Weekly Wrap

Stocks rebounded sharply this week, with the S&P 500 (+3.6%), Nasdaq Composite (+5.2%), and DJIA (+3.0%) all posting strong gains as investors embraced another wave of encouraging corporate earnings, renewed leadership from artificial intelligence-related stocks, and easing geopolitical tensions in the Middle East. The rally extended well beyond the market's largest companies, with the Russell 2000 (+3.5%) and S&P Mid Cap 400 (+3.4%) also turning in impressive performances.

Technology regained its position as the market's primary leadership group after a difficult July. The information technology sector surged 7.2% for the week as semiconductor stocks staged a powerful rebound, lifting the PHLX Semiconductor Index 9.3%. Software shares also participated in the advance, with the iShares Expanded Tech-Software ETF climbing 8.6% as investors broadly rewarded stronger-than-expected earnings across AI infrastructure and enterprise software companies. The rebound was accompanied by renewed strength across the market's largest growth stocks, sending the Vanguard Mega Cap Growth ETF 5.2% higher. While several individual earnings reports generated sharp stock-specific moves throughout the week, the broader takeaway remained intact: investor confidence in AI spending and monetization improved considerably after last week's volatility, allowing growth-oriented stocks to reassert market leadership.

The rally was not confined to technology. Materials (+5.6%) ranked among the week's strongest sectors as precious metals prices climbed, while consumer discretionary (+2.8%) and industrials (+2.0%) also participated in the advance. Homebuilders stood out as one of the market's strongest industry groups, with the iShares U.S. Home Construction ETF jumping 7.2%, as declining Treasury yields later in the week improved the outlook for other interest-rate-sensitive industries.

A meaningful improvement in the geopolitical backdrop also supported risk appetite. Crude oil prices tumbled roughly 10.3% for the week after President Trump called off planned strikes against Iran, while reports throughout the week pointed toward continued negotiations aimed at reopening the Strait of Hormuz. Although oil briefly rebounded following renewed attacks in the Red Sea, investors increasingly viewed supply disruptions as less likely, leaving the energy sector (-3.3%) as one of the week's weakest performers.

Friday's July Employment Situation Report provided another important tailwind after showing essentially no payroll growth alongside sizeable downward revisions to prior months. The softer labor-market data prompted investors to scale back expectations for additional Federal Reserve tightening, sending Treasury yields lower and providing another boost to growth-oriented and other rate-sensitive areas of the market. That shift leaves next week's Consumer Price Index report as the market's next major catalyst, with investors looking for confirmation that inflation continues to cool enough to keep policymakers on hold.

• Nasdaq Composite: +5.2% week-to-date
• S&P 500: +3.6% week-to-date
• Russell 2000: +3.5% week-to-date
• S&P Mid Cap 400: +3.4% week-to-date
• DJIA: +3.0% week-to-date

Monday:

The first trading session of August belonged to mega-cap technology stocks, as investors built on last week's strong earnings-driven momentum and embraced easing geopolitical tensions. The S&P 500 rose 1.5%, closing above the 7,600 level for the first time since June 2, while the Nasdaq Composite climbed 2.1% and the DJIA advanced 1.3% to notch an all-time closing high.

Leadership once again came from the market's largest companies. Six of the seven "Magnificent Seven" components finished firmly higher, lifting the Vanguard Mega Cap Growth ETF 2.2%. The communication services sector (+4.3%) paced the market as Alphabet (GOOG 372.47, +15.82, +4.44%) extended its recovery from a recent post-earnings selloff and Meta Platforms (META 590.24, +33.53, +6.02%) continued its rebound from multi-month lows.

The consumer discretionary sector (+2.7%) also turned in a strong performance as Tesla (TSLA 322.08, +10.87, +3.49%) attracted another round of buy-the-dip buying, while Amazon (AMZN 284.02, +12.44, +4.58%) built on last week's earnings-fueled surge and became the latest U.S. company to surpass a $3 trillion market capitalization.

The top-weighted information technology sector (+1.6%) was another standout, supported by continued strength in Microsoft (MSFT 487.65, +22.93, +4.93%) following last week's earnings report and a solid gain in NVIDIA (NVDA 206.64, +5.89, +2.93%), which reclaimed its 50-day moving average (205.85).

The sector steadily improved throughout the session due to a sharp reversal in semiconductor stocks. After opening with losses approaching 3%, the PHLX Semiconductor Index fought back to finish 1.1% higher, while software shares also enjoyed a strong session, lifting the iShares Expanded Tech-Software Sector ETF (IGV) 3.0%.

Investors now turn their attention to another busy stretch of tech earnings, with Palantir Technologies (PLTR 125.65, +2.59, +2.10%) set to report after the close, while Advanced Micro Devices (AMD 484.64, +8.49, +1.78%) and several memory companies including Sandisk (SNDK 1288.03, +73.20, +6.03%) report in the coming days.

Although mega-cap technology once again accounted for much of the index-level advance, participation remained healthy across the broader market. The S&P 500 Equal Weight Index climbed 1.0%, eight of the 11 S&P 500 sectors finished higher, and advancers comfortably outpaced decliners throughout the session. Smaller-cap stocks also participated, with the Russell 2000 rising 1.7% and the S&P Mid Cap 400 gaining 1.1%.

Lower oil prices provided another tailwind for equities. WTI crude oil futures settled $4.21 lower (-5.0%) at $80.36 per barrel after President Trump called off planned strikes against Iran. Reports also indicated that discussions between U.S. and Iranian officials remain ongoing, although Iranian officials have continued to publicly downplay or deny the extent of those talks. The energy sector (-1.5%) finished as the session's primary laggard, with Exxon Mobil (XOM 155.05, -0.39, -0.25%) and Chevron (CVX 193.18, -3.65, -1.85%) also pressured after President Trump said oil companies were earning excessive profits and should lower retail gasoline prices.

Elsewhere, the consumer staples (-0.3%) and health care (-0.2%) sectors posted modest losses as investors rotated away from more defensive areas of the market in favor of higher-growth opportunities.

The market's leadership remained firmly tilted toward mega-cap technology stocks, but today's session also offered encouraging signs beneath the surface. Solid breadth, a sharp recovery across semiconductor stocks after an early selloff, and easing geopolitical concerns combined to give equities a strong start to August, leaving the S&P 500 at its highest closing level in two months as another busy week of earnings gets underway.

U.S. Treasuries began August with a rally that lifted the 10-year and 30-year note yields off their worst levels of the year. The 2-year note yield settled down four basis points to 4.25%, and the 10-year note yield settled down six basis points to 4.69%. 

Reviewing today's data:

• July S&P Global U.S. Manufacturing PMI - Final 53.9; Prior 53.8
• June Construction Spending -0.1% (Briefing.com consensus 0.3%); Prior was revised to 0.0% from 0.1%
  • The key takeaway from the report is that the softness was driven entirely by residential spending.
• July ISM Manufacturing Index 55.6% (Briefing.com consensus 54.0%); Prior 53.3%
  • The key takeaway from the report is that manufacturing activity picked up steam in July, with the PMI logging its highest reading since May 2022.

Tuesday:

Stocks extended Monday's rally with another powerful advance as strong post-earnings reactions and a sharp rebound across semiconductor stocks continued to fuel the market's recovery. The S&P 500 rose 1.8% to claim record highs and close above the 7,700 level for the first time, while the DJIA gained 1.7%, also notching record highs. The technology-heavy Nasdaq Composite outperformed with a 2.6% gain, while the Russell 2000 (+1.9%) and S&P MidCap 400 (+1.8%) also posted strong advances, with the MidCap 400 finishing at a fresh all-time high.

Corporate earnings continued to shape leadership across the market, with investors rewarding strong results while rotating back into many of the technology names that struggled throughout July. The information technology sector climbed 4.1% as the PHLX Semiconductor Index surged 6.6%, extending yesterday's reversal with another broad-based advance. Marvell (MRVL 218.59, +24.82, +12.81%), Intel (INTC 100.94, +9.94, +10.92%), and Sandisk (SNDK 1427.62, +139.59, +10.84%) were among the group's standout performers, while software stocks also enjoyed another strong session. Palantir Technologies (PLTR 162.61, +36.96, +29.42%) finished as the S&P 500's top performer following its blowout earnings report, lifting the iShares Expanded Tech-Software Sector ETF (IGV) 4.7%.

The market's largest technology companies also remained a major source of strength. Microsoft (MSFT 492.81, +5.16, +1.06%) and NVIDIA (NVDA 211.94, +5.30, +2.56%) added to Monday's gains, while the broader rebound across semiconductor stocks helped reinforce the technology sector's leadership after a difficult July.

Outside of technology, several cyclical sectors also contributed meaningfully to the advance. The materials sector (+2.0%) benefited from continued strength in Freeport-McMoRan (FCX) as precious metals prices climbed, while the industrials sector (+1.8%) drew support from gains in electrical equipment stocks and a strong post-earnings rally in Caterpillar (CAT 876.54, +46.51, +5.60%) after the company delivered a beat-and-raise quarter.

The financials sector (+0.9%) also finished firmly higher, with Goldman Sachs (GS 1052.98, +25.92, +2.52%) and JPMorgan Chase (JPM 357.52, +4.88, +1.38%) helping lift the DJIA to another record close.

Although technology once again accounted for much of the index-level advance, participation broadened noticeably throughout the day. The S&P 500 Equal Weight Index climbed 1.4% after trailing the market-weighted index by a wider margin for most of the session. The strong gains in the Russell 2000 and S&P MidCap 400 further underscored investors' willingness to move beyond the market's largest companies.

Five S&P 500 sectors nevertheless finished lower as investors rotated away from more defensive areas of the market. The utilities (-0.6%) and health care (-0.1%) sectors lagged amid today's risk-on tone, with NRG Energy (NRG 117.04, -21.43, -15.48%) weighing on the former after missing earnings expectations.

The energy sector (-0.5%) also finished lower as WTI crude oil futures settled down $4.63 (-5.8%) at $75.73 per barrel after Treasury Secretary Scott Bessent said the U.S. and Iran could soon reach an agreement to reopen the Strait of Hormuz, helping send Treasury yields lower across the curve.

The consumer discretionary (-0.5%) faced pressure as Amazon (AMZN 277.42, -6.60, -2.32%) gave back a portion of yesterday's post-earnings gain. Aptiv (APTV 47.72, -9.51, -16.62%) slumped following a revenue miss, while Chipotle Mexican Grill (CMG 33.83, -3.64, -9.70%) sold off intraday after reports of a possible salmonella outbreak.

Elsewhere, the real estate sector (-0.1%) posted a modest decline as Alexandria RE (ARE 48.87, -4.16, -7.84%) weakened following its quarterly results.

The market's tone continues to improve after July's semiconductor-driven pullback, with investors increasingly rewarding strong corporate results while easing geopolitical tensions provide an additional tailwind. Attention now turns to another busy stretch of technology earnings, with Advanced Micro Devices (AMD 518.58, +33.94, +7.00%) and SpaceX (SPCX 126.06, +11.53, +10.07%) set to report after the bell, providing the next important test of whether mega-cap tech leadership can continue through the early stages of August.

U.S. Treasuries extended Monday's rebound from their July plunge, though even with today's steady buying, yields only made it back to their highs from May. The 2-year note yield settled down five basis points to 4.20%, and the 10-year note yield settled down six basis points to 4.63%. 

Reviewing today's data:

• June Trade Balance -$73.3 bln (Briefing.com consensus -$73.0 bln); Prior -$77.6 bln
  • The key takeaway from the report is that, while the real goods deficit narrowed to $94.5 billion in June from $99.8 billion in May, the Q2 average is still 18% greater than the Q1 average, so it will be factored in as a drag on Q2 GDP.
• June Factory Orders -0.3% (Briefing.com consensus 0.2%); Prior was revised to -1.1% from -1.3%
  • The key takeaway from the report is rooted in the strong business investment activity, which shows up in the 1.2% increase in new orders for capital goods, excluding aircraft, that followed a 1.9% increase in May.
• June JOLTs - Job Openings 7.359 mln; Prior was revised to 7.537 mln from 7.594 mln

Wednesday:

After a powerful four-session advance that lifted the S&P 500 nearly 6% while carrying it to fresh record highs, stocks took a breather on Wednesday as investors digested another busy round of earnings reports and corporate headlines. The S&P 500 (-0.2%) finished modestly lower, while the Nasdaq Composite slipped 0.8% and the DJIA gained 0.5%. Despite the mixed finish, the S&P 500, DJIA, Russell 2000 (-0.6%), and S&P Mid Cap 400 (-0.5%) all notched fresh record intraday highs before retreating from their best levels.

The broader tone nevertheless remained constructive, as another encouraging earnings backdrop and continued progress toward easing tensions in the Middle East helped offset some profit-taking after this week's powerful rally.

The communication services sector (-2.4%) finished as the market's weakest performer. Alphabet (GOOG 360.13, -15.22, -4.05%) came under pressure after The Wall Street Journal reported that Google Chief Scientist and AI strategy leader Jeff Dean will leave the company to launch a startup focused on scientific discovery.

The sector also faced pressure from wireless providers after SpaceX (SPCX 108.27, -17.06, -13.61%) said on its earnings call that it plans to enter the wireless market.

Weakness in Amazon (AMZN 272.65, -4.77, -1.72%) and Tesla (TSLA 321.55, -5.80, -1.77%) further highlighted today's pause across several of the market's recent mega-cap leaders, leaving the consumer discretionary sector (-0.3%) modestly lower despite relative strength elsewhere.

The information technology sector spent most of the session with a solid gain but retreated to finish little changed as the PHLX Semiconductor Index slipped 1.4% into the close. Advanced Micro Devices (AMD 482.05, -36.53, -7.04%) was a notable laggard after a strong run into its earnings report. NVIDIA (NVDA 219.22, +7.28, +3.43%) remained a notable source of support after SpaceX said on its earnings call that it plans to build exclusively on NVIDIA's Vera Rubin architecture, helping keep the sector out of negative territory.

Attention now shifts to another important test for the memory trade after the close, with Sandisk (SNDK 1350.50, -77.12, -5.40%) and Western Digital (WDC 519.17, -29.39, -5.36%) set to report earnings. Both stocks also came under pressure into the close ahead of their reports.

Outside of technology, leadership remained familiar. The materials sector (+1.5%) outperformed behind continued strength in precious metals prices, lifting Newmont Corporation (NEM 104.27, +6.54, +6.69%) among the day's best-performing S&P 500 components.

The health care sector (+1.3%) also finished near the top of the leaderboard as Eli Lilly (LLY 1168.77, +53.09, +4.76%) and Amgen (AMGN 407.83, +17.81, +4.57%) built on well-received earnings reports, with the latter helping support the DJIA.

The energy sector (-2.0%) remained under pressure as WTI crude oil futures settled down $0.55 (-0.7%) at $75.18 per barrel. The Wall Street Journal reported that Iran and Oman are finalizing a draft agreement to reopen the Strait of Hormuz that would prohibit Iran from charging tolls or transit fees, reinforcing expectations that disruptions to global oil shipments could continue to ease.

Elsewhere, the utilities sector (-1.0%) remained out of favor as investors continued rotating away from more defensive areas of the market.

Although today's session interrupted the market's recent string of outsized gains, the underlying backdrop changed little. Earnings results have generally continued to exceed expectations, geopolitical risks have eased further, and today's relatively orderly consolidation followed one of the strongest four-session advances of the year. Investors will now look to another round of semiconductor earnings to determine whether technology leadership can reassert itself after today's pause.

U.S. Treasuries inched higher on Wednesday, securing their third consecutive advance that pressured yields on longer tenors to one-week lows. The 2-year note yield settled down two basis points to 4.18%, and the 10-year note yield settled down one basis point to 4.62% . 

Reviewing today's data:

• Weekly MBA Mortgage Applications Index -2.9%; Prior -6.4%
• July ADP Employment Change 44K (Briefing.com consensus 75K); Prior was revised to 95K from 98K
• July S&P Global U.S. Services PMI - Final 54.6; Prior 53.6
• July ISM Non-Manufacturing Index 54.1% (Briefing.com consensus 54.7%); Prior 54.0%
  • The key takeaway from the report is the understanding that services sector activity continues to run at a solid pace despite the persistence of ongoing cost pressures.

Thursday: 

After a relatively quiet start, stocks drifted lower on Thursday as an intraday surge in oil prices outweighed an early rebound across technology stocks and another generally encouraging batch of corporate earnings. The S&P 500 slipped 0.2%, giving back an early gain but finding some support near the 7,700 level, while the Nasdaq Composite edged 0.1% lower and the DJIA lagged with a 0.9% decline. The Russell 2000 (-0.6%) and S&P MidCap 400 (-0.3%) also retreated from yesterday's record highs.

Technology initially provided a stabilizing influence after opening the session under pressure. Sandisk (SNDK 1258.58, -91.92, -6.81%) and Western Digital (WDC 451.52, -67.65, -13.03%) both suffered sharp opening losses following their earnings reports, but recovered considerably from their worst levels as the morning progressed. Sandisk delivered strong quarterly results, though its guidance disappointed investors, while Western Digital appeared to face some profit-taking after its recent rally as investors looked for a more robust report. The recovery in both memory names helped spark an early rebound across the broader semiconductor group. The PHLX Semiconductor Index climbed more than 1.0% before surrendering most of that advance to finish just 0.3% higher. Gains were relatively modest but consistent across much of the group, with Advanced Micro Devices (AMD 489.28, +7.23, +1.50%) reclaiming a portion of its post-earnings decline.

The information technology sector (+0.1%) finished as one of just three S&P 500 sectors in positive territory. Software remained a weak spot within the sector. AppLovin (APP 335.67, -82.13, -19.66%) plunged after reporting in-line earnings and weaker-than-expected revenue, while Datadog (DDOG 229.29, -53.88, -19.03%) sold off as investors focused on a slowdown in sequential growth. Those declines weighed on the iShares GS Software ETF (IGV 99.46, -1.86, -1.83%), though continued strength in Microsoft (MSFT 499.86, +12.40, +2.54%) helped offset some of the weakness.

The early rebound in technology took some momentum away from the broader market, which had initially benefited from strength across more defensive and cyclical areas. The tone shifted late in the morning, however, after reports that Houthi forces had attacked a Saudi-flagged tanker in the Red Sea sent oil prices sharply higher. Reuters later reported that a draft version of the proposed U.S.-Iran agreement, which is expected to be voted on by Iran's parliament, would prohibit U.S.- and Israel-linked vessels from transiting the Strait of Hormuz. WTI crude oil futures settled $2.09 higher (+2.8%) at $77.27 per barrel, leaving the energy sector (+1.6%) as the clear standout. The increase in oil prices also pushed Treasury yields higher, contributing to a less supportive backdrop for stocks throughout the remainder of the session.

The health care sector (+0.1%) eked out a modest gain shortly before the close, joining energy and information technology as the only sectors to finish higher.

Meanwhile, the communication services sector (-0.7%) ranked among the day's weakest performers. Alphabet (GOOG 356.62, -3.51, -0.97%) remained under pressure following reports yesterday that several high-profile AI leaders are leaving the company. Bloomberg also reported that the company is preparing to raise approximately $25 billion through a bond offering. The Trade Desk (TTD 17.67, -1.29, -6.80%) added to the sector's weakness ahead of its earnings report after the close.

The industrials sector (-0.8%) also lagged as Honeywell (HON 240.74, -7.38, -2.97%) and Axon (AXON 522.46, -87.03, -14.28%) suffered sharp post-earnings declines. The group faced additional pressure from oil-sensitive airline and trucking names as crude prices climbed.

Elsewhere, the materials sector (-0.9%) pulled back following its strong start to the week, while the utilities (-0.9%) and real estate (-1.0%) sectors continued to underperform.

Today's action marked another pause following the market's strong rally earlier this week, as investors continued to reward solid earnings while holding technology companies to a high bar. Attention now turns to Friday's July Employment Situation Report and next week's Consumer Price Index, with the latter taking on added significance after the Financial Times reported that Fed Chair Kevin Warsh remains open to raising rates at the upcoming FOMC meeting if inflation fails to cool.

U.S. Treasuries retreated on Thursday, pulling back from three days of steady gains. The 2-year note yield settled up seven basis points to 4.25% and the 10-year note yield settled up five basis points to 4.67%. 

Reviewing today's data:

• Q2 Productivity - Prel 1.4% (Briefing.com consensus 0.8%); Prior was revised to 0.8% from 0.3%, Q2 Unit Labor Costs - Prel 1.3% (Briefing.com consensus 1.7%); Prior was revised to 1.3% from 1.8%
  • The key takeaway from the report is that rising productivity helped keep labor costs in check.
• Weekly Initial Claims 199K (Briefing.com consensus 200K); Prior was revised to 198K from 197K, Weekly Continuing Claims 1.801 mln; Prior was revised to 1.777 mln from 1.782 mln
  • The key takeaway from the report, once again, is the extraordinarily low level of initial jobless claims, which reflects an environment in which employers are still reluctant to cut staff. That will be read as a good sign for economic demand.
• June Wholesale Inventories 0.2% (Briefing.com consensus 0.3%); Prior 0.3%

Friday:

Stocks finished the week on a positive note Friday as a softer-than-expected July employment report eased concerns about additional Federal Reserve tightening and renewed buying across growth-oriented and other rate-sensitive areas of the market. The S&P 500 gained 0.6% to notch a record closing high, the Nasdaq Composite climbed 1.3%, and the DJIA advanced 0.3%, leaving each major average with a weekly gain of at least 3.0%. The Russell 2000 (+1.1%) and S&P MidCap 400 (+1.3%) also turned in strong performances.

The July employment report provided the day's primary catalyst, showing no payroll growth during the month alongside a sizable downward revision to June. The softer labor-market picture prompted investors to dial back expectations for additional Fed tightening and sent Treasury yields lower. According to the CME FedWatch tool, the probability of a 25-basis point rate increase at the September FOMC meeting fell to 41.9% from 55.0% on Thursday, while the probability of at least one rate hike by October dropped to 57.3% from 71.0%. That shift in expectations provided a meaningful tailwind for growth-oriented and other interest-sensitive areas of the market.

Technology was a major beneficiary of the friendlier rate backdrop. The information technology sector (+1.3%) finished among the market's leaders as the PHLX Semiconductor Index climbed 2.6%, extending this week's rebound. Software stocks also enjoyed another strong session, lifting the iShares GS Software ETF (IGV) 3.3%. Cloudflare (NET 300.27, +15.84, +5.57%) rallied following its earnings report, while Palantir Technologies (PLTR 172.01, +16.09, +10.32%) added to its impressive gains from earlier in the week. Datadog (DDOG 233.93, +4.64, +2.02%) and AppLovin (APP 346.80, +11.13, +3.32%) also recovered a portion of Thursday's sharp post-earnings losses.

Strength extended well beyond technology. The consumer discretionary sector (+1.3%) benefited from a solid gain in Tesla (TSLA 328.58, +9.05, +2.83%), a strong post-earnings reaction in Airbnb (ABNB 178.07, +26.43, +17.43%), and buying interest across homebuilders and other rate-sensitive industries.

The materials sector (+1.5%) also outperformed as Newmont Corporation (NEM 112.98, +7.55, +7.16%) surged alongside a rebound in precious metals prices.

Mega-cap stocks remained an important source of support, with the Vanguard Mega Cap Growth ETF rising 0.9%. SpaceX (SPCX 133.11, +18.19, +15.83%) also posted a strong rebound, recovering much of its post-earnings decline from earlier this week. At the same time, solid gains in the Russell 2000 and S&P MidCap 400 underscored that Friday's advance extended well beyond the market's largest companies.

There were still a few notable pockets of weakness. The communication services sector (-0.4%) finished lower as The Trade Desk (TTD 13.80, -3.87, -21.90%) remained under heavy pressure following its earnings report, while Alphabet (GOOG 353.47, -3.15, -0.88%) extended its recent weakness after reports earlier this week of several senior AI departures.

The energy sector (-1.2%) was the day's primary laggard despite another increase in crude oil prices. WTI crude futures settled $0.92 higher (+1.2%) at $78.19 per barrel, though prices retreated after the close following reports that Oman and Iran are making progress toward an agreement to reopen the Strait of Hormuz.

The financials sector (-0.3%) rounded out the three S&P 500 sectors that finished lower.

Friday's advance capped an impressive week for equities, with a softer labor-market report complementing an already strong earnings backdrop. The resulting decline in Fed tightening expectations makes next week's July Consumer Price Index particularly important, as investors look for confirmation that inflation is easing enough to keep policymakers on hold.

U.S. Treasuries climbed on Friday, extending this week's rebound off July lows with unexpected help from a disappointing Employment Situation report for July. The 2-year note yield settled down five basis points to 4.20% (-9 basis points this week), and the 10-year note yield settled down two basis points to 4.65% (-10 basis points this week).

Reviewing today's data:

• The July employment report falls into the domain of "bad news is good news." Participants are recognizing that nonfarm payroll growth was weak (actually, there was no growth), that wage inflation disinflated, and that the labor force participation rate continues to dwindle.
  • The key takeaway from the report is that it was soft enough, presumably, to keep Fed officials in a wait-and-see mode, such that they could see a better case now for not raising the target range for the fed funds rate at the September FOMC meeting.
• Consumer credit increased by $14.2 bln in June (Briefing.com consensus $9.0 bln) following a downwardly revised $1.1 billion decline (from -$0.2 billion) in May.