Weekly Economic Update: August 8th, 2022

Presented by Nicholas Wealth Management

August 8th, 2022

 

Weekly Market Update

In this week’s recap: Mixed week for markets; jobs on the rise.

 

The Week on Wall Street

Stocks turned in a mixed performance last week as investors struggled with headlines suggesting that the Fed was unlikely to soon ease up on its current monetary tightening policy.

The Dow Jones Industrial Average slipped 0.13%, while the Standard & Poor’s 500 rose 0.36%. The Nasdaq Composite index picked up 2.15% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, gained 0.23%.1,2,3

 

Showing Resilience

Ahead of Friday’s employment report, stocks were generally higher, highlighted by a Wednesday rally triggered by fresh earnings surprises and a better-than-expected economic report. The rally was especially notable because it occurred when multiple Fed officials said that the fight against inflation hadn’t ended, perhaps throwing cold water on the idea that the Fed might pivot due to weakening economic activity and the prospect of cooling inflation.

Aside from this single day of enthusiasm, markets were a bit jittery, especially as investors monitored Speaker of the House Pelosi’s visit to Taiwan. A robust employment report on Friday reinforced the idea that the Fed would likely stay the course on monetary tightening, resulting in a mixed market for the week.

 

Employment Report

The U.S economy added 528,000 jobs in July, doubling the consensus expectation of 258,000. The unemployment rate ticked lower, falling from 3.6% to 3.5%. Coincident with this job creation was strong wage growth, as average hourly earnings rose 0.5% in July and 5.2% from a year ago.4

Leisure and hospitality, professional and business services, and healthcare lead the way in reported job gains, as seen in most sectors of the economy. Even sectors such as construction, particularly vulnerable to rising interest rates, saw job gains. The labor force participation rate moved slightly lower, slipping to 62.1%–its lowest level this year. 5

 

Tip of the Week

If you are serious about buying a home, getting pre-approved by a lender can give you a better chance of making a serious offer.

 

Radio

Retire Ready with David Nicholas airs every Saturday at 6:00 PM on 95.5 WSB. Be sure to tune in this weekend! If you missed this past weekend’s show, CLICK HERE to listen!

 

Media

Be sure to subscribe to our YouTube page for all of David’s media commentaries CLICK HERE!

Communist China would love the Inflation Reduction Act. 60% of Americans own stocks and 60 million Americans have money in a 401K. Politicians are lying to you when they say the stock buyback tax won’t affect middle-class Americans.

 

 

CITATIONS:

  1. The Wall Street Journal, August 5, 2022
  2. The Wall Street Journal, August 5, 2022
  3. The Wall Street Journal, August 5, 2022.
  4. CNBC, August 5, 2022
  5. CNBC, August 5, 2022

Please consult your financial professional for additional information.

This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security.

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Madison Luck

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