Investment Week at a Glance
Stocks finished mixed for the week. The Dow Jones Industrial Average fell 0.1%, the S&P 500 was up 0.6%, and the NASDAQ rose 1.5%. Foreign stocks (MSCI EAFE) were down, falling 0.7%. Bond prices were down for the week, with the 10-year U.S. Treasury ending the week at 4.43%. (Data source: Wall Street Journal)
Inflation Data in Line with Expectations
Last week, the June inflation data was released, CPI (consumer price index) came in at 2.7% year-over-year, and the PPI (producer price index) came in at 2.3%. Some were expecting a higher number for PPI due to tariffs. Investors will continue to watch the inflation rate closely as the Fed will likely want to see inflation stay here or even fall before cutting rates. One reason inflation has not spiked is that the price of oil remains below $70 per barrel. Oil prices tend to creep into many other goods and services as the cost to make and transport goods is dependent on energy prices.
Early Earnings Reports Continue to be Strong
Roughly 12% of the S&P 500 have reported earnings, and 85% of them have beaten their expectations. Despite all the headlines and news stories, earnings are what drive markets in the long run. For 2025, earnings are projected to grow by 9% and in 2026, earnings growth is expected to be nearly 14%. This upcoming week will have over 100 companies in the S&P 500 report earnings, including Tesla and Alphabet (Google).
Invesco Stock Rises More Than 15% On Friday
Invesco announced that it filed to make its popular QQQ fund an “open-end fund” ETF structure. It is currently registered as a unit investment trust (UIT) as it has been since it was created in 1999. Invesco receives very little revenue from the fund despite over $330 billion of assets. This change could generate an additional $700 million for Invesco. (Investopedia)
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Quiz
How much tariff revenue did the U.S. Treasury collect in June? (Scroll Down for Answer)
- $9 billion
- $14 billion
- $20 billion
- $27 billion
Answer:
4. $27 billion. June set the record for most tariff revenue in a month in the history of the United States. This also put the total revenue collected from tariffs over $100 billion for the year, the first time this has happened as well. Time will tell if the economy is able to absorb these tariffs or if inflation spikes.
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