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Week of August 9, 2021 Thumbnail

Week of August 9, 2021

Greetings,

We hope this update finds you well and enjoying your summer.

  • Jobs Growth Continues: Friday's jobs report showed a very strong addition of 943,000 jobs to non-farm payrolls. The positive is that the economy continues to heal, but it also means that the Federal Reserve may hit their target of 8 million new jobs sooner than expected, prompting them to nudge interest rates higher.
  • Earnings Surprises Continue: With over 90% of companies reporting earnings for the second quarter, last week continued the trend of better than expected results across most economic sectors, but not all. Expedia reported earnings last week and when giving guidance for the rest of the year management was concerned about the impact of the Delta variant on the travel industry.
  • This Week: U.S. equity futures are slightly weaker this morning on concerns of a pullback in stimulus and effects of the resurgence in the fast-spreading delta virus variant both in the U.S. and China.  All eyes will be on the infrastructure package this week.  Infrastructure spending is likely already baked into market prices, and the flow of dollars from this package into the economy and earnings will take longer than the immediate injection into bank accounts seen in the last two rounds of stimulus, so any stumbles on getting this passed will likely rattle the markets.

Our full update is linked below. As always please do not hesitate to contact us to schedule a meeting in our office or a virtual meeting to review your portfolio and financial plan.

 

John J Klobusicky, CFA, CAIA, Managing Partner

FMA Advisory Inc.

Cell: 717-856-2238

Market Insights - August 6, 2021

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