For more market updates, subscribe to our YouTube channel!
Click here to subscribe!
Gradient Investments Weekly Talking Points 12/24/2021
All data is for the week ended December 24, 2021
Stocks
US markets continued to rally despite a worsening data set for COVID based on the Omicron variant and a potential step back in the spending agenda out of Washington. The S&P 500 was up 1.25% last week and is now up 27.59% year to date. Small cap stocks (Russell 2000) outperformed during the week and were up 4.15%. International stocks were less positive, with the developed markets (MSCI EAFE) up 0.64% while the emerging markets (MSCI EM) was down 0.30% for the week. 1
Fixed Income
US Aggregate bond performance was down 0.22% last week as US treasury rates rose. The 2-year US Treasury rate increased by 5 basis points to end at 0.71% while the 10-year US Treasury rose 9 basis points to end the week at 1.50%. 1
Commodities
Oil prices were up slightly, with WTI crude ending the week at $73.79 per barrel. Gold prices continued their rally off the early December bottom, with prices ending at $1,811.70 per ounce. 2
Economic Data
Consumer confidence numbers increased in December and November was revised upward. Expectations regarding short term growth improved as well, despite COVID data that is causing some businesses to scale back plans due to labor shortages. 3
Company News4
Paychex (PAYX), a G50 holding, reported earnings that beat expectations. Revenue growth was up 13% year over year while earnings growth was up 21%. The stock was up 8.35% for the week. 5
Did you know…
McDonalds once created bubble gum flavored broccoli. In 2014, the company introduced the flavored broccoli as a tastier version of the vegetable. McDonalds CEO Don Thompson admitted that it was a complete failure and kids were confused by the taste.
Mariann Montagne, CFA
Portfolio Manager
Sources:
1 JP Morgan Weekly Market Recap 12-27-21
4 Stock prices from Seeking Alpha.com