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Week of June 28, 2021 Thumbnail

Week of June 28, 2021

Greetings

We hope this note finds you well as we approach the July 4th Holiday.

  • U.S. Stocks staged a strong rally last week as Fed Chair Powell calmed markets by affirming that interest rates will not be rising any time soon. 
  • Next Up-Earning Season--Federal Express reported earnings last week and while the numbers were generally strong and actually slightly beat expectations, the stock sold off post announcement. This could be a sign that the market still expects big beats on earnings and revenue which could set the stage for some July volatility as the markets digest the realty of good earnings but perhaps not the big beats we saw last quarter.
  • This week:  European markets are down this morning as new quarantines are being put in place due to the spreading of the Delta variant, threatening summer tourism as these economies begin to reopen.  This Friday we will get another important jobs report, with the forecast calling for continued payroll growth in June.  Based on an average expectation of 600,000 new jobs, the math would imply 10-12 months of continued zero interest rates on the short end of the yield curve.  The long end will likely be controlled more by inflation expectations and any talk of tapering.
  • Our summary of the markets is linked below. As you will see, last week bounced back enough to erase pretty much all of the prior week losses.

As always, do not hesitate to contact us to schedule a meeting either in our office or virtually to review your portfolio and financial plan.

John Klobusicky, CFA,CAIA, Managing Partner

FMA Advisory Inc.

717-232-8850

jklobusicky@fma-advisory.com

Market Insights - June 25, 2021

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