Investment Week at a Glance
Stocks finished lower for the week. The Dow Jones Industrial Average fell 2.9%, the S&P 500 was down 2.4%, and the NASDAQ fell 2.2%. Foreign stocks (MSCI EAFE) were also down, falling 2.8%. Bond prices were up for the week, with the 10-year U.S. Treasury ending the week at 4.21%. (Data source: Wall Street Journal)
Fed Leaves Rates Unchanged
The Federal Reserve held a meeting last week and once again left interest rates unchanged. This comes as expected, and there was not much of an effect on markets. Fed Chair Powell continued to cite the uncertainty of tariffs and their effect on the economy and inflation. Although the decision to leave rates unchanged was made, there was no consensus among the Board of Governors. For the first time since 1993, there were two dissenting votes out of the 11. The next meeting will be in September, and currently the market is pricing in an 83% chance of a rate cut.
Weak Jobs Report
The July jobs report was released last week and was a disappointment, as a total of 73,000 jobs were added. The bigger news was the revision lower from May and June, which took off 260,000 jobs from the total. The unemployment rate also ticked higher up to 4.2%, still historically low, but something to watch for if it continues to rise. A positive from the report was that wage growth was 3.9% year-over-year, outpacing inflation, which is roughly 2.7% meaning consumers had positive real wage gains.
Apple Beats Earnings Expectations
Apple reported earnings this past week and beat on both earnings per share and revenue. The stock rose initially but moved lower with the rest of the market on Friday. Apple has been the laggard of the “Mag 7” stocks this year, down 17% for 2025. Investors are hopeful that it will turn around after a strong quarter in which revenue growth was the strongest since December 2021. (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 is the current labor-force participation rate? (Scroll Down for Answer)
- 2%
- 8%
- 5%
- 9%
Answer:
- A) 62.2%, the labor-force participation rate dropped to 62.2%, the lowest since November 2022. With unemployment at 4.2%, there are roughly 7.2 million unemployed Americans with 7.4 million open jobs.
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.
