Stocks Closed Generally Higher Last Week

Stocks closed generally higher for the week, with the Russell 2000, the Nasdaq and the Global Dow posting gains, while the large caps of the Dow and the S&P 500 declined. Ten-year Treasury yields rose as bond prices fell. Crude oil prices gained about $1.00 per barrel. The dollar and gold prices inched higher. Investors are most likely reassessing their positions following the presidential debate between Joe Biden and Donald Trump. The majority of the market sectors declined last week, with utilities and materials falling the most. Consumer discretionary, communication services and energy outperformed.

PCE Unchanged in May

Consumer prices were unchanged in May, according to the latest personal consumption expenditures (PCE) price index. Core prices (less food and energy) ticked up 0.1% last month. Year over year, both the PCE price index and the core PCE price index rose 2.6%, a reduction of 0.1% and 0.2%, respectively, from the same period ended in April. Consumer spending inched up 0.2% in May, while personal income rose 0.5%, largely attributable to a 0.7% rise in wages and salaries.

Eye on the Week Ahead

The jobs report for May is out this week. Employment picked up in April, with 272,000 estimated new jobs added. Strength in the labor sector supports the Federal Reserve’s restrictive monetary policy, particularly relative to interest rates.