Market Recap July 5, 2024

Author

Amber Trusik
July 08, 2024

Weekly Market Recap: Week Ending July 5, 2024

Dow Jones Industrial Average

  • Weekly Change: +0.48%

  • Key Indicators: Trading above key moving averages (9 SMA, 21 EMA, 50 SMA, 200 SMA)

  • Formed a Green Hammer Candle on Friday, July 5, 2024 (a bullish trading pattern)

  • Trading in the bullish zone based on Triple Witching Day

  • RSI (Relative Strength Index) nearing 60

Nasdaq

  • Weekly Change: +3.29%

  • Key Indicators:Trading above key moving averages (9 SMA, 21 EMA, 50 SMA, 200 SMA)

  • Formed a Three White Soldiers Candle pattern on Friday, July 5, 2024 (a bullish trading pattern)

  • Trading in the bullish zone based on Triple Witching Day

  • RSI approaching 80

S&P 500

  • Weekly Change: +1.73%

  • Key Indicators:Trading above key moving averages (9 SMA, 21 EMA, 50 SMA, 200 SMA)

  • Formed a Three White Soldiers Candle pattern on Friday, July 5, 2024 (a bullish trading pattern)

  • Trading in the bullish zone based on Triple Witching Day

  • RSI approaching 80

VIX (Volatility Index)

  • Weekly Change: -1.56%

  • Summary: The decrease in the VIX indicates lower market volatility as indices increased.

Key Rates

  • Fed Funds Rate: 5.33%

  • SOFR Rate: 5.33%

  • TRIN: 1.13

  • US 2-Year Treasury Yield: 4.633%

  • US 10-Year Treasury Yield: 4.308%

  • WTI (West Texas Intermediate Crude Oil): ~$82 per barrel

Notable Stock Movement

  • Tesla (TSLA): +20.2% increase, driven by better-than-expected delivery figures. Tesla represents 2.37% of the Nasdaq as of June 20, 2024.

Economic Indicators

  • ISM Manufacturing PMI: Fell to 48.5 in June 2024 from 48.7 in May, below the forecast of 49.1, indicating a third consecutive month of declining manufacturing activity.

  • Construction Spending: Decreased by 0.1% month-over-month in May 2024, against expectations of a 0.1% rise.

  • JOLTS Data: Job openings rose by 221,000 in May 2024 to 8.140 million, surpassing the forecast of 7.91 million.

Federal Reserve Update

  • The Fed kept the target range for the fed funds rate steady at 5.25%-5.50% for the seventh consecutive meeting in June 2024, aligning with expectations. The dot plot suggests only one rate cut this year and four reductions in 2025.

Mortgage Rates

  • The average contract interest rate for 30-year fixed-rate mortgages rose to 7.03% in the week ending June 28, 2024, up from 6.93% the previous week.

Jobless Claims

  • Unemployment claims increased by 4,000 to 238,000 in the last week of June, slightly above the expected 235,000.

Non-Farm Payroll Data

  • The US added 206,000 jobs in June 2024, slightly below the revised 218,000 in May but above the forecast of 190,000. Significant job gains were seen in government, health care, social assistance, and construction sectors, while retail trade, manufacturing, and professional services saw declines.

Sources:

THIS IS NOT FINANCIAL ADVICE, THIS IS FOR INFORMATIONAL PURPOSES ONLY