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The Financial Realities of Elder Care & Long-Term Care Insurance
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Stocks closed generally higher in July, despite a downturn at the end of the month. Second-quarter corporate earnings data was generally strong, although some mega-cap companies posted weaker-than-expected earnings results. Economic news was mostly favorable. The economy expanded at an annualized rate of 6.5%, 850,000 new jobs were added, while the number of new unemployment claims declined. Industrial production rose, as did new orders for durable goods.
The housing market showed signs of slowing from its torrid pace earlier in the year. Inflation continued to run hot as consumer prices jumped 0.9%. The Federal Reserve indicated that, while the economy continues to show signs of growth, the interest rate target range and bond-buying measures will remain in place for some time.
The major indexes enjoyed a strong month, led by the S&P 500. Only the Russell 2000 and the Global Dow failed to post monthly gains. Each of the benchmarks are well ahead of their 2020 year-end values, led by the S&P 500, followed by the Global Dow, the Dow, the Nasdaq, and the Russell 2000.
The market sectors ended the month generally higher, with health care (4.7%), real estate (4.6%), utilities (4.2%), and information technology (3.8%) advancing, while energy (-8.4%) and financial services (-0.6%) fell. Treasury yields, crude oil prices, and the dollar slid from the June closing values. Gold prices advanced.
MARKET/INDEX | AS OF 7/30 | PRIOR MONTH | 2020 CLOSE | MONTHLY CHANGE | YTD CHANGE |
---|---|---|---|---|---|
DJIA | 34,935.47 | 34,502.51 | 30,606.48 | 1.25% | 14.14% |
NASDAQ | 14,672.68 | 14,503.95 | 12,888.28 | 1.16% | 13.85% |
S&P 500 | 4,395.26 | 4297.50 | 3,756.07 | 2.27% | 17.02% |
RUSSELL 2000 | 2,226.25 | 2,310.55 | 1,974.86 | -3.65% | 12.73% |
GLOBAL DOW | 3981.32 | 4,001.68 | 3,487.52 | -0.51% | 14.16% |
FED. FUNDS | 0.00%-0.25% | 0.00%-0.25% | 0.00%-0.25% | 0 BPS | 0 BPS |
10-YEAR TREASURIES | 1.23% | 1.44% | 0.91% | -21 BPS | 32 BPS |
US DOLLAR-DXY | 92.14 | 92.34 | 89.84 | -0.22% | 2.56% |
CRUDE OIL-CL=F | $73.81 | $73.51 | $48.52 | -0.41% | 52.12% |
GOLD-GC=F | $1,816.70 | $1,770.50 | $1,893.10 | 2.61% | -4.04% |
Chart reflects price changes, not total return. Because it does not include dividends or splits, it should not be used to benchmark performance of specific investments.
While the summer began with an easing of pandemic-related restrictions, which helped spur economic growth, the rapid spread of the coronavirus, particularly the Delta strain, raises the possibility of reinstituting some of those same restrictions in August. Job growth and industrial production, which had been steadily improving, may be stunted as we move into the later part of the summer and into the fall.
Data sources: Economic: Based on data from U.S. Bureau of Labor Statistics (unemployment, inflation); U.S. Department of Commerce (GDP, corporate profits, retail sales, housing); S&P/Case-Shiller 20-City Composite Index (home prices); Institute for Supply Management (manufacturing/services). Performance: Based on data reported in WSJ Market Data Center (indexes); U.S. Treasury (Treasury yields); U.S. Energy Information Administration/Bloomberg.com Market Data (oil spot price, WTI, Cushing, OK); http://www.goldprice.org (spot gold/silver); Oanda/FX Street (currency exchange rates). News items are based on reports from multiple commonly available international news sources (i.e. wire services) and are independently verified when necessary with secondary sources such as government agencies, corporate press releases, or trade organizations. All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Past performance is no guarantee of future results. All investing involves risk, including the potential loss of principal, and there can be no guarantee that any investing strategy will be successful.
The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 largest, publicly traded companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange. The Russell 2000 is a market-cap weighted index composed of 2,000 U.S. small-cap common stocks. The Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide. The U.S. Dollar Index is a geometrically weighted index of the value of the U.S. dollar relative to six foreign currencies. Market indices listed are unmanaged and are not available for direct investment.
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