Investment Week at a Glance

Stocks finished up for the week. The Dow Jones Industrial Average was up 0.9%, the S&P 500 was up 0.9%, and the NASDAQ rose 2.4%. Foreign stocks (MSCI EAFE) were down for the week, falling 0.5%. Bond prices were up for the week, with the 10-year U.S. Treasury ending the week at 4.45%. (Data source: Wall Street Journal)

Kevin Warsh’s First Meeting as Chair of the Fed

The Fed left rates unchanged and removed the projected rate cut by the end of the year. This was expected, and markets did not have a huge reaction to the news. There continues to be momentum picking up for a rate hike by year’s end as the market is now pricing in 90% chance of a hike. This would be done to help combat inflation, which is currently rising. We will watch the next few months to see if lower energy prices bring cooler inflation data. As always, the Fed can swing markets one way or the other, and it will be an interesting 2nd half of the year to see how the new Chair handles it.

Employment Remains Strong

Employment data continues to come in strong, opening the door for the Fed to tighten the economy as employment is not its main goal currently. The current unemployment rate is 4.3%, and there are still 300k more job openings than people actively looking for a job. Wage growth continues to be strong but contained at 3.4%, not causing a real inflation worry for the economy. This will continue to play out throughout the year as the Fed once again balances inflation and growth without causing a recession.

Texas Instruments Stock Up Over 86% This Year, Despite A Poor Performance in 2025

Texas Instruments (TXN) is commonly associated with the calculators it produces for various educational purposes; however, this accounts for only a small segment of its business. Most of the revenue Texas Instruments generates comes from its embedded processing chips (semiconductors) used in a wide variety of products from personal electronics to industrial equipment. The company missed analysts’ earnings targets in the final two quarters of 2025, and the stock suffered as a result, down 7% at the end of last year. Despite last year’s decline, Texas Instruments quickly rebounded in 2026, and its stock has surged 86.1% amid the semiconductor boom across the sector. Additionally, Texas Instruments reported $1.68 earnings per share, which beat the consensus estimates of $1.37 by 22% (TXN Investor Relations). Texas Instruments is expected to report earnings again in July, and it appears that investors have priced in another big quarter (CNBC).

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Quiz

What is the price of crude oil per barrel? (Scroll Down for Answer)

1.    $76
2.    $82
3.    $86
4.    $90

Answer:

1.    $76. On Thursday, oil prices closed slightly above $76 per barrel. While still up over 30% for the year, markets have begun pricing in an end to the fighting in the Middle East as crude prices continue to decline. This should be good for consumers at the gas pump and help mitigate some inflationary fears. The MGO portfolios have been overweight due to attractive valuations, boosting performance this year. The MGO Investment Committee will continue to monitor macroeconomic trends and conduct portfolio rebalances when necessary to get investors appropriate exposure to the various sectors of the market.

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