Summertime is here, and people are on vacations before schools reopen across the country within the next three weeks. Employers are calling employees back to office buildings. The Jobs numbers show continued decline of unemployment. The number of cases diagnosed with the Delta variant of Covid-19 is reported as surging amid debate and confusion over the wearing of masks. Masks and vaccinations are being mandated again in some locales. There is a contingent of people who refuse to get the vaccine. Congress is debating the infrastructure bill. The Fed is holding interest rates steady amid continued bond-buying.
Interest rates jumped last week (finally) after declining since mid-March this year. At some point the number of new Delta-variant cases will begin to drop and a case can be made for a re re-opening of the economy.
Our market internal indicators continue strengthening after bottoming on July 19.
The S&P 500, NASDAQ Composite, and European indices remain strategically Bullish; mid and small caps came alive; China decline may have bottomed.
Equity Styles: Large Cap Growth beginning to weaken vs. Large Cap Value: Small, Mid Cap and equal weight indices beginning to gain on S&P 500.
Ranked Sectors: Leaders - Finance, Real Estate, Health Care, Tech Laggards - Consumer Staples, Consumer Discretionary, Energy, Transportation
30-year US Treasury Bond, 10-year Note Yield downtrends reversed last Friday and continue up. This is good for banks.
Australian Dollar, the Euro, and the British Pound weakened during the week. Gold fell precipitously, nearing April low.
US Dollar weakness halted, and rose, nearing recent high.