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- August 16th Market Overview
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Happy Friday everyone, I’m so ready for a two day weekend break from the markets!
Lets dig in…
Executive Summary
S&P 500 poised for best week since November 2023, up nearly 4%
Strong retail sales and jobless claims data ease recession concerns
Tech sector leads market rebound, with Nvidia up 18% for the week (good lord)
Market Overview
We’re seeing decent performance across major indices today. The S&P is up 0.27%, the Nasdaq has added 0.3%, and the Dow has gained 151 points or 0.38%. This puts the S&P 500 on track for its best week since November 2023, with a nearly 4% gain. The Nasdaq is outperforming with a 5% weekly gain, while the Dow has advanced about 3%.
Key Market Drivers
Economic Resilience: Yesterday’s retail sales data exceeded expectations, while weekly jobless claims declined. These indicators have helped alleviate recession fears that sparked a global sell-off earlier this month.
Inflation Outlook: Recent inflation readings have strengthened the case for a soft landing scenario, balancing growth and price stability concerns.
Tech Sector Rebound: Technology stocks are spearheading the market comeback, with notable gains from industry leaders.
Stock Spotlight
Nvidia (NVDA): Up an impressive 18% this week, heading for its best performance since May 2023. The stock has rallied 149% year-to-date, showcasing the AI boom’s impact.
H&R Block (HRB): Shares jumped more than 13% following announcements of a 17% dividend increase and a $1.5 billion share buyback program.
Rocket Lab (RKLB): Soared over 16%, reaching a 52-week high after shipping two Mars-bound spacecraft to Cape Canaveral.
Other Magnificent 7 Updates
Apple (AAPL): Up approximately 4% for the week
Microsoft (MSFT): Advanced roughly 3% this week
Other Notable Company News
Bavarian Nordic: Surged more than 16% after submitting data to extend mpox vaccine use for teens in the EU.
Applied Materials: Shares dipped 1.8% despite posting better-than-expected Q3 earnings, suggesting high investor expectations.
JD: Added 3% after reporting a Q2 revenue beat, driven by effective pricing strategies in a competitive market.
Sector Watch
Sector | Symbol | % Change |
|---|---|---|
Consumer Discretionary | XLY | +0.21% |
Consumer Staples | XLP | +0.18% |
Energy | XLE | -0.20% |
Financials | XLF | +0.55% |
Health Care | XLV | +0.12% |
Industrials | XLI | -0.08% |
Materials | XLB | -0.05% |
Real Estate | XLRE | -0.25% |
Technology | XLK | +0.17% |
Communication Services | XLC | +0.39% |
Utilities | XLU | +0.60% |
Other Markets
Gold futures hit a new intraday all-time high of $2,537.50, before settling at $2,526.60, up 1.4%. The VanEck Gold Miners ETF also benefited, gaining 2% on Friday and nearly 6% for the week.
Policy Watch
The University of Michigan’s consumer sentiment survey for August came in better than expected, rising to 67.8 from 66.4 in July. Inflation expectations remained steady at 2.9% for one year and 3.0% for five years, providing some stability to market outlooks.
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- JB
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Note: This newsletter is intended for informational purposes only.