Hope you are all doing well. Major U.S. stock indexes stumbled to start the week, rallied after Friday’s jobs report, but ended the day with losses. While the Dow posted a weekly decline of around 1%, the S&P 500 and the NASDAQ posted a weekly loss of over 2%. Paul Reubens aka Pee Wee Herman passed away this week. I have broken down this week’s update using some of his memorable lines.
It’s like you’re trying to unravel a giant cable-knit sweater and someone keeps knitting and knitting
The market keeps waiting for the labor market to unravel but people keep working and working. The U.S. labor market added 187,000 new jobs in July. The number was shy of the 200,000 estimate but in line with June’s revised gain of 185,000. The unemployment rate fell to 3.5%, remaining near its 50-year low. The strong labor market gives the Fed runway to keep raising rates which is why the market is hoping for it to cool.
You don’t wanna get mixed up with a guy like me. I’m a loner, a rebel.
Ratings agency Fitch went out a limb and unexpectedly downgraded the U.S. credit rating on Tuesday from AAA to AA+. The agency cited the recent debt ceiling standoff and concern over rising federal debt as factors leading to an “erosion of governance.” This should be viewed as one off. It doesn’t seem like the other rating agencies will follow suit. Jamie Dimon and several other financial leaders were perplexed by the timing and rationale for the decision.
I will be out of the office this coming week and have limited access to the internet. I will be periodically checking and responding to email. If there is something pressing that needs to be done immediately this week please email Rebecca at email@example.com
If you’d like to speak about your investments or your plan, my calendar link is below and you can schedule a phone or zoom appointment at any time.