WEEKLY MARKET UPDATE 7/5/2024

Stocks were mostly higher on the week with the S&P 500 and the Nasdaq both reaching fresh record closing highs.  Friday’s employment report for June showed stronger jobs growth than expected, but four of the past five jobs reports have now been revised lower with April and May most recently being downgraded by a total of 111K payrolls.  Markets are now forecasting a roughly 75% likelihood that the Federal Reserve cuts rates in September.  Next week will be the unofficial start to the second quarter earnings season with several of the big banks reporting.

RECORD TRAVEL

While the labor market appears to be slowing down, interest in travel is still booming.  Per AAA, a record 70.9 million travelers are expected to head 50 or more miles during the nine-day Independence Day holiday ranging from June 29th through July7th.  A record 60.6 million will travel by vehicle, but a record 5.11 million are expected to fly while TSA checkpoint numbers continue to be at all-time highs (see chart below).  Whether Americans can continue to travel at record levels if the labor market softens remains to be seen, but so far so good.

Ian G. Browning, CFA
Managing Director, Investment Strategies | Shareholder

From everyone on our Peddock Capital team, we hope you had a wonderful and safe Fourth of July!