The major U.S. stock indexes continued to hover near record highs set earlier in the spring, with the S&P 500 breaking its record on Thursday. That index posted a small gain for the third week in a row, as did the NASDAQ, which outperformed its peers; the Dow retreated modestly. I have broken down this week’s news using songs from Dr. Dre’s 1992 album The Chronic.
Nuthin’ But a G Thang
It was time for President Biden to make his impression felt at the G-7 meeting which started Friday. The leaders announced they would endorse a 15% minimum corporate and that they reached consensus on the need for a shared approach to China selling exports at unfairly low prices. Endorsing and reaching consensus does not always equate to action so it remains to be seen what the follow through will be.
Let Me Ride
Demand for used cars and trucks continues to surge. The impact of supply shortages and bottlenecks continues to be prevalent. Used-car prices continued to rise sharply in May, increasing 7.3% in May from April and accounting for about one-third of the overall 5% increase in inflation. Semiconductor shortages are still affecting new car production, but some of those supply-chain pressures are starting to ease.
The Doctor’s Office
There will be less vaccine at your Doctor’s office. The F.D.A. told Johnson & Johnson that about 60 million doses made at a troubled plant in Maryland cannot be used due to possible contamination. The news sent the stock lower.
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