News & Commentary

Market Week: July 25, 2022

By: Miguel Sosa, CIMA®

The Markets (as of market close July 22, 2022)


Stocks ended last week in the black, with the market posting its best week in a month. Despite a late-week decline, each of the benchmark indexes listed here posted solid weekly gains, led by the Russell 2000 and the Nasdaq. Bond prices rose, pulling yields lower. Crude oil prices ended a volatile week down by about $3.00 per barrel. The dollar edged lower, while gold prices advanced.

Wall Street began last week on a sour note as each of the benchmark indexes listed (except for the Global Dow) lost value. The S&P 500 and the Nasdaq led the declines, dropping 0.8%. The Dow fell 0.7% and the Russell 2000 dipped 0.3%. The Global Dow rose 0.6%. Tech and health-care shares waned after a large tech company announced plans to slow hiring and spending next year in anticipation of a possible economic downturn. Ten-year Treasury yields climbed 3.0 basis points to close at 2.96%. Crude oil prices gained $4.58 to push the price per barrel to $102.17. The dollar fell, but gold prices rose higher.

Stocks surged higher last Tuesday, pushing each of the benchmark indexes up by at least 2.0%. Strong corporate quarterly earnings reports may have given traders confidence that the economy is still strong, despite rising inflation and corresponding interest rates. The Russell 2000 led the upswing, gaining 3.5%, while the Nasdaq jumped up 3.1%. The S&P 500 (2.8%) and the Dow (2.4%) advanced notably. The Global Dow rose 2.1%. Crude oil prices continued to climb above $100.00 per barrel, reaching $104.10 per barrel after rising $1.50. Ten-year Treasuries added nearly 6.0 basis points to settle at 3.01%. The dollar slid lower for the second day, while gold prices advanced.

The S&P 500 posted its first back-to-back gains in nearly two weeks after advancing 0.6% last Wednesday. The Nasdaq and the Russell 2000 led the indexes, advancing 1.6% as tech shares climbed higher for the second straight day. The Dow inched up 0.2%, while the Global Dow was unchanged. Ten-year Treasury yields inched up to 3.03%. Crude oil prices slipped down to $102.61 per barrel. The dollar advanced, while gold prices fell.

Stocks enjoyed their best three-day rally since May last Thursday. Tech shares led the charge once again, with the Nasdaq gaining 1.4% by the close of trading. The S&P 500 added 1.0%, while the Dow and the Russell 2000 rose 0.5%. The Global Dow was flat for the second day in a row. Ten-year Treasury yields dipped 12.6 basis points, slipping to 2.91%, likely influenced by the European Central Bank's 50 basis-point interest rate hike — the first one since 2011. The dollar fell, while gold prices advanced. Crude oil prices slid $3.45, reaching $96.43 per barrel.

Stocks fell last Friday, ending a three-day rally. Investors retreated from risk following disappointing earnings reports from some social media companies. Tech shares gave back much of the gains from earlier in the week, pulling the Nasdaq down 1.9%, while the Russell 2000 fell 1.6%. The large caps of the S&P 500 (-0.9%) and the Dow (-0.4%) ended the day down, while the Global Dow ended flat for the third consecutive day. Yields on 10-year Treasury yields slid nearly 13.0 basis points to close at 2.78%. Crude oil prices declined to $94.65 per barrel. The dollar dipped, while gold prices rose.

Eye on the Week Ahead

This week is replete with market-moving economic data, headlined by the Federal Open Market Committee meeting. Also out this week is the initial estimate of the second-quarter gross domestic product. The economy retracted 1.6% in the first quarter.

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); 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. Forecasts are based on current conditions, subject to change, and may not come to pass. U.S. Treasury securities are guaranteed by the federal government as to the timely payment of principal and interest. The principal value of Treasury securities and other bonds fluctuates with market conditions. Bonds are subject to inflation, interest-rate, and credit risks. As interest rates rise, bond prices typically fall. A bond sold or redeemed prior to maturity may be subject to loss. 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 indexes listed are unmanaged and are not available for direct investment.

Eye on the Week Ahead


This week is replete with market-moving economic data, headlined by the Federal Open Market Committee meeting. Also out this week is the initial estimate of the second-quarter gross domestic product. The economy retracted 1.6% in the first quarter.

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); 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. Forecasts are based on current conditions, subject to change, and may not come to pass. U.S. Treasury securities are guaranteed by the federal government as to the timely payment of principal and interest. The principal value of Treasury securities and other bonds fluctuates with market conditions. Bonds are subject to inflation, interest-rate, and credit risks. As interest rates rise, bond prices typically fall. A bond sold or redeemed prior to maturity may be subject to loss. 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 indexes listed are unmanaged and are not available for direct investment.





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These materials are not intended to be an advertisement or research and may not be distributed in states where Premia is not registered, or countries or jurisdictions where not permitted by law. Any discussion of
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or pursue any investment strategy. These materials do not purport to contain all the relevant information that investors may wish to consider in making investment decisions and are not intended to be a substitute
for exercising independent judgment. We recommend that investors independently evaluate the appropriateness of a particular investment or strategy and consult with an attorney, or tax professional regarding their specific legal or tax situation. Premia does not offer tax or legal advice. No representations are made that investors will be able to avoid loss, or achieve a certain level of performance. Investment
results will fluctuate and may be highly volatile, particularly over the short term. Diversification does not protect against loss. Our views are subject to change at any time without an obligation to provide an
update. Although the information distributed is based on sources believed to be reliable. We do not warrant its completeness accuracy.


Premia Global Advisors LLC (“Premia”) is a U.S. Securities and Exchange Commission (“SEC”) registered investment advisor located in Coral Gables, Florida. Registration as an investment advisor does not imply
any level of skill or training. A copy of Premia’s Form ADV Part 2A Brochure which includes a description of Premia’s services, fees and business practices is filed with the SEC and available by contacting us, or at
the SEC’s website ( www.adviserinfo.sec.gov). Premia and Broadridge are unaffiliated companies.

These materials are not intended to be an advertisement or research and may not be distributed in states where Premia is not registered, or countries or jurisdictions where not permitted by law. Any discussion of investment strategies, products, or services is for information purposes only and should not be deemed to constitute the provision of investment advice, or a recommendation, or offer to purchase, or sell securities
or pursue any investment strategy. These materials do not purport to contain all the relevant information that investors may wish to consider in making investment decisions and are not intended to be a substitute
for exercising independent judgment. We recommend that investors independently evaluate the appropriateness of a particular investment or strategy and consult with an attorney, or tax professional
regarding their specific legal or tax situation. Premia does not offer tax or legal advice. No representations are made that investors will be able to avoid loss, or achieve a certain level of performance. Investment
results will fluctuate and may be highly volatile, particularly over the short term. Diversification does not protect against loss. Our views are subject to change at any time without an obligation to provide an
update. Although the information distributed is based on sources believed to be reliable. We do not warrant its completeness accuracy.

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