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Stocks
Stocks were positive across the globe on a stronger than expected jobs report combined with earnings that have exceeded expectations. The S&P 500 rose 1.57% last week but remains down 5.47% year to date. Nasdaq stocks rebounded more aggressively, up 2.41% for the week but are still down 9.84% for the year. Small cap and International stocks were also positive for the week, but also remain down for the year.1
Fixed Income
US Aggregate bond performance was down 0.94% last week as interest rates continued their recent rise. The 10-yr US Treasury rate climbed to 1.93% to end the week, the highest close since December 2019. US Federal Reserve commentary continues to suggest short term rates may begin to rise as soon as March, with the market now expecting five rate hikes this year.1
Commodities
Oil prices continued to rise, with WTI Crude ending the week at $92.31 per barrel. This is the highest level since 2014. Gold prices ended the week at $1,805/oz and are flat for the year.2
Economic Data
Payroll data was surprisingly strong, with nonfarm payrolls rising by 467,000 in January. Leisure and hospitality led the gains, while wages also rose by 5.7% year over year. This level of strength was a surprise as recent commentary suggested numbers may be negatively impacted by last year’s related pauses in hiring.3
Company News4
United Parcel Service (UPS), a G50 holding, reported an earnings beat and provided guidance that exceeded expectations. The stock was up 13% for the week.5
Snap Inc (SNAP)6 and Amazon (AMZN)7, held in the G33 and Contrarian Choice portfolios, significantly rebounded off of recent weakness in the stocks. Both companies reported earnings that beat expectations. Shares of SNAP were up 28% for the week while Amazon rose by 9%.
Did you know…
That an astronaut was allergic to the moon? During the Apollo 17 mission, astronaut Harrison Schmitt found out that he had a severe reaction to moon dust.
Mariann Montagne, CFA
Portfolio Manager
Sources:
1 JP Morgan Weekly Market Recap 02-07-22
4 Stock prices from Stockcharts.com