Winthrop Partners Economic and Market Update 5-24-21

The Markets (as of market close May 21, 2021)

Stocks began last week mostly lower, pulled down by tech and consumer shares. Of the benchmark indexes listed here, only the Russell 2000 (0.1%) and the Global Dow (0.2%) were able to eke out gains. The Nasdaq dipped 0.4%, followed by the S&P 500, which lost 0.3%, and the Dow, which fell 0.2%. Treasury yields rose modestly, while crude oil prices rose 1.5%. The dollar was mixed to lower. Energy prices advanced 2.3% and materials climbed 0.9%. Tech shares dropped 0.7%, communication services declined 0.9%, and utilities fell 0.9%.

Stocks fell for the second consecutive day last Tuesday. The S&P 500 fell 0.9%, followed by the Dow, (-0.8%), the Russell 2000 (-0.7%), and the Nasdaq (-0.6%). The Global Dow inched ahead 0.1%. The yield on 10-year Treasuries was little changed, while crude oil prices and the dollar declined. The market sectors fared poorly, with energy (-2.6%), industrials (-1.5%), financials (-1.4%), communication services (-1.2%), and materials (-1.1%) the hardest hit.

Last Wednesday saw equities fall for the third consecutive day. Energy shares continued to decline, falling 2.5%. Among the remaining sectors, only information technology (0.3%) and communication services (0.1%) advanced. The Global Dow fell 1.3%, followed by the Russell 2000 (-0.8%), the Dow (-0.5%), and the S&P 500 (-0.3%). The tech-heavy Nasdaq closed the day effectively unchanged. Crude oil prices dropped for the second day in a row, while the dollar and Treasury yields rose.

Growth and tech stocks reversed course last Thursday, following three consecutive days of losses. Treasury yields, crude oil prices, and the dollar fell, while the major stock indexes gained, led by the Nasdaq, which advanced 1.8%. The S&P 500 climbed 1.1%, both the Russell 2000 and the Dow gained 0.6%, and the Global Dow added 0.4%. Among the market sectors, information technology (1.9%), communication services (1.7%), real estate (1.3%), and health care (1.0%) increased by at least 1.0%, while energy dipped 0.1%.

Crude oil prices rose for the first time in four sessions last Friday, a day in which stocks were mixed. Tech shares fell, dragging the Nasdaq down following the prior day’s rally. The S&P 500 also closed the day lower, while the Dow (0.4%) and the Russell 2000 (0.3%) advanced. Treasury yields were mixed and the dollar rose. Friday also saw the market sectors offer mixed returns, with financials, utilities, industrials, materials, and energy advancing, while communication services, consumer discretionary, consumer staples, health care, information technology, and real estate declined.

Stocks closed the week generally lower, with only the Nasdaq eking out a gain, in what proved to be a volatile week of trading. The Dow dropped 0.5%, followed by the S&P 500, the Russell 2000, and the Global Dow. The yield on 10-year Treasuries closed unchanged from the prior week. The dollar and crude oil prices fell, while the price of gold rose by 2.0%. Inflation fears, cryptocurrency volatility, and concerns that the Fed could tighten monetary policy appear to be driving much of the market lately. Despite this movement, the benchmark indexes remain well ahead of their respective prior-year values, led by the Global Dow, the Russell 2000, the Dow, the S&P 500, and the Nasdaq. Since the beginning of the year, crude oil prices are up more than 31.0%, which has driven gas prices up by more than $1.00 per gallon.

The national average retail price for regular gasoline was $3.028 per gallon on May 17, $0.067 per gallon more than the prior week’s price and $1.150 higher than a year ago. U.S. crude oil refinery inputs averaged 15.1 million barrels per day during the week ended May 14, which was 96,000 barrels per day more than the previous week’s average. Refineries operated at 86.3% of their operable capacity last week. Gasoline production increased last week, averaging 9.8 million barrels per day, up from the prior week’s average of 9.6 million barrels per day.  Click here for the entire article:Winthrop Partners Market and Economic Update 5-24-21