Journal)
Weekly Jobless Claims Fall, Displaying Workforce Resilience
On August 20th, the Labor Department reported that jobless claims fell to 206,000 last week. Over the past year, weekly jobless claims have been in a historically low range of around 200,000-230,000. This data indicates that despite slowdowns in hiring due to labor costs and technological disruption, layoffs appear to remain relatively low among those who are actively employed.
Warsh to Speak at Jackson Hole, Potentially Providing Investors With Insights On the Fed’s September Meeting
On Friday, August 28th, Chairman of the Federal Reserve, Kevin Warsh, will deliver remarks at the Jackson Hole Economic Policy Symposium. Warsh’s speech could cause markets to be volatile on Friday and provide investors with the opportunity to have a preview of the Fed’s approach to inflation and interest rates before September’s FOMC meeting.
John Deere Stock Up 39% This Year, As the Company Continues to Improve Operational Efficiency.
John Deere (DE), a leader within the industrial sector, has performed well this year following several strong earnings releases. In the company’s latest earnings report, released on August 20th, the company posted earnings per share of $5.10, beating analysts’ estimates of $4.71 per share (DE Investor Relations). This marks the third quarter in a row the company has beaten earnings expectations by a considerable margin. Additionally, investors have responded positively both to the increased profitability and the raised net-income outlook provided by the company, which stems from improved operational efficiency (CNBC).
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Quiz
What is the current 30-year Treasury Yield? (Scroll Down for Answer)
- 4.50%
- 4.75%
- 5.00%
- 5.25%
Answer:
4. 5.25%. The 30 Year US Treasury Yield is currently sitting at 5.25%, its highest level in two decades. Treasury investors are demanding higher interest rates because the US national debt continues to grow, inflationary fears, long-term interest rate worries, and competition from an abundance of other investment opportunities.
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