The Pulse on the Economy and Capital Markets: July 18 – 22, 2022
July 26, 2022
At a glance:
- The markets rallied across the board as stocks, bonds, commodities and crypto ended the week up as investors start to look past inflation.
- Consumer discretionary stocks, technology and industrials typically underperform in a higher interest rate environment but are heading into the third quarter on a high note. On the other hand, energy, which has historically benefitted from high inflation, got off to a poor start.
- The optimism seen in the stock market as we near the third quarter indicates that the Federal Reserve may quickly hit a ceiling in how high they can raise interest rates.
- The 4-week average for initial unemployment claims increased, and negative survey results from the service sector signal the industry is getting nervous about inflation and the change in consumer spending.
- Homebuilders are losing confidence as existing home sales drop 5.4% in June, building permits are trending lower and foot traffic has declined.
- Amazon scoops up primary care company One Medical in deal valued at $3.9B
- West Coast ports reduce idling vessels as container supply increases
- Oh Snap! Snap shares plunge 25% as economy, fierce competition slow revenue growth
- AT&T tumbles as bill payment delays hurt annual cash flow, drags peers
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About the Author
Simeon Wallis, CFA
Chief Investment Officer At Aprio Wealth Management At Aprio Simeon is the Chief Investment Officer of Aprio Wealth Management and the Director of Aprio Family Office. Simeon brings two decades of professional investing experience in publicly traded and privately held companies, as well as senior-level operating and strategy consulting experiences.