FEATURED MARKET DATA
Stimulus Spurs Economic Growth
The US economy grew at an annualized real rate of 6.5% in the second quarter. While strong, results were below expectations of 8.4%. Personal consumption of 11.8% led GDP growth despite a decline in direct economic impact payments to households. Other programs including loans and grants to businesses increased in the second quarter.
by Matt Orseske 
FEATURED MARKET DATA
Is Inflation Transitory?
It seems inflation is on everyone’s mind. Consumers are seeing prices rise most everywhere – from the gas pump, to the grocery store and home prices. Year-to-date, CPI has risen 3.3% in 2021 compared to 1.2% in 2019 and -0.8% in 2020. Many members of the Federal Reserve are also talking about inflation risks. The base case for most economists is that rising inflation is transitory and related to supply-chain bottlenecks and low prior year comparables.
by Laura Fox
FEATURED MARKET DATA
Reopening Stocks Outperform
Value stocks outperformed growth stocks in May, a trend which has persisted throughout 2021. Strong performance for value stocks is a reversal of last year’s trend when growth stocks, including technology shares, soared. A surge this year in business activity is driving up shares of more economically sensitive sectors such as manufacturing, energy and materials.
by Laura Fox
FEATURED MARKET DATA
Strong First Quarter Earnings
Publicly traded companies are reporting strong first quarter earnings. The fast recovery in corporate earnings is helping to justify soaring stock prices since markets bottomed in March 2020. As of April 30, stronger than expected earnings had been reported by 87% of S&P 500 companies who had reported earnings, according to market data firm Refinitiv.
by Laura Fox
FEATURED MARKET DATA
Rally in Small vs. Large Cap Stocks
Small cap stocks surged by an astounding 90% in the twelve months ending March 31 and have significantly outperformed large cap stocks. Only part of this can be explained by recent outperformance of value stocks compared to growth stocks.
by Laura Fox
FEATURED MARKET DATA
What is Driving Yields Higher?
Federal Reserve officials are actively working to reassure markets that the recent climb in market yields represents improving expectations for economic growth rather than future inflation. It is clear that the rise in rates is driven by multiple factors ranging from fundamentals supporting stronger growth to technical factors such as banks hedging mortgage portfolios and increased Treasury supply.
by Laura Fox
FEATURED MARKET DATA
Spread Sectors Add Income
Most sectors of the fixed income market offer Option Adjusted Spreads (OAS) which aid income. OAS represents the yield of a security or sector of the market in excess of a US Treasury security with the same maturity, adjusted for any embedded option such as a call option.
by Laura Fox
FEATURED MARKET DATA
Holiday Stress
Two main factors impacted consumers in December: 1) some regions of the U.S. saw increased restrictions due to rising Covid-19 cases and hospitalizations following the Thanksgiving holiday and 2) Congress spent most of the month in a standoff over whether to pass a new round of stimulus.
by Laura Fox
FEATURED MARKET DATA
Stocks Soar Despite Virus Risks
U.S. stock prices soared in November with news that several Covid-19 vaccine candidates may be highly effective coupled with a reduction in U.S. election uncertainty. Stocks were also aided by stronger corporate profits. Together, these factors propelled the S&P 500 index up nearly 11 % following two consecutive months of decline.
by Laura Fox
FEATURED MARKET DATA
Markets Loathe Uncertainty
U.S. stocks as measured by the S&P 500 index declined for the second consecutive month in October. Market volatility has been heightened based on rising COVID-19 cases domestically and abroad, negotiations for additional fiscal stimulus, and uncertainty surrounding the U.S. election.
by Laura Fox 