Basis Points – August 17, 2023

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Market Rally Taking a Pause

After an incredible start so far in 2023, stocks have been relatively soft in August. Treasury yields pushed higher, cooling mega-cap growth shares, which are generally sensitive to interest rate movements. Several market sectors ended the week lower, with Information Technology (-4.3%) and Consumer Discretionary (-2.3%) falling the furthest, while Energy (+3.6%) and Health Care (+2.1%) advanced the most. Despite a soft start in August, the S&P 500 is still up over 17% this year.


Inflation Driven by Shelter Costs

The consumer price index (CPI) rose 0.2% in July, the same increase as in June. For the 12 months that ended in July, CPI rose 3.2%, compared to 3.0% for June. Consumer prices less food and energy (Core CPI) also advanced 0.2%, matching the June increase. Year over year, Core CPI dipped 0.1% to 4.7%. Shelter was the largest contributor accounting for over 90% of the increase.


Disney Joins Streaming Services Struggling

Disney missed analysts’ expectations for revenue and earnings per share in the third quarter of fiscal 2023. The company’s streaming business, Disney+, added fewer subscribers than expected in the quarter. Disney’s other businesses also underperformed expectations.

The information contained herein represents the views of Westwood Wealth Management at a specific point in time and is based on information believed to be reliable. No representation or warranty is made concerning the accuracy or completeness of any data compiled herein. Any statements non-factual in nature constitute only current opinion, which is subject to change. Any statements concerning financial market trends are based on current market conditions, which will fluctuate. Past performance is not indicative of future results. All information provided herein is for informational purposes only and is not intended to be, and should not be interpreted as, an offer, solicitation, or recommendation to buy or sell or otherwise invest in any of the securities/sectors/countries that may be mentioned.