A Safer Retirement and Environment – What We’re Implementing to Help Keep You Safe: READ MORE

Here at Integrity Financial, we are adhering to state and local guidelines in order to protect both the health and safety of clients and staff. Keeping our clients and staff safe is our highest priority and we’re taking all appropriate measures to ensure a safe environment. Should you prefer to not meet face-to-face, we are continuing to serve our clients through virtual settings such as Zoom or phone calls.

We look forward to continuing to help individuals and families achieve their ideal Retirement.

Integrity Financial
(903) 759-3335

CLOSE

 

Weekly Market Commentary

Weekly Market Commentary – 10/1/2021

-Darren Leavitt, CFA

Financial markets took a step back in the final week of the third quarter.  Increased inflation expectations pushed US Treasury yields higher, which induced valuation concerns on large-cap growth stocks. Rising energy costs were evident throughout the week and supported by supply concerns in the UK and China. Questions surrounding the infrastructure bill persisted while politicians found a resolution to fund the government through December 3rd.   Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen were in front of the Senate Banking Committee. Yellen reiterated that the debt ceiling would be exhausted by October 18th, and politicians needed to find a solution.  J Powell testified that inflation would likely be elevated for a while but was comfortable having it run above the Fed’s soft mandate of 2%.  Of note, Dallas Federal Reserve President Kaplan and Boston Federal Reserve President Rosengren tendered their resignation.

On the corporate news front, pharmaceutical company Merck announced that their oral antiviral Covid pill reduced hospitalizations and death by 50% and will seek emergency use authorization from the FDA.  Economic data for the week was mixed.

The S&P 500 lost 2.2% for the week, the Dow gave back 1.4%, the NASDAQ led declines with a 3.2% loss, and the Russell 2000 shed 0.3%.  The US Treasury curve steepened in what was another week of very volatile trade.  The 2-year note yield fell one basis point to 0.26%, while the 10-year bond yield increased one basis point to 1.47%.  However, intra-week, the 10-year yield touched 1.58%.  Oil prices gained another 2.5% or $1.87 to close at $75.87 a barrel.  Gold prices were up slightly, gaining $7 to close at $1758.80 an Oz.

High-frequency employment data was a bit weaker than expected.  Initial Claims came in at 362k versus expectations of 340K, and Continuing Claims came in at 2.802 million.  Interestingly, this weakness comes as job openings surged.  Also, a bit of a downer was the final reading of the Conference Board’s Consumer Confidence which ticked down to 109.3; the consensus estimate was 114.4, and the reading in August came in at 115.2.  Headline PCE prices were in line, as were the Core figures, but both data sets showed significant gains on a year-over-year basis, 4.3% and 3.6%, respectively, which are 30-year records! ISM manufacturing data continued to show signs of expansion, but data underneath the hood showed persistent problems in sourcing raw materials, transportation, and labor.  In China, ISM Manufacturing data signaled contraction coming in at 49.6.

Investment advisory services offered through Foundations Investment Advisors, LLC (“FIA”), an SEC registered investment adviser. FIA’s Darren Leavitt authors this commentary which may include information and statistical data obtained from and/or prepared by third party sources that FIA deems reliable but in no way does FIA guarantee the accuracy or completeness.  All such third party information and statistical data contained herein is subject to change without notice.  Nothing herein constitutes legal, tax or investment advice or any recommendation that any security, portfolio of securities, or investment strategy is suitable for any specific person.  Personal investment advice can only be rendered after the engagement of FIA for services, execution of required documentation, including receipt of required disclosures.  All investments involvement risk and past performance is no guarantee of future results. For registration information on FIA, please go to https://adviserinfo.sec.gov/ and search by our firm name or by our CRD #175083. Advisory services are only offered to clients or prospective clients where FIA and its representatives are properly licensed or exempted.

Ready To Take

THE NEXT STEP?

For more information about any of our products and services, schedule a meeting today.

Or give us a call at (903) 759-3335