Hope you are all doing well. Happy 4th of July weekend! The major U.S. stock indexes all three major indexes finished around 2% higher for the week on Thursday, before Friday’s pre-holiday market closure. The Dow climbed to a record high, while the S&P 500 and the NASDAQ remained below the peak levels they recorded on June 2. As the second quarter concluded on Tuesday, the NASDAQ ended up more than 21% higher for the three months. The S&P 500 and Dow also had solid results for the quarter, climbing nearly 15% and 13%, respectively. That is the best quarter for both in about 4 years. In honor of our nation’s 250th and the opening of his presidential library, I have broken down this week’s update using quotes from Theodore Roosevelt.
If we cannot attain all at one leap, we must advance towards it step by step, reasonably content so long as we do actually make some progress in the right direction. — Theodore Roosevelt
The labor market is making progress even if it is not as fast as markets had hoped. U.S. jobs growth fell short of economists’ expectations in June, marking a shift after gains exceeded consensus forecasts in the preceding three months. The economy generated 57,000 new jobs last month. That is roughly half the total that had been expected. The initial estimates of gains in April and May were adjusted downward by a combined 74,000.
Criticism is necessary and useful; it is often indispensable; but it can never take the place of action. — Theodore Roosevelt
Many were critical of the actions in the Middle East. One area where pundit hand-wringing has been wrong is over the long-term impact on oil prices. The price of oil fell at the start of July, extending the previous month’s 20% decline. U.S. crude was trading around $68 per barrel on Thursday afternoon. That is well below the $87+ level at the end of May. Thursday’s price is basically the same as it was in late February, before the Middle East conflict escalated.
Far better it is to dare mighty things… than to take rank with those poor spirits who neither enjoy much nor suffer much. — Theodore Roosevelt
Investors in gold and crypto have enjoyed much. However, lately the tables have turned, and those same investors are suffering significant drops. The price of Bitcoin climbed on the first two trading days of July, but the modest gains didn’t come close to offsetting Bitcoin’s sharp decline in June. The price dropped by more than 20%, ending the month on Tuesday below $59,000 after closing out May at nearly $74,000. A modest weekly gain for gold did little to soften the precious metal’s sharp price decline from a record high set more than five months ago. Gold was trading around $4,140 on Thursday, well below its peak of more than $5,500 reached in late January. As recently as mid-April, the price was around $4,800.
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