Market Update
Stocks closed higher in July, with each of the benchmark indexes listed here posting notable gains. Both the stock market in particular, and the economy in general, have proven to be resilient in 2023, despite rising interest rates.
The Federal Reserve, in its endeavor to bring inflation down to the government's 2.0% target, hiked interest rates another 25.0 basis points in July, to the highest level in 22 years (see below). However, there are clear signs that inflation is finally receding. The Consumer Price Index and the personal consumption expenditures price index saw their respective 12-month rates fall to the lowest levels in nearly two years. Import and export prices dipped lower in July, as did producer prices.
While the economy remained relatively strong, the stock market proved equally robust. The S&P 500 and the Nasdaq enjoyed five straight months of gains, closing out their best seven-month stretch to start the year since 1997. Year to date, the Nasdaq is up more than 37.0%, while the S&P 500 exceeded 19.0%. In July, the Dow saw a run of 13 consecutive sessions with gains.
On A Personal Note
Jeff and Peggy spent a weekend at Norris Lake for the first time this year. Chris and his family also spent a weekend at Lake Norris in July. This was their annual trip with three other families. They have been going to the lake together for over 30 years now. Drew and his family visited England. Although most of their time was spent in London (which was great) their favorite stop was Bath. Sam took a trip to Punta Gorda to visit Savanna’s family. They spent most of their time trying to beat the July heat by relaxing at the pool. Lisa and David spent a few days at Dale Hollow Lake with friends. They did a lot of boating and Lisa even did some skiing which she hadn’t done for a few years. She was a little sore the next day but was proud she didn’t break any bones. Taylor celebrated her 27th birthday and spent lots of time with family and friends. She has been working on house projects with her husband and realized that home ownership means there is always something to fix! Taylor and Peter have been trying to stay active by riding their bikes on the 5-mile loop around Lunken Airport.
International Markets
Inflation continued to be the dominant topic last month. In the United Kingdom, although consumer prices inched up 0.1% in June, the 12-month rate remained elevated at 7.9%, still about 6.0 percentage points higher than the Bank of England's target. In France, consumer prices rose 0.2% for the month, while falling from an annual rate of 5.1% to 4.5%. The 12-month rate of inflation in the Eurozone dipped from 6.1% to 5.5%, while Germany saw consumer prices remain at 6.4% for the 12 months ended in June. China, on the other hand, has seen consumer prices fall, which has depleted corporate profits and could lead to a reduction in the workforce. The prospects of Chinese deflation could benefit global trade partners, such as the United States, by easing product prices. However, China's slowing economy could also reduce that country's demand for materials and consumer goods, which would negatively impact world trade. For July, the STOXX Europe 600 Index increased 2.3%; the United Kingdom's FTSE rose 2.3%; Japan's Nikkei 225 Index fell 1.7%; and China's Shanghai Composite Index ticked up 1.5%.
Join Us for Our Cancer Free Kids Charity Event
On Friday December 1st, MDM will be hosting a “Not So Silent Night” charity event at the Redmoor in Mount Lookout Square from 7-11PM. We are not charging admission for this exciting evening, so please invite your friends and family. The agenda will include a visit from Santa Claus, crafts for kids, a live band, dinner, drinks, and a fabulous silent auction. If you have any specific requests for silent auction items or have items you would like to donate (for example: event tickets, memorabilia, rare bottles of bourbon and wine, or vacation rentals) to benefit this worthy cause, we would love to discuss it with you, and there may even be a tax benefit for you.
If you would like to attend, please email Lisa at lwillhoite@janney.com or give us a call at 513-914-2320.
All market update and international markets information is sourced from Forefield’s quarterly market review. This is being provided solely for informational and illustrative purposes, is not an offer to sell or a solicitation of an offer to buy the securities highlighted. The factual information given herein is taken from sources that we believe to be reliable, but is not guaranteed as to accuracy or completeness. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation or needs of individual investors. Past performance is not an indication of future results. Employees of Janney Montgomery Scott LLC or its affiliates may, at times, release written or oral
commentary, technical analysis or trading strategies that differ from the opinions expressed here. The S&P 500 is an unmanaged, capitalization-weighted index. Performance figures assume reinvestment of capital gains, dividends, but do not include any fees or expenses. The Dow Jones Industrial Average is commonly used as a proxy for the U.S. stock market. The DJIA is an unmanaged average of common stocks composed of stocks of major industrial companies and assumes reinvestment of dividends and capital gains distributions. It is not possible to invest directly in an index. Market Update, International Markets, FOMC and Interest Rates, and Eye on the Month Ahead content provided by Broadridge Investor Communication Solutions, Inc from the Monthly Market Review section.
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