The Pulse on the Economy and Capital Markets: August 1 – 5, 2022

At a glance:

• Global markets increased last week as investors embraced riskier stocks and bonds aimed to recoup losses that occurred during the first half of the year. Nasdaq, Russell 2000 and emerging markets led the risk-centric performance, while the energy sector dropped 8% last week.
• Earnings are growing faster than expected with 75% of the S&P 500 reporting positive earnings surprises despite higher costs due to inflation.
• The unemployment rate in last week’s unemployment report reached a 50-year low after dropping 3.5% shocking both economists and investors. Despite the US economy adding 528,000 new jobs, the four-week average of initial unemployment claims has increased as the layoff trend shows no signs of slowing down.
• The M&A markets can often provide insight into key trends of the economy and despite a potential recession, the M&A market remains active.
• Two private equity firms — Apollo Global and ThomaBravo — announced buyouts of publicly traded companies Atlas Air and Ping. In addition, acquisitions are making headlines with Amazon, TD Bank and GlobalPayments scooping up smaller companies, as signs point to substantial balance sheets and cash to make such acquisitions possible.
• As it relates to industry news, we’re reading about a World Series of Poker player charged with spoofing the gold market, CEOs blame remote workers for slow sales, behind the Inflation Reduction Act and semi-automated warehouses may become cheaper.

Related resources:

• World Series of Poker player charged with spoofing gold market
• CEOs blame remote workers for slow sales
• Senate passes sweeping climate, health and tax package
• Why semi-automated warehouses are getting cheaper

Disclosures

Investment advisory services are offered by Aprio Wealth Management, LLC, a Securities and Exchange Commission Registered Investment Advisor.  Opinions expressed are as of the current date (August 9th, 2022) and subject to change without notice. Aprio Wealth Management, LLC shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, the information, data, analyses or opinions contained herein or their use, which do not constitute investment advice, are provided as of the date written, are provided solely for informational purposes and therefore are not an offer to buy or sell a security. This commentary is for informational purposes only and has not been tailored to suit any individual. References to specific securities or investment options should not be considered an offer to purchase or sell that specific investment.

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