Market Drama

Welcome to this week’s Market Drama!

• The Stock Market:
  • The S&P 500 was down and so was Nasdaq. 
    • The sell-off in stocks and bonds came in the back of Fitch downgrading the U.S. government credit rating. 
    • We had mixed data for jobs and wages. 
  • Earnings: 
    • So far 84% of S&P 500 companies have reported.
      • Expectations are that earnings will be down 5.2% year-over-year.
• Economic Data:
  • Slow hiring this Summer from U.S. employers. 
  • U.S payrolls came in shy of expectations at 187,000 (average last year were 400,000 per month). 
  • Payrolls expectations were 200,000.
  • Hourly wages ran hotter than expected at 4.4% year-over-year.

What to look out for this week: 

• CPI and PPI for July data. 

Stay tuned for next week. 

– Andres