Market Drama

Featuring Zoe CEO & Founder, Andres Garcia-Amaya, CFA

July 24, 2023 
Watch Time: 4 minutes
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Welcome to this week’s Market Drama!

  • The Stock Market:
    • The S&P 500 was up 0.7% for the week.
      • It’s up 18% year-to-date. 
    • Oil had a strong week as well, rebounded more than 2%.
    • We’ve seen the stock market rally off the October bear market lows. 
      • Big components of this change: inflation and earnings. 
      • If we hit the consensus expectation for earnings, we should see a drop of 9% year-over-year earnings for the S&P 500. This would mark the largest earnings decline reported by the index since Q2 of 2020. 
        • Analysts are predicting earnings growth of 0.1 centrally flat.
  • Economic Data:
    • Retail sales were up 0.2% month-over-month. 
      • Below the 0.5% expectations. 
      • Retail sales matter because consumption is 69% of GDP.
    • Consumers have been very resilient.
    • Housing starts fell to 1.4 million from 1.56 million the prior month. 
    • Initial jobless claims came in at 228,000 which was better than the expected 240,000.

What to look out for this week: 

  • The FOMC will take place Tuesday and Wednesday.
  • On Wednesday the Fed is expected to hike interest rates 25 basis points. 
    • What will they say after?
  • PCE inflation data comes out this week. 

Stay tuned for next week. Have a good one.

– Andres

Disclosure: This material provided by Zoe Financial is for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy, or investment product. Nothing in these materials is intended to serve as personalized tax and/or investment advice since the availability and effectiveness of any strategy is dependent upon your individual facts and circumstances. Zoe Financial is not an accounting firm – clients and prospective clients should consult with their tax professional regarding their specific tax situation. Opinions expressed by Zoe Financial are based on economic or market conditions at the time this material was written. Economies and markets fluctuate. Actual economic or market events may turn out differently than anticipated. Facts presented have been obtained from sources believed to be reliable. Zoe Financial, however, cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Zoe Financial does not provide legal advice.

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