The S&P 500 closed the week at another record, posting its best weekly performance since February, as investors believe that higher inflation will be temporary as the economy continues to move out of the pandemic. Federal Reserve Chairman Jay Powell, eased concerns about rate tightening anytime soon, but the shallow breadth of this week's stock market rally has some observers worrying that the run higher is looking a bit tired. The S&P 500 was up 2.7% for the week, the Dow added 3.4% for its best week since mid-March, and the Nasdaq moved 2.4%. The bond market spent most of the week barely moving, but the long end of the Treasury curve saw some selling Friday as core inflation came in at the highest rate in almost 30 years.
Market participants expect a quiet week ahead of the latest jobs info on Friday. The report, expected to show the economy adding 683,000 jobs in June, is the next piece of data that could shed light on wage inflation and the worker shortage as pandemic-era unemployment benefits taper off in some states. Trading volumes could also be lower in the coming sessions, with many traders taking an early vacation ahead of the July 4 holiday weekend.
Comcast-owned Universal’s “F9” set a Covid-era record weekend for the US box office with $70 million in ticket sales. The previous record was set in May and was just under $50 million. This increase in ticket sales is a positive indicator that economic activity is “returning to normal.”
Krispy Kreme, with the sweet stock ticker – DNUT, is making its second run as a publicly-traded company. Krispy Kreme will raise about $600M at the midpoint of its expected pricing range and have a valuation of around $3.8B. Krispy Kreme's story has changed over the years and expanded beyond the company's original product lines to include a broader reaching product assortment and international exposure. But, time will tell.
Most stock and bond markets will be closed on Monday, July 5th for the July 4th holiday. We wish everyone an enjoyable and safe Independence Day weekend.
