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Researches By 3lal

Major stock market indexes moved higher yet again last week. Stable longer-term Treasury rates (at levels significantly below 5%) and more weak economic data (falling home sales, PMI job cuts) provided the major impetus for the move higher, bolstering expectations of sooner-than-previously expected rate cuts. Interestingly, the Nasdaq Composite Index fared the worst last week, affected more by earnings concerns (after Nvidia delayed chip design and production for the Chinese market) than rate outlooks. The Dow Jones Industrial Average performed the best last week despite concerns surrounding consumer spending, perhaps buoyed by less techstock exposure. For the week, the S&P 500 Index rose 1.0% to 4,559.34, the Nasdaq Composite Index increased 0.9% to 14,250.09 the Dow Jones Industrial Average gained 1.3% to 35,390.57, the 10-year U.S. Treasury rate increased 3bps to 4.47% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.5%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 24 Nov 2023

29 November, 2023 | GraniteShares
Major stock market indexes moved higher yet again last week. Stable longer-term Treasury rates (at levels significantly below 5%) and more weak economic data (falling home sales, PMI job cuts) provided the major impetus for the move higher, bolstering expectations of sooner-than-previously expected rate cuts. Interestingly, the Nasdaq Composite Index fared the worst last week, affected more by earnings concerns (after Nvidia delayed chip design and production for the Chinese market) than rate outlooks. The Dow Jones Industrial Average performed the best last week despite concerns surrounding consumer spending, perhaps buoyed by less techstock exposure. For the week, the S&P 500 Index rose 1.0% to 4,559.34, the Nasdaq Composite Index increased 0.9% to 14,250.09 the Dow Jones Industrial Average gained 1.3% to 35,390.57, the 10-year U.S. Treasury rate increased 3bps to 4.47% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.5%.

Another up week for major stock indexes with the Nasdaq Composite index strongly outperforming both the S&P 500 Index and the Dow Jones industrial Average. Interestingly, most of the week’s gains came Friday seemingly predicated on no real news. Longer-term Treasury rates were somewhat volatile last week, with falling rates mostly precipitating higher stock index levels and vice versa. Through Wednesday, 10-year Treasury rates fell 11bps, supported by existing expectations of “peak rates” (based on weakish economic data (in the U.S. and globally) and a better-than-expected 10-year Treasury auction. Rates reversed sharply Thursday after Fed Chair Powell’s comments that further rate increases may be necessary and following a worse-than-expected 30-year Treasury auction. Markets rallied sharply on Friday, moving all 3 major index levels higher on the week. For the week, the S&P 500 Index rose 1.3% to 4,415.24, the Nasdaq Composite Index gained 2.4% to 13,798.11 the Dow Jones Industrial Average increased 0.7% to 34,283.10, the 10-year U.S. Treasury rate rose 7bps to 4.65% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) appreciated 0.8%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 10 Nov 2023

14 November, 2023 | GraniteShares
Another up week for major stock indexes with the Nasdaq Composite index strongly outperforming both the S&P 500 Index and the Dow Jones industrial Average. Interestingly, most of the week’s gains came Friday seemingly predicated on no real news. Longer-term Treasury rates were somewhat volatile last week, with falling rates mostly precipitating higher stock index levels and vice versa. Through Wednesday, 10-year Treasury rates fell 11bps, supported by existing expectations of “peak rates” (based on weakish economic data (in the U.S. and globally) and a better-than-expected 10-year Treasury auction. Rates reversed sharply Thursday after Fed Chair Powell’s comments that further rate increases may be necessary and following a worse-than-expected 30-year Treasury auction. Markets rallied sharply on Friday, moving all 3 major index levels higher on the week. For the week, the S&P 500 Index rose 1.3% to 4,415.24, the Nasdaq Composite Index gained 2.4% to 13,798.11 the Dow Jones Industrial Average increased 0.7% to 34,283.10, the 10-year U.S. Treasury rate rose 7bps to 4.65% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) appreciated 0.8%.

Major stock indexes notched impressive gains last week with the Nasdaq Composite index rising nearly 7%, the S&P 500 gaining almost 6% and the Dow Jones Industrial average climbing 5%. The gains came partially on the back of better-than-expected corporate earnings but mostly from increased expectations the Fed was done hiking rates. The FOMC left rates unchanged, as expected, but subsequent comments from Fed Chair Powell suggesting higher long-term rates may alleviate the need for further rate increases lifted expectations of a Fed monetary policy pivot and set the stage for lower rates and significantly increased risk-on sentiment. Wednesday’s refunding announcement, with issuance more heavily weighted to short-term bills and notes than expected, helped move longer-term rates lower and, as a result, stock prices higher. Friday’s weaker-than-expected jobs report seemingly affirmed Fed-pivot expectations, again pushing rates lower and lifting – in its wake – stock prices. For the week, the S&P 500 Index rose 5.8% to 4,358.34, the Nasdaq Composite Index gained 5.5% to 13,478.28 the Dow Jones Industrial Average increased 5.1% to 34,061.32, the 10-year U.S. Treasury rate fell 26bps to 4.58% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 1.4%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 03 Nov 2023

07 November, 2023 | GraniteShares
Major stock indexes notched impressive gains last week with the Nasdaq Composite index rising nearly 7%, the S&P 500 gaining almost 6% and the Dow Jones Industrial average climbing 5%. The gains came partially on the back of better-than-expected corporate earnings but mostly from increased expectations the Fed was done hiking rates. The FOMC left rates unchanged, as expected, but subsequent comments from Fed Chair Powell suggesting higher long-term rates may alleviate the need for further rate increases lifted expectations of a Fed monetary policy pivot and set the stage for lower rates and significantly increased risk-on sentiment. Wednesday’s refunding announcement, with issuance more heavily weighted to short-term bills and notes than expected, helped move longer-term rates lower and, as a result, stock prices higher. Friday’s weaker-than-expected jobs report seemingly affirmed Fed-pivot expectations, again pushing rates lower and lifting – in its wake – stock prices. For the week, the S&P 500 Index rose 5.8% to 4,358.34, the Nasdaq Composite Index gained 5.5% to 13,478.28 the Dow Jones Industrial Average increased 5.1% to 34,061.32, the 10-year U.S. Treasury rate fell 26bps to 4.58% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 1.4%.

Stock markets moved lower again last week affected by rising interest rates, a slew of disappointing earnings results and, in a world where good news is bad news, stronger-than-expected GDP growth and consumer spending. Higher-rates-for-longer concerns surfaced early in the week, driving 10-year Treasury rates to the 5% level and while rates moved lower over the course of the week, the concerns remained embedded in market sentiment following a much stronger-than-expected GDP release, continued low initial jobless claims and a strong PMI Composite Index release. Alphabet’s disappointing cloud revenues/earnings (released Wednesday) added to downward market pressure, especially in the tech sector. Those losses were partially reversed Friday with Amazon earnings markedly exceeding analyst projections. Geopolitical concerns, centered in the Mid East, powered haven buying, lifting gold, Treasury rates and the U.S. dollar higher while increasing risk-off sentiment. For the week, the S&P 500 Index fell 2.6% to 4,113.05, the Nasdaq Composite Index dropped 2.9% to 12,611.58 the Dow Jones Industrial Average decreased 0.9% to 32,418.05, the 10-year U.S. Treasury rate fell 7bps to 4.84% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.4%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 27 Oct 2023

31 October, 2023 | GraniteShares
Stock markets moved lower again last week affected by rising interest rates, a slew of disappointing earnings results and, in a world where good news is bad news, stronger-than-expected GDP growth and consumer spending. Higher-rates-for-longer concerns surfaced early in the week, driving 10-year Treasury rates to the 5% level and while rates moved lower over the course of the week, the concerns remained embedded in market sentiment following a much stronger-than-expected GDP release, continued low initial jobless claims and a strong PMI Composite Index release. Alphabet’s disappointing cloud revenues/earnings (released Wednesday) added to downward market pressure, especially in the tech sector. Those losses were partially reversed Friday with Amazon earnings markedly exceeding analyst projections. Geopolitical concerns, centered in the Mid East, powered haven buying, lifting gold, Treasury rates and the U.S. dollar higher while increasing risk-off sentiment. For the week, the S&P 500 Index fell 2.6% to 4,113.05, the Nasdaq Composite Index dropped 2.9% to 12,611.58 the Dow Jones Industrial Average decreased 0.9% to 32,418.05, the 10-year U.S. Treasury rate fell 7bps to 4.84% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.4%.

Major stock indexes moved markedly lower last week, giving up sharp gains registered on Monday. Investor sentiment started the week re-invigored with lessened concerns surrounding Mid-East tensions and on perceived dovish comments from Fed officials. That sentiment began to shift Tuesday, however, after a much stronger-thanexpected retail sales report re-instilled Fed monetary policy angst, pushing 10-year Treasury rates almost 15bps higher and leaving stock indexes mainly unchanged. Renewed Mid-East concerns, U.S. imposed restrictions on AI chip sales to China and ever-increasing 10-year Treasury rates pushed stock markets lower Wednesday through Friday. Thursday’s Jerome Powell speech added to downward pressures with Chairman Powell saying he didn’t believe monetary policy was overly tight and that rates may need to stay high for a while. Thursday also saw an extremely weak existing home sales report with seemingly no real effect on Treasury rates or stock markets. Friday saw stock indexes drop 1% or more and saw 10-year Treasury rates move off of Thursday’s near 5% high both on no new news, For the week, the S&P 500 Index fell 2.4% to 4,224.16, the Nasdaq Composite Index dropped 3.2% to 12,983.81 the Dow Jones Industrial Average decreased 0.9% to 33,127.21, the 10-year U.S. Treasury rate rose 29bps to 4.81% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.5%

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 20 Oct 2023

24 October, 2023 | GraniteShares
Major stock indexes moved markedly lower last week, giving up sharp gains registered on Monday. Investor sentiment started the week re-invigored with lessened concerns surrounding Mid-East tensions and on perceived dovish comments from Fed officials. That sentiment began to shift Tuesday, however, after a much stronger-thanexpected retail sales report re-instilled Fed monetary policy angst, pushing 10-year Treasury rates almost 15bps higher and leaving stock indexes mainly unchanged. Renewed Mid-East concerns, U.S. imposed restrictions on AI chip sales to China and ever-increasing 10-year Treasury rates pushed stock markets lower Wednesday through Friday. Thursday’s Jerome Powell speech added to downward pressures with Chairman Powell saying he didn’t believe monetary policy was overly tight and that rates may need to stay high for a while. Thursday also saw an extremely weak existing home sales report with seemingly no real effect on Treasury rates or stock markets. Friday saw stock indexes drop 1% or more and saw 10-year Treasury rates move off of Thursday’s near 5% high both on no new news, For the week, the S&P 500 Index fell 2.4% to 4,224.16, the Nasdaq Composite Index dropped 3.2% to 12,983.81 the Dow Jones Industrial Average decreased 0.9% to 33,127.21, the 10-year U.S. Treasury rate rose 29bps to 4.81% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.5%

Stock prices moved noticeably higher early last week with all 3 major stock indexes gaining north of 1%. The increase came on the back of dovish comments from Fed officials, opining higher longer-term rates would likely make unnecessary additional rate increases. 10-year Treasury rates, reacting to these comments, fell over 25bps through Wednesday. A slightly better-than-expected PPI release (Wednesday), increasing hopes of cooling inflation added to the upward momentum. Sentiment changed, however, following a lukewarm CPI release Thursday, re-igniting higher-rates-for-longer concerns, pushing the 10-year Treasury rate almost 15bps higher and pressuring stock prices lower. That pressure continued through Friday with risk-off sentiment dominating markets on growing concerns surrounding Israel’s counteroffensive against Hamas terror attacks. The Nasdaq Composite and S&P 500 Indexes moved markedly lower while haven asset prices moved sharply higher. For the week, the S&P 500 Index increased 0.4% to 4,327.28, the Nasdaq Composite Index fell 0.2% to 13,407.23, the Dow Jones Industrial Average rose 0.8% to 33,670.29 the 10-year U.S. Treasury rate fell 19bps to 4.62% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.6%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 13 Oct 2023

17 October, 2023 | GraniteShares
Stock prices moved noticeably higher early last week with all 3 major stock indexes gaining north of 1%. The increase came on the back of dovish comments from Fed officials, opining higher longer-term rates would likely make unnecessary additional rate increases. 10-year Treasury rates, reacting to these comments, fell over 25bps through Wednesday. A slightly better-than-expected PPI release (Wednesday), increasing hopes of cooling inflation added to the upward momentum. Sentiment changed, however, following a lukewarm CPI release Thursday, re-igniting higher-rates-for-longer concerns, pushing the 10-year Treasury rate almost 15bps higher and pressuring stock prices lower. That pressure continued through Friday with risk-off sentiment dominating markets on growing concerns surrounding Israel’s counteroffensive against Hamas terror attacks. The Nasdaq Composite and S&P 500 Indexes moved markedly lower while haven asset prices moved sharply higher. For the week, the S&P 500 Index increased 0.4% to 4,327.28, the Nasdaq Composite Index fell 0.2% to 13,407.23, the Dow Jones Industrial Average rose 0.8% to 33,670.29 the 10-year U.S. Treasury rate fell 19bps to 4.62% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.6%.

A somewhat mixed week for major stock indexes. The Nasdaq Composite Index performed the best, gaining over 1.5%, followed by the S&P 500 Index, up ½ percent and trailed by the Dow Jones Industrial Average, down about 1/3 percent. The dominant theme last week was sharply higher Treasury rates and there deleterious effect on economic growth, corporate profits and stock prices in general. Tuesday’s significantly stronger-than-expected JOLTS report was the main impetus for higher rates. 10-year Treasury rates rose 11bps Tuesday after rising a like amount Monday. Stock prices, reacting to higher rates, fell sharply Tuesday with all 3 major indexes recording losses greater than 1%. Sentiment, however, reversed Wednesday, with stock prices regaining a good portion of their losses after a much weaker-than-expected ADP payroll report. Markets waffled through Thursday in front of Friday’s payroll report and then, interestingly, noticeably rallied (and Treasury rates fell) despite a much stronger than-expected jobs report, possibly because wage growth as reported in the report continued to soften and came in below expectations as well. For the week, the S&P 500 Index increased 0.5% to 4,308.50, the Nasdaq Composite Index rose 1.6% to 13,431.34, the Dow Jones Industrial Average decreased 0.3% to 33,40758, the 10-year U.S. Treasury rate rose 23bps to 4.81% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.1%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 06 Oct 2023

10 October, 2023 | GraniteShares
A somewhat mixed week for major stock indexes. The Nasdaq Composite Index performed the best, gaining over 1.5%, followed by the S&P 500 Index, up ½ percent and trailed by the Dow Jones Industrial Average, down about 1/3 percent. The dominant theme last week was sharply higher Treasury rates and there deleterious effect on economic growth, corporate profits and stock prices in general. Tuesday’s significantly stronger-than-expected JOLTS report was the main impetus for higher rates. 10-year Treasury rates rose 11bps Tuesday after rising a like amount Monday. Stock prices, reacting to higher rates, fell sharply Tuesday with all 3 major indexes recording losses greater than 1%. Sentiment, however, reversed Wednesday, with stock prices regaining a good portion of their losses after a much weaker-than-expected ADP payroll report. Markets waffled through Thursday in front of Friday’s payroll report and then, interestingly, noticeably rallied (and Treasury rates fell) despite a much stronger than-expected jobs report, possibly because wage growth as reported in the report continued to soften and came in below expectations as well. For the week, the S&P 500 Index increased 0.5% to 4,308.50, the Nasdaq Composite Index rose 1.6% to 13,431.34, the Dow Jones Industrial Average decreased 0.3% to 33,40758, the 10-year U.S. Treasury rate rose 23bps to 4.81% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.1%.

Somewhat of a mixed week for the 3 major stock indexes. Higher-rates-for-longer concerns, motivated by resilient economic data (including durable goods orders, jobless claims and final Q2 GDP estimate), permeated throughout the week, increasing risk-off sentiment and increasing, paradoxically, recession concerns. Interestingly, however, the Nasdaq Composite Index nicely outperformed both the Dow Jones Industrial Average and the S&P 500 Index. The outperformance is even more striking given the FTC’s anti-trust lawsuit announced early last week against Amazon. Friday’s mostly better-than-expected PCE Price Index release favoured tech stocks, lending more support to the Nasdaq Composite Index as did the accompanying move lower (off their intraweek highs) for 10- year Treasury rates (no matter how slight) and the U.S. dollar. For the week, the S&P 500 Index fell 0.7% to 4,288.05, the Nasdaq Composite Index increased 0.1% to 13,219.32, the Dow Jones Industrial Average dropped 1.4% to 33,507.75, the 10-year U.S. Treasury rate rose 14bps to 4.58% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.6%

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 29 Sep 2023

04 October, 2023 | GraniteShares
Somewhat of a mixed week for the 3 major stock indexes. Higher-rates-for-longer concerns, motivated by resilient economic data (including durable goods orders, jobless claims and final Q2 GDP estimate), permeated throughout the week, increasing risk-off sentiment and increasing, paradoxically, recession concerns. Interestingly, however, the Nasdaq Composite Index nicely outperformed both the Dow Jones Industrial Average and the S&P 500 Index. The outperformance is even more striking given the FTC’s anti-trust lawsuit announced early last week against Amazon. Friday’s mostly better-than-expected PCE Price Index release favoured tech stocks, lending more support to the Nasdaq Composite Index as did the accompanying move lower (off their intraweek highs) for 10- year Treasury rates (no matter how slight) and the U.S. dollar. For the week, the S&P 500 Index fell 0.7% to 4,288.05, the Nasdaq Composite Index increased 0.1% to 13,219.32, the Dow Jones Industrial Average dropped 1.4% to 33,507.75, the 10-year U.S. Treasury rate rose 14bps to 4.58% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.6%

A down week for U.S. stock markets, pressured by higher rates and a resilient economy. Markets were subdued prior to Wednesday’s FOMC announcement, moving slightly lower on uncertainty surrounding the Fed’s projections and monetary “tone”. Wednesday’s as-expected announcement of no change to the Fed funds target rate was accompanied, however, by hawkish overtones including prospects for another rate hike before year-end and the signalling that rates could very well remain higher for longer than previously expected, adding to downward price pressures. Thursday’s lower-than-expected initial jobless claims seemed to topple the giant, pushing the 3 major stock indexes down over 1% and sending the 10-year Treasury rate to 16-year highs. Markets ended the week on downbeat with risk-off sentiment setting the tone. For the week, the S&P 500 Index fell 2.9% to 4,320.06, the Nasdaq Composite Index dropped 3.6% to 13,211.81, the Dow Jones Industrial Average decreased 1.9% to 33,964.44, the 10-year U.S. Treasury rate rose 11bps to 4.44% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.2%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 22 Sep 2023

26 September, 2023 | GraniteShares
A down week for U.S. stock markets, pressured by higher rates and a resilient economy. Markets were subdued prior to Wednesday’s FOMC announcement, moving slightly lower on uncertainty surrounding the Fed’s projections and monetary “tone”. Wednesday’s as-expected announcement of no change to the Fed funds target rate was accompanied, however, by hawkish overtones including prospects for another rate hike before year-end and the signalling that rates could very well remain higher for longer than previously expected, adding to downward price pressures. Thursday’s lower-than-expected initial jobless claims seemed to topple the giant, pushing the 3 major stock indexes down over 1% and sending the 10-year Treasury rate to 16-year highs. Markets ended the week on downbeat with risk-off sentiment setting the tone. For the week, the S&P 500 Index fell 2.9% to 4,320.06, the Nasdaq Composite Index dropped 3.6% to 13,211.81, the Dow Jones Industrial Average decreased 1.9% to 33,964.44, the 10-year U.S. Treasury rate rose 11bps to 4.44% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.2%.

Stock markets started last week on a positive note, climbing on reports of Tesla’s supercomputer development to power its driverless-system capabilities. Markets retreated slightly Tuesday following Oracle’s downbeat guidance/forecast but continued higher Wednesday and Thursday after a mainly-as-expected CPI release Wednesday, powered by hopes of a resilient economy despite continued vigilance from the Fed. Friday, however, saw that optimism fade, triggered by a disappointing Adobe earnings report, a sustained rally in oil prices and a surprise decline in consumer sentiment. All 3 major stock market indexes, up 1% through Thursday, experienced sharp declines, driving both the S&P 500 and Nasdaq Composite Indexes slightly into the red and Dow Jones Industrial Average to almost unchanged. For the week, the S&P 500 Index decreased 0.2% to 4,450.32, the Nasdaq Composite Index dropped 0.4% to 13,704.70, the Dow Jones Industrial Average increased 0.1% to 34,618.77, the 10-year U.S. Treasury rate rose 7bps to 4.33% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.2%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 15 Sep 2023

20 September, 2023 | GraniteShares
Stock markets started last week on a positive note, climbing on reports of Tesla’s supercomputer development to power its driverless-system capabilities. Markets retreated slightly Tuesday following Oracle’s downbeat guidance/forecast but continued higher Wednesday and Thursday after a mainly-as-expected CPI release Wednesday, powered by hopes of a resilient economy despite continued vigilance from the Fed. Friday, however, saw that optimism fade, triggered by a disappointing Adobe earnings report, a sustained rally in oil prices and a surprise decline in consumer sentiment. All 3 major stock market indexes, up 1% through Thursday, experienced sharp declines, driving both the S&P 500 and Nasdaq Composite Indexes slightly into the red and Dow Jones Industrial Average to almost unchanged. For the week, the S&P 500 Index decreased 0.2% to 4,450.32, the Nasdaq Composite Index dropped 0.4% to 13,704.70, the Dow Jones Industrial Average increased 0.1% to 34,618.77, the 10-year U.S. Treasury rate rose 7bps to 4.33% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.2%.

Stock markets moved lower last week with the Nasdaq Composite Index registering the steepest decline versus the S&P 500 Index and the Dow Jones Industrial Average. Concerns of “higher-rates-for-longer” clouded investor outlooks, propelled by lower-than-expected initial jobless claims and a stronger-than-expected ISM Services Index release. Higher oil prices in front of next week’s CPI release added to concerns, increasing expectations of higherthan-desired inflation. Reflecting these concerns, the dollar continued to strengthen and 10-year Treasury rates rose powered by a rise in 10-year inflation expectations. For the week, the S&P 500 Index decreased 1.3% to 4,458.85, the Nasdaq Composite Index dropped 1.9% to 13,761.53, the Dow Jones Industrial Average fell 0.8% to 34,577.28, the 10-year U.S. Treasury rate increased 8bps to 4.26% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.8%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 08 Sep 2023

11 September, 2023 | GraniteShares
Stock markets moved lower last week with the Nasdaq Composite Index registering the steepest decline versus the S&P 500 Index and the Dow Jones Industrial Average. Concerns of “higher-rates-for-longer” clouded investor outlooks, propelled by lower-than-expected initial jobless claims and a stronger-than-expected ISM Services Index release. Higher oil prices in front of next week’s CPI release added to concerns, increasing expectations of higherthan-desired inflation. Reflecting these concerns, the dollar continued to strengthen and 10-year Treasury rates rose powered by a rise in 10-year inflation expectations. For the week, the S&P 500 Index decreased 1.3% to 4,458.85, the Nasdaq Composite Index dropped 1.9% to 13,761.53, the Dow Jones Industrial Average fell 0.8% to 34,577.28, the 10-year U.S. Treasury rate increased 8bps to 4.26% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.8%.

All 3 major indexes moved higher last week, powered mainly by investor reassessment of the strength of the economy and, as a result, of a possible relaxing of the Fed’s current monetary policy. Weaker-than-expected JOLTS and consumer confidence releases early last week seemingly accentuated Fed Chair Powell’s “proceed with caution” Jackson Hole comments, increasing expectations of a less aggressive Fed, pushing Treasury rates lower and stock prices higher. More (but less) of the same followed with an unexpected revision lower to Q2 GDP. Thursday’s PCE Price Index release, while generally reflecting a slowing in core and headline inflation, also showed continued higher-than-desired (by the Fed) wage and services inflation, increasing (at least momentarily) uncertainty regarding the Fed’s future course of action. Friday’s weaker-than-expected Jobs Report, also seemingly increased uncertainty with lower-than-expected jobs created offset by slightly higher-than-expected wage growth. 10-year Treasury rates, down 13bps through Thursday, rose 8bps Friday (following the Jobs Report), finishing the week 5bps lower. The move lower was entirely due to falling 10-year inflation expectations. For the week, the S&P 500 Index increased 2.5% to 4,515.77, the Nasdaq Composite Index climbed 3.3% to 14,031.82, the Dow Jones Industrial Average rose 1.4% to 34,838.01, the 10-year U.S. Treasury rate decreased 5bps to 4.18% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.2%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 01 Sep 2023

05 September, 2023 | GraniteShares
All 3 major indexes moved higher last week, powered mainly by investor reassessment of the strength of the economy and, as a result, of a possible relaxing of the Fed’s current monetary policy. Weaker-than-expected JOLTS and consumer confidence releases early last week seemingly accentuated Fed Chair Powell’s “proceed with caution” Jackson Hole comments, increasing expectations of a less aggressive Fed, pushing Treasury rates lower and stock prices higher. More (but less) of the same followed with an unexpected revision lower to Q2 GDP. Thursday’s PCE Price Index release, while generally reflecting a slowing in core and headline inflation, also showed continued higher-than-desired (by the Fed) wage and services inflation, increasing (at least momentarily) uncertainty regarding the Fed’s future course of action. Friday’s weaker-than-expected Jobs Report, also seemingly increased uncertainty with lower-than-expected jobs created offset by slightly higher-than-expected wage growth. 10-year Treasury rates, down 13bps through Thursday, rose 8bps Friday (following the Jobs Report), finishing the week 5bps lower. The move lower was entirely due to falling 10-year inflation expectations. For the week, the S&P 500 Index increased 2.5% to 4,515.77, the Nasdaq Composite Index climbed 3.3% to 14,031.82, the Dow Jones Industrial Average rose 1.4% to 34,838.01, the 10-year U.S. Treasury rate decreased 5bps to 4.18% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.2%.

Stock markets rose last week, with the 2 of the 3 major market indexes registering gains with somewhat large disparity between index returns. Uncertainty ruled early week trading with investor awaiting Nvidia’s earnings report Wednesday (after the close) and Fed Chair Powell’s Jackson Hole speech Friday. Macy’s poor earnings report Tuesday, adding to concerns regarding consumer strength, helped pressure markets lower. Wednesday’s much better-than-expected Toll Brothers’ results (indicating surprisingly strong home building strength despite the high level of mortgage rates) along with generally positive Nvidia expectations pushed all 3 index levels at least ½ percent higher. Though Nvidia’s earnings report beat expectations (sending the stock almost 10% higher after hours Wednesday), markets fell more than 1% Thursday (Nvidia ended the day practically unchanged), besieged by growing concerns of the wherewithal of the economy follow much weaker-than-expected durable goods orders. Lower-than-expected jobless claims, indicating a still-resilient job market, added to those concerns by increasing expectations of continued Fed tight monetary policies. Powell’s comments Friday overall appeared to buoy markets, leaving investors with expectations the Fed would remain vigilant in its fight against inflation but act with caution. 10-year Treasury rates, reflecting investor uncertainty early last week, rose noticeably Tuesday only to fall sharply Wednesday to end the week about 2bps lower. For the week, the S&P 500 Index increased 0.8% to 4,405.71, the Nasdaq Composite Index climbed 2.3% to 13,590.65, the Dow Jones Industrial Average decreased 0.5% to 34,346.96, the 10-year U.S. Treasury rate decreased 2bps to 4.23% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.8%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 25 Aug 2023

31 August, 2023 | GraniteShares
Stock markets rose last week, with the 2 of the 3 major market indexes registering gains with somewhat large disparity between index returns. Uncertainty ruled early week trading with investor awaiting Nvidia’s earnings report Wednesday (after the close) and Fed Chair Powell’s Jackson Hole speech Friday. Macy’s poor earnings report Tuesday, adding to concerns regarding consumer strength, helped pressure markets lower. Wednesday’s much better-than-expected Toll Brothers’ results (indicating surprisingly strong home building strength despite the high level of mortgage rates) along with generally positive Nvidia expectations pushed all 3 index levels at least ½ percent higher. Though Nvidia’s earnings report beat expectations (sending the stock almost 10% higher after hours Wednesday), markets fell more than 1% Thursday (Nvidia ended the day practically unchanged), besieged by growing concerns of the wherewithal of the economy follow much weaker-than-expected durable goods orders. Lower-than-expected jobless claims, indicating a still-resilient job market, added to those concerns by increasing expectations of continued Fed tight monetary policies. Powell’s comments Friday overall appeared to buoy markets, leaving investors with expectations the Fed would remain vigilant in its fight against inflation but act with caution. 10-year Treasury rates, reflecting investor uncertainty early last week, rose noticeably Tuesday only to fall sharply Wednesday to end the week about 2bps lower. For the week, the S&P 500 Index increased 0.8% to 4,405.71, the Nasdaq Composite Index climbed 2.3% to 13,590.65, the Dow Jones Industrial Average decreased 0.5% to 34,346.96, the 10-year U.S. Treasury rate decreased 2bps to 4.23% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.8%.

All 3 major stock market indexes moved noticeably lower last week pressured by growing “higher-rates-for-longer” concerns. Good economic data released last week, including better-than-expected retail sales and initial jobless claims, added to rate concerns pushing both nominal and real 10-year Treasury rates higher and, as a result, pressuring stock prices lower. Wednesday’s FOMC Minutes release also contributed to expectations of continued Fed vigilance, revealing most FOMC members continue to be worried about current and prospective inflation levels. The Atlanta Fed’s revision higher to its Q3 GDP growth forecast (also on Wednesday) added to higher-rate concerns as well. Reflecting higher-rate concerns, the 10-year Treasury rate rose 9bps with 10-year real rates rising 16bps and 10-year inflation expectations falling 7bps. For the week, the S&P 500 Index fell 2.1% to 4,369.71, the Nasdaq Composite Index dropped 2.6% to 13,290.78, the Dow Jones Industrial Average decreased 2.2% to 34,501.88, the 10-year U.S. Treasury rate increased 9bps to 4.25% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.6%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 18 Aug 2023

22 August, 2023 | GraniteShares
All 3 major stock market indexes moved noticeably lower last week pressured by growing “higher-rates-for-longer” concerns. Good economic data released last week, including better-than-expected retail sales and initial jobless claims, added to rate concerns pushing both nominal and real 10-year Treasury rates higher and, as a result, pressuring stock prices lower. Wednesday’s FOMC Minutes release also contributed to expectations of continued Fed vigilance, revealing most FOMC members continue to be worried about current and prospective inflation levels. The Atlanta Fed’s revision higher to its Q3 GDP growth forecast (also on Wednesday) added to higher-rate concerns as well. Reflecting higher-rate concerns, the 10-year Treasury rate rose 9bps with 10-year real rates rising 16bps and 10-year inflation expectations falling 7bps. For the week, the S&P 500 Index fell 2.1% to 4,369.71, the Nasdaq Composite Index dropped 2.6% to 13,290.78, the Dow Jones Industrial Average decreased 2.2% to 34,501.88, the 10-year U.S. Treasury rate increased 9bps to 4.25% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.6%.

Index performance diverged last week with the Nasdaq Composite noticeably underperforming the Dow Jones Industrial Average and the S&P 500 Index. The Dow Jones Industrial Average was the only index to end the week with a gain though the S&P 500 Index finished the week slightly lower, falling a bit more than ¼ percent. Downward pressure on stocks seemed to come from, 1) concerns the Fed will keep rates higher for longer, 2) a faltering Chinese economy and 3) renewed concerns surrounding regional bank health following Moody’s creditrating downgrade of 10 regional banks. Current interest rate levels may also be detracting from stock market performance with bonds providing a more attractive alternative investment. Thursday’s better-than-expected CPI release momentarily pushed markets higher, fueling hopes the Fed will be less aggressive going forward, but those hopes were diminished Friday following a higher-than-expected PPI release. For the week, the S&P 500 Index fell 0.3% to 4,464.05, the Nasdaq Composite Index dropped 1.9% to 13,644.85, the Dow Jones Industrial Average rose 0.6% to 35,281.47, the 10-year U.S. Treasury rate increased 12bps to 4.16% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.8%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 11 Aug 2023

14 August, 2023 | GraniteShares
Index performance diverged last week with the Nasdaq Composite noticeably underperforming the Dow Jones Industrial Average and the S&P 500 Index. The Dow Jones Industrial Average was the only index to end the week with a gain though the S&P 500 Index finished the week slightly lower, falling a bit more than ¼ percent. Downward pressure on stocks seemed to come from, 1) concerns the Fed will keep rates higher for longer, 2) a faltering Chinese economy and 3) renewed concerns surrounding regional bank health following Moody’s creditrating downgrade of 10 regional banks. Current interest rate levels may also be detracting from stock market performance with bonds providing a more attractive alternative investment. Thursday’s better-than-expected CPI release momentarily pushed markets higher, fueling hopes the Fed will be less aggressive going forward, but those hopes were diminished Friday following a higher-than-expected PPI release. For the week, the S&P 500 Index fell 0.3% to 4,464.05, the Nasdaq Composite Index dropped 1.9% to 13,644.85, the Dow Jones Industrial Average rose 0.6% to 35,281.47, the 10-year U.S. Treasury rate increased 12bps to 4.16% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.8%.

Stock markets moved lower last week with all 3 major indexes losing more than 1%. The Dow Jones Industrial Average noticeably outperformed the Nasdaq Composite and S&P 500 Indexes with the latter 2 indexes falling south of 2%. Rising Treasury yields appeared to be the primary culprit for last week’s losses, with investor interest seemingly tilting toward bond rather than stock investments (strong gains year to date also may be part of the dynamics). Treasury yields, up over 20bps through Thursday, moved markedly higher following the Treasuries much larger-than-expected funding announcement Wednesday. Fitch Ratings’ downgrade (Wednesday) of the U.S. credit rating (from AAA to AA+) may have been another factor contributing to higher Treasury yields and lower stock prices. Friday’s payroll report, showing a smaller-than-expected increase in payrolls but continued upward wage pressures, did little to reverse investor sentiment toward stocks but seemingly allayed “higher rates” expectations, moving the 10-year Treasury rate 14bps lower. For the week, the S&P 500 Index fell 2.3% to 4,478.03, the Nasdaq Composite Index dropped 2.9% to 13,909.24, the Dow Jones Industrial Average decreased 1.1% to 35,065.15, the 10-year U.S. Treasury rate increased 8bps to 4.04% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.4%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 04 Aug 2023

09 August, 2023 | GraniteShares
Stock markets moved lower last week with all 3 major indexes losing more than 1%. The Dow Jones Industrial Average noticeably outperformed the Nasdaq Composite and S&P 500 Indexes with the latter 2 indexes falling south of 2%. Rising Treasury yields appeared to be the primary culprit for last week’s losses, with investor interest seemingly tilting toward bond rather than stock investments (strong gains year to date also may be part of the dynamics). Treasury yields, up over 20bps through Thursday, moved markedly higher following the Treasuries much larger-than-expected funding announcement Wednesday. Fitch Ratings’ downgrade (Wednesday) of the U.S. credit rating (from AAA to AA+) may have been another factor contributing to higher Treasury yields and lower stock prices. Friday’s payroll report, showing a smaller-than-expected increase in payrolls but continued upward wage pressures, did little to reverse investor sentiment toward stocks but seemingly allayed “higher rates” expectations, moving the 10-year Treasury rate 14bps lower. For the week, the S&P 500 Index fell 2.3% to 4,478.03, the Nasdaq Composite Index dropped 2.9% to 13,909.24, the Dow Jones Industrial Average decreased 1.1% to 35,065.15, the 10-year U.S. Treasury rate increased 8bps to 4.04% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.4%.

Stock markets moved higher last week, this time with the Nasdaq Composite Index outperforming both the Dow Jones Industrial Average and the S&P 500 Index. Markets moved higher through mid-week in expectation of the Fed’s tightening operations reaching their zenith after one last 25bp increase. Those expectations were seemingly met Wednesday after an as-expected 25bp hike in the fed funds target range and after somewhat supportive comments by Fed Chair Powell opining that the after effects of heretofore tightening possibly have yet to be seen. Those expectations changed Thursday, however, following smaller-than-expected initial jobless claims and greaterthan-expected GDP growth, generating renewed concerns the Fed may find reason to tighten more (or keep rates higher longer), pushing all 3 indexes at least 1/2 percent lower and 10-year Treasury rates 13bps higher. Alas, Thursday’s concerns were lessened Friday with price and wage inflation data pointing to continued cooling. Both the headline and core PCE Price Index and the Employment Cost Index releases came in slightly better than expected, rejuvenating hopes of “peak rates” and a soon-to-be more benign Fed, powering stock markets markedly higher and partially reversing Thursday’s 10-year Treasury rate rise. For the week, the S&P 500 Index increased 1.0% to 4,582.23, the Nasdaq Composite Index rose 2.0% to 14,316.66, the Dow Jones Industrial Average gained 0.7% to close at 35,458.96, the 10-year U.S. Treasury rate increased 12bp to 3.96% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.6%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

The Long and Short of it, week ending 28 July 2023

31 July, 2023 | GraniteShares
Stock markets moved higher last week, this time with the Nasdaq Composite Index outperforming both the Dow Jones Industrial Average and the S&P 500 Index. Markets moved higher through mid-week in expectation of the Fed’s tightening operations reaching their zenith after one last 25bp increase. Those expectations were seemingly met Wednesday after an as-expected 25bp hike in the fed funds target range and after somewhat supportive comments by Fed Chair Powell opining that the after effects of heretofore tightening possibly have yet to be seen. Those expectations changed Thursday, however, following smaller-than-expected initial jobless claims and greaterthan-expected GDP growth, generating renewed concerns the Fed may find reason to tighten more (or keep rates higher longer), pushing all 3 indexes at least 1/2 percent lower and 10-year Treasury rates 13bps higher. Alas, Thursday’s concerns were lessened Friday with price and wage inflation data pointing to continued cooling. Both the headline and core PCE Price Index and the Employment Cost Index releases came in slightly better than expected, rejuvenating hopes of “peak rates” and a soon-to-be more benign Fed, powering stock markets markedly higher and partially reversing Thursday’s 10-year Treasury rate rise. For the week, the S&P 500 Index increased 1.0% to 4,582.23, the Nasdaq Composite Index rose 2.0% to 14,316.66, the Dow Jones Industrial Average gained 0.7% to close at 35,458.96, the 10-year U.S. Treasury rate increased 12bp to 3.96% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.6%.

Stock markets moved higher again last week though major indexes diverged with the Dow Jones Industrial Average markedly outperforming the Nasdaq Composite and S&P 500 Indexes. All 3 indexes moved sharply higher through Wednesday, rising on strong big-bank earnings reports (from the previous week as well) and on solid regional bank results showing deposits had stabilized. (In fact, through Wednesday, the Nasdaq Composite Index had slightly outperformed the other 2 indexes.) A weaker-than-expected June retail sales release Tuesday increased expectations of less aggressive Fed monetary policy also supporting stock prices. Following disappointing earnings reports from TSLA, NFLX and TSMC, tech stocks moved substantively lower with the Nasdaq Composite Index finishing the day down 2%. Interestingly, Thursday’s better/lower-than-expected initial jobless claims renewed “higher-rates-for-longer” concerns, pushing 10-year Treasury rates and the U.S. dollar higher while at the same time propelling the Dow Jones Industrial Average ½ percent higher. For the week, the S&P 500 Index increased 0.7% to 4,536.34, the Nasdaq Composite Index fell 0.6% to 14,032.80, the Dow Jones Industrial Average rose 2.1% to 35,228.48, the 10-year U.S. Treasury rate increased 1bp to 3.84% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 1.2%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 21 July 2023

25 July, 2023 | GraniteShares
Stock markets moved higher again last week though major indexes diverged with the Dow Jones Industrial Average markedly outperforming the Nasdaq Composite and S&P 500 Indexes. All 3 indexes moved sharply higher through Wednesday, rising on strong big-bank earnings reports (from the previous week as well) and on solid regional bank results showing deposits had stabilized. (In fact, through Wednesday, the Nasdaq Composite Index had slightly outperformed the other 2 indexes.) A weaker-than-expected June retail sales release Tuesday increased expectations of less aggressive Fed monetary policy also supporting stock prices. Following disappointing earnings reports from TSLA, NFLX and TSMC, tech stocks moved substantively lower with the Nasdaq Composite Index finishing the day down 2%. Interestingly, Thursday’s better/lower-than-expected initial jobless claims renewed “higher-rates-for-longer” concerns, pushing 10-year Treasury rates and the U.S. dollar higher while at the same time propelling the Dow Jones Industrial Average ½ percent higher. For the week, the S&P 500 Index increased 0.7% to 4,536.34, the Nasdaq Composite Index fell 0.6% to 14,032.80, the Dow Jones Industrial Average rose 2.1% to 35,228.48, the 10-year U.S. Treasury rate increased 1bp to 3.84% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 1.2%.

Stock markets moved higher last week, supported by strong economic data, decent bank earnings and falling inflation levels. All 3 major stock market indexes moved higher throughout the week, rising early in the week (before CPI and PPI releases) on continued indications of a resilient economy and, to some extent, positive earnings reports expectations. Wednesday’s CPI release showing both headline and core inflation slowed substantively added to market sentiment, boosting hopes of softer Fed monetary policy going forward and of a “soft landing”. Thursday’s better-than-expected PPI release added to this sentiment. Better-than-expected major bank earnings reports Friday were somewhat ameliorated by concerns regarding profits going forward and uncertainty regarding upcoming regional bank earnings reports. Unchanged (and very high) expectations of a Fed rate hike in this month combined with hawkish comments from some Fed officials (stating one data point does not define a trend) contributed to this uncertainty, perhaps capping market gains on the week. Nonetheless, both the U.S. dollar and 10-year Treasury rates reflected growing expectations of a Fed pivot sooner than later, with the U.S. dollar sharply weakening and the 10-year Treasury rate dropping double digits. For the week, the S&P 500 Index increased 2.4% to 4,505.42, the Nasdaq Composite Index gained 3.3% to 14,113.70, the Dow Jones Industrial Average rose 2.3% to 34,510.22, the 10-year U.S. Treasury rate fell 24bps to 3.83% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 2.3%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 14 July 2023

21 July, 2023 | GraniteShares
Stock markets moved higher last week, supported by strong economic data, decent bank earnings and falling inflation levels. All 3 major stock market indexes moved higher throughout the week, rising early in the week (before CPI and PPI releases) on continued indications of a resilient economy and, to some extent, positive earnings reports expectations. Wednesday’s CPI release showing both headline and core inflation slowed substantively added to market sentiment, boosting hopes of softer Fed monetary policy going forward and of a “soft landing”. Thursday’s better-than-expected PPI release added to this sentiment. Better-than-expected major bank earnings reports Friday were somewhat ameliorated by concerns regarding profits going forward and uncertainty regarding upcoming regional bank earnings reports. Unchanged (and very high) expectations of a Fed rate hike in this month combined with hawkish comments from some Fed officials (stating one data point does not define a trend) contributed to this uncertainty, perhaps capping market gains on the week. Nonetheless, both the U.S. dollar and 10-year Treasury rates reflected growing expectations of a Fed pivot sooner than later, with the U.S. dollar sharply weakening and the 10-year Treasury rate dropping double digits. For the week, the S&P 500 Index increased 2.4% to 4,505.42, the Nasdaq Composite Index gained 3.3% to 14,113.70, the Dow Jones Industrial Average rose 2.3% to 34,510.22, the 10-year U.S. Treasury rate fell 24bps to 3.83% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 2.3%.

All 3 major stock indexes fell last week with the Dow Jones Industrial Average falling the most, followed by the S&P 500 Index and then by the NASDAQ Composite Index. Surprisingly, – given the over 20bps increase in the 10-year Treasury rate - the NASDAQ Composite Index outperformed the other two. The July 4th holiday-shortened week saw markets increase only Monday, moving higher on much better-than-expected TSLA sales and Rivian deliveries and on a weaker-than-expected ISM Mfg Index release. Markets moved lower the remainder of the week, reacting to a myriad of factors including hawkish FOMC minutes (released Wednesday), a stronger-than-expected ISM Services Index Thursday and a jobs report (released Friday) showing continued significant upward wage pressures and a drop in the unemployment rate (both negating a smaller-than-expected increase in payrolls) All of these factors increased market expectations of additional Fed rate hikes and, at the same time, lowered expectations of a Fed pivot in the near future. Reflecting these expectations, the 10-year Treasury rate rose 23bps with 21bps of that increase coming from higher 10-year real rates. Interestingly, the U.S. dollar weakened over the week, likely reflecting expectations of even tighter BoE and ECB monetary policy. For the week, the S&P 500 Index decreased 1.1% to 4,399.63, the Nasdaq Composite Index fell 0.9% to 13,660.72, the Dow Jones Industrial Average dropped 2.0% to 33,705.01, the 10-year U.S. Treasury rate increased 23bps to 4.07% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.6%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 07 July 2023

11 July, 2023 | GraniteShares
All 3 major stock indexes fell last week with the Dow Jones Industrial Average falling the most, followed by the S&P 500 Index and then by the NASDAQ Composite Index. Surprisingly, – given the over 20bps increase in the 10-year Treasury rate - the NASDAQ Composite Index outperformed the other two. The July 4th holiday-shortened week saw markets increase only Monday, moving higher on much better-than-expected TSLA sales and Rivian deliveries and on a weaker-than-expected ISM Mfg Index release. Markets moved lower the remainder of the week, reacting to a myriad of factors including hawkish FOMC minutes (released Wednesday), a stronger-than-expected ISM Services Index Thursday and a jobs report (released Friday) showing continued significant upward wage pressures and a drop in the unemployment rate (both negating a smaller-than-expected increase in payrolls) All of these factors increased market expectations of additional Fed rate hikes and, at the same time, lowered expectations of a Fed pivot in the near future. Reflecting these expectations, the 10-year Treasury rate rose 23bps with 21bps of that increase coming from higher 10-year real rates. Interestingly, the U.S. dollar weakened over the week, likely reflecting expectations of even tighter BoE and ECB monetary policy. For the week, the S&P 500 Index decreased 1.1% to 4,399.63, the Nasdaq Composite Index fell 0.9% to 13,660.72, the Dow Jones Industrial Average dropped 2.0% to 33,705.01, the 10-year U.S. Treasury rate increased 23bps to 4.07% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.6%.

Stock markets registered gains last week with all 3 major indexes rising 2% or more. The gains occurred even as Fed Chairman Jerome Powell continued to voice hawkish views regarding the Fed’s fight against inflation in the face of strong economic data. Fed fund futures are now pricing a near certain rate increase in July’s FOMC meeting though with sharply diminishing probability of a rate increase priced into the September meeting. Expectations of a recession or even markedly slower growth faded progressively last week, despite the overhang of tight monetary policy, with data showing falling inflation (a lower-than-expected PCE Price Index release) accompanied by resilient job and housing markets, expanding GDP and robust consumer confidence. 10-year Treasury rates rose last week with the increase coming almost entirely from rising real rates reflecting, it seems, the Fed’s inclination to maintain higher rates while inflation falls and the economy hums along. For the week, the S&P 500 Index rose 2.4% to 4,450.38, the Nasdaq Composite Index increased 2.2% to 13,787.92, the Dow Jones Industrial Average added 2.0% to finish at 34,405.99, the 10-year U.S. Treasury rate increased 10bps to 3.84% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) was unchanged.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 30 June 2023

04 July, 2023 | GraniteShares
Stock markets registered gains last week with all 3 major indexes rising 2% or more. The gains occurred even as Fed Chairman Jerome Powell continued to voice hawkish views regarding the Fed’s fight against inflation in the face of strong economic data. Fed fund futures are now pricing a near certain rate increase in July’s FOMC meeting though with sharply diminishing probability of a rate increase priced into the September meeting. Expectations of a recession or even markedly slower growth faded progressively last week, despite the overhang of tight monetary policy, with data showing falling inflation (a lower-than-expected PCE Price Index release) accompanied by resilient job and housing markets, expanding GDP and robust consumer confidence. 10-year Treasury rates rose last week with the increase coming almost entirely from rising real rates reflecting, it seems, the Fed’s inclination to maintain higher rates while inflation falls and the economy hums along. For the week, the S&P 500 Index rose 2.4% to 4,450.38, the Nasdaq Composite Index increased 2.2% to 13,787.92, the Dow Jones Industrial Average added 2.0% to finish at 34,405.99, the 10-year U.S. Treasury rate increased 10bps to 3.84% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) was unchanged.

Artificial intelligence (AI), or the use of machines to replicate and replace human intelligence processes in a wide range of situations and industries, is gaining a lot of attention due to its growing importance in our daily lives and economy. From self-driving cars to surgery-performing AI robots AI has gradually become a part of our lives. Investors are attempting to determine the best ways to capitalise on this critical growth industry as AI's capabilities continue to expand.

Topic: Industrials , Technology , FAANG , GAFAM , FATANG

Publication Type: ETP and Industry , Single stock research

Investing in AI Companies in 2023

29 June, 2023 | GraniteShares
Artificial intelligence (AI), or the use of machines to replicate and replace human intelligence processes in a wide range of situations and industries, is gaining a lot of attention due to its growing importance in our daily lives and economy. From self-driving cars to surgery-performing AI robots AI has gradually become a part of our lives. Investors are attempting to determine the best ways to capitalise on this critical growth industry as AI's capabilities continue to expand.

A holiday-shortened trading week with all 3 major stock market indexes relinquishing a portion of previous week’s gains, each falling about 1.5%. Fed Chair Powell’s testimony before Congress (Wednesday and Thursday) concretizing the Fed’s ongoing fight against inflation (with Powell saying there’s a long way to go) as well as introducing additional banking system stress due to poor performing commercial real estate assets was the primary reason for last week’s decline. The prospect of higher rates and reduced expectations of an imminent rate cut in the face of weaker-than-expected manufacturing and services activity and continued relatively high jobless claims, also added downward pressure on index levels. While 10-year Treasury rates were slightly lower, the U.S. dollar reversed some of last week’s weakening, strength just over ½ percent, reflecting renewed higher-rate sentiment. For the week, the S&P 500 Index decreased 1.4% to 4348.33, the Nasdaq Composite Index declined 1.4% to 13,492.52, the Dow Jones Industrial Average fell 1.7% to 33,728.69, the 10-year U.S. Treasury rate decreased 3bps to 3.74% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.6%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 23 June 2023

27 June, 2023 | GraniteShares
A holiday-shortened trading week with all 3 major stock market indexes relinquishing a portion of previous week’s gains, each falling about 1.5%. Fed Chair Powell’s testimony before Congress (Wednesday and Thursday) concretizing the Fed’s ongoing fight against inflation (with Powell saying there’s a long way to go) as well as introducing additional banking system stress due to poor performing commercial real estate assets was the primary reason for last week’s decline. The prospect of higher rates and reduced expectations of an imminent rate cut in the face of weaker-than-expected manufacturing and services activity and continued relatively high jobless claims, also added downward pressure on index levels. While 10-year Treasury rates were slightly lower, the U.S. dollar reversed some of last week’s weakening, strength just over ½ percent, reflecting renewed higher-rate sentiment. For the week, the S&P 500 Index decreased 1.4% to 4348.33, the Nasdaq Composite Index declined 1.4% to 13,492.52, the Dow Jones Industrial Average fell 1.7% to 33,728.69, the 10-year U.S. Treasury rate decreased 3bps to 3.74% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.6%.

Stock markets charged higher last week with all 3 major stock indexes moving higher every day last week but Friday. Falling inflation levels as revealed by both CPI and PPI releases last week helped propel stock prices higher last week despite hawkish comments from Fed Chairman Powell increasing expectations of at least 2 more rate hikes. Market sentiment, nonetheless, seemingly dismissed concerns surrounding those expectations focusing on overall declining inflation, relatively strong economic data (i.e., better-than-expected retail sales, sharply higher consumer sentiment and robust second quarter GDP growth forecasts) and, perhaps, the Fed’s concerns regarding regional banks. The U.S. dollar, too, moved past higher-rate concerns, weakening over 1% during the week while 10-year U.S. Treasury rates were basically unchanged. For the week, the S&P 500 Index increased 2.6% to 4,409.59, the Nasdaq Composite Index rose 3.3% to 13,689.57, the Dow Jones Industrial Average increased 1.3% to 34,300.76, the 10-year U.S. Treasury rate increased 3bps to 3.77% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 1.3%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 16 June 2023

20 June, 2023 | GraniteShares
Stock markets charged higher last week with all 3 major stock indexes moving higher every day last week but Friday. Falling inflation levels as revealed by both CPI and PPI releases last week helped propel stock prices higher last week despite hawkish comments from Fed Chairman Powell increasing expectations of at least 2 more rate hikes. Market sentiment, nonetheless, seemingly dismissed concerns surrounding those expectations focusing on overall declining inflation, relatively strong economic data (i.e., better-than-expected retail sales, sharply higher consumer sentiment and robust second quarter GDP growth forecasts) and, perhaps, the Fed’s concerns regarding regional banks. The U.S. dollar, too, moved past higher-rate concerns, weakening over 1% during the week while 10-year U.S. Treasury rates were basically unchanged. For the week, the S&P 500 Index increased 2.6% to 4,409.59, the Nasdaq Composite Index rose 3.3% to 13,689.57, the Dow Jones Industrial Average increased 1.3% to 34,300.76, the 10-year U.S. Treasury rate increased 3bps to 3.77% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 1.3%.

As measured by the 3 major indexes, stock markets moved slightly higher last week with markets cautious before this week’s FOMC meeting and CPI release. Slightly weaker-than-expected economic data - including a weakerthan-expected ISM Services Index release and greater-than-expected initial jobless claims – helped increase expectations of a Fed pause while also diminishing concerns of a full-blown recession. Markets moved lower Wednesday with investor expectations of another Fed rate hike temporarily increasing following an unexpected rate increase by the Bank of Canada. Despite strong price performance by TSLA and NVDA last week, the Nasdaq Composite Index slightly underperformed both the Dow Jones industrial Average and the S&P 500 Index. (Small cap stocks, as measured by the Russell 2000 Index, strongly outperformed the 3 major indexes, increasing just under 2% on the week.) The change in 10-year Treasury yields moved slightly higher last week also seemingly waiting for this week’s CPI release and FOMC announcement. For the week, the S&P 500 Index increased 0.4% to 4,298.86, the Nasdaq Composite Index edged slightly higher, increasing 0.1% to 13,259.14, the Dow Jones Industrial Average rose 0.3% to 33,877.24, the 10-year U.S. Treasury rate increased 4bps to 3.74% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.4%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 09 June 2023

13 June, 2023 | GraniteShares
As measured by the 3 major indexes, stock markets moved slightly higher last week with markets cautious before this week’s FOMC meeting and CPI release. Slightly weaker-than-expected economic data - including a weakerthan-expected ISM Services Index release and greater-than-expected initial jobless claims – helped increase expectations of a Fed pause while also diminishing concerns of a full-blown recession. Markets moved lower Wednesday with investor expectations of another Fed rate hike temporarily increasing following an unexpected rate increase by the Bank of Canada. Despite strong price performance by TSLA and NVDA last week, the Nasdaq Composite Index slightly underperformed both the Dow Jones industrial Average and the S&P 500 Index. (Small cap stocks, as measured by the Russell 2000 Index, strongly outperformed the 3 major indexes, increasing just under 2% on the week.) The change in 10-year Treasury yields moved slightly higher last week also seemingly waiting for this week’s CPI release and FOMC announcement. For the week, the S&P 500 Index increased 0.4% to 4,298.86, the Nasdaq Composite Index edged slightly higher, increasing 0.1% to 13,259.14, the Dow Jones Industrial Average rose 0.3% to 33,877.24, the 10-year U.S. Treasury rate increased 4bps to 3.74% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.4%.

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Topic: Financials

Publication Type: Investment Cases , ETP and Industry

GraniteShares 3x Long ETPs Deliver Impressive Year-to-Date Gains

08 June, 2023 | GraniteShares
GraniteShares, a leading provider of leveraged exchange-traded products (ETPs), has been making waves in the market with its innovative offerings. Among their standout performers are the GraniteShares 3x Long ETPs, designed to provide three times the daily performance of popular tech stocks. Year to date, these ETPs have delivered exceptional returns, with a particular focus on industry giants such as NVIDIA, Facebook, and Palantir. Examining the data can help us better understand why so many investors are drawn to these high-growth possibilities.

The 3 major stock market indexes recorded gains for the week, rising higher on increased expectations of a Fed pause, the resolution of the debt ceiling impasse and the strong performance of tech stocks. Comments from Fed officials espousing a wait-and-see approach regarding future rate hikes limited losses Wednesday (following a stronger-than-expected JOLTS report) and then helped move markets higher the remainder of the week despite continued historically low initial jobless claims and a strong (in certain regards) jobs report. The passage of the debt ceiling bill by both houses of congress also strongly contributed to last week’s gains. 10-year Treasury yields fell last week, reacting not only to increased expectations of a Fed pause but also to seemingly waning wage pressures (as shown in Friday’s jobs report). The U.S dollar, however, finished the week only slight weaker, strengthening ½ percent Friday following the jobs report. For the week, the S&P 500 Index increased 1.8% to 4,282.37, the Nasdaq Composite Index gained 2.0% reaching 13,240.77, the Dow Jones Industrial Average rose 2.0% to 33,762.76, the 10-year U.S. Treasury rate fell 11bps to 3.70% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.2%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 02 June 2023

06 June, 2023 | GraniteShares
The 3 major stock market indexes recorded gains for the week, rising higher on increased expectations of a Fed pause, the resolution of the debt ceiling impasse and the strong performance of tech stocks. Comments from Fed officials espousing a wait-and-see approach regarding future rate hikes limited losses Wednesday (following a stronger-than-expected JOLTS report) and then helped move markets higher the remainder of the week despite continued historically low initial jobless claims and a strong (in certain regards) jobs report. The passage of the debt ceiling bill by both houses of congress also strongly contributed to last week’s gains. 10-year Treasury yields fell last week, reacting not only to increased expectations of a Fed pause but also to seemingly waning wage pressures (as shown in Friday’s jobs report). The U.S dollar, however, finished the week only slight weaker, strengthening ½ percent Friday following the jobs report. For the week, the S&P 500 Index increased 1.8% to 4,282.37, the Nasdaq Composite Index gained 2.0% reaching 13,240.77, the Dow Jones Industrial Average rose 2.0% to 33,762.76, the 10-year U.S. Treasury rate fell 11bps to 3.70% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.2%.

Major stock market index performances diverged last week with the tech-heavy Nasdaq Composite index strongly outperforming the Dow Jones Industrial Average and the S&P 500 Index. A combination of debt ceiling resolution concerns and hawkish comments from some Fed officials pushed all 3 major indexes at least 1% lower through Wednesday. Nvidia’s much better-than-expected earnings report (released after the close Wednesday) powered chip stocks (and in its wake, other tech stocks) higher Thursday and Friday, lifting both the Nasdaq Composite Index into the green (for the week) and providing upward impetus for the S&P 500 Index. News of potentially significant progress in debt ceiling talks Friday added to Thursday’s gains particularly for the Nasdaq Composite Index. The Dow Jones Industrial Average was the laggard for the week, hurt by its low exposure to tech stocks and greater vulnerability to growing Fed tightening concerns. Stronger-than-expected economic data, including a greater-than-expected core PCE Price Index release, continued low level of initial jobless claims and stronger-thanexpected durable goods orders, raised expectations of a 25bps hike in June (and perhaps at the following meeting), increasing concerns of slowing growth/recessions and dampening the performance of Dow Jones Industrial Average. Reflecting those concerns, the 10-year Treasury rate finished the week 13bps higher with almost all the increase coming from rising 10-year real rates. The U.S. dollar behaved similarly, strengthening over the week. For the week, the S&P 500 Index rose 0.3% to 4,205.45, the Nasdaq Composite Index gained 2.5% reaching 12,975.69, the Dow Jones Industrial Average decreased 1% to 33,093.34, the 10-year U.S. Treasury rate increased 13bps to 3.81% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 1.0%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 26 May 2023

31 May, 2023 | GraniteShares
Major stock market index performances diverged last week with the tech-heavy Nasdaq Composite index strongly outperforming the Dow Jones Industrial Average and the S&P 500 Index. A combination of debt ceiling resolution concerns and hawkish comments from some Fed officials pushed all 3 major indexes at least 1% lower through Wednesday. Nvidia’s much better-than-expected earnings report (released after the close Wednesday) powered chip stocks (and in its wake, other tech stocks) higher Thursday and Friday, lifting both the Nasdaq Composite Index into the green (for the week) and providing upward impetus for the S&P 500 Index. News of potentially significant progress in debt ceiling talks Friday added to Thursday’s gains particularly for the Nasdaq Composite Index. The Dow Jones Industrial Average was the laggard for the week, hurt by its low exposure to tech stocks and greater vulnerability to growing Fed tightening concerns. Stronger-than-expected economic data, including a greater-than-expected core PCE Price Index release, continued low level of initial jobless claims and stronger-thanexpected durable goods orders, raised expectations of a 25bps hike in June (and perhaps at the following meeting), increasing concerns of slowing growth/recessions and dampening the performance of Dow Jones Industrial Average. Reflecting those concerns, the 10-year Treasury rate finished the week 13bps higher with almost all the increase coming from rising 10-year real rates. The U.S. dollar behaved similarly, strengthening over the week. For the week, the S&P 500 Index rose 0.3% to 4,205.45, the Nasdaq Composite Index gained 2.5% reaching 12,975.69, the Dow Jones Industrial Average decreased 1% to 33,093.34, the 10-year U.S. Treasury rate increased 13bps to 3.81% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 1.0%.

Debt ceiling resolution expectations drove most of last week’s stock market performance though good earnings reports and decent economic news also contributed. Early week uncertainty surrounding progress on a debt ceiling compromise and weaker-than-expected retails sales moved the Dow Jones Industrial Average and the S&P 500 Index lower through Tuesday and capped Nasdaq Composite Index gains. Reports of progress in debt ceiling talks Wednesday and Thursday along with lower-than-expected initial jobless claims (Thursday) and the Atlanta Fed’s revision higher to its Q2 GDP estimate reduced concerns of recession, pushing stock indexes substantially higher. Fed Chair Jerome Powell’s comments suggesting tighter bank credit conditions (resulting from regional bank stress) may slow growth and House Speaker Kevin McCarthy’s announcement of a pause in debt ceiling talks moved all 3 indexes lower on Friday, reversing intraday gains. The 10-year Treasury rate increased 22bps last week, moving higher each day of the week. 10-year real rates increased 15bps (to 1.43%) while 10-year inflation expectations rose 7 bps (to 2.25%). For the week, the S&P 500 Index rose 1.6% to 4,191.98, the Nasdaq Composite Index climbed 3.0% to 12,657.90, the Dow Jones Industrial Average increased 0.4% to 33,426.43, the 10-year U.S. Treasury rate increased 22bps to 3.68% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.5%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 19 May 2023

23 May, 2023 | GraniteShares
Debt ceiling resolution expectations drove most of last week’s stock market performance though good earnings reports and decent economic news also contributed. Early week uncertainty surrounding progress on a debt ceiling compromise and weaker-than-expected retails sales moved the Dow Jones Industrial Average and the S&P 500 Index lower through Tuesday and capped Nasdaq Composite Index gains. Reports of progress in debt ceiling talks Wednesday and Thursday along with lower-than-expected initial jobless claims (Thursday) and the Atlanta Fed’s revision higher to its Q2 GDP estimate reduced concerns of recession, pushing stock indexes substantially higher. Fed Chair Jerome Powell’s comments suggesting tighter bank credit conditions (resulting from regional bank stress) may slow growth and House Speaker Kevin McCarthy’s announcement of a pause in debt ceiling talks moved all 3 indexes lower on Friday, reversing intraday gains. The 10-year Treasury rate increased 22bps last week, moving higher each day of the week. 10-year real rates increased 15bps (to 1.43%) while 10-year inflation expectations rose 7 bps (to 2.25%). For the week, the S&P 500 Index rose 1.6% to 4,191.98, the Nasdaq Composite Index climbed 3.0% to 12,657.90, the Dow Jones Industrial Average increased 0.4% to 33,426.43, the 10-year U.S. Treasury rate increased 22bps to 3.68% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.5%.

Indexes were mixed last week with the Nasdaq Composite Index realizing a small gain and both the S&P 500 Index and Dow Jones Industrial Average ending the week lower. Prior to Wednesday’s CPI release, stock markets generally moved lower on tightening credit conditions resulting from regional bank concerns and uncertainty regarding future Fed monetary policy. A slightly better-than-expected CPI release moved stock prices higher on growing expectations the Fed would not only pause rate hikes but also would be more likely to ease later this year. And while Thursday’s PPI release added to that sentiment, recession concerns re-emerged on the back of renewed regional bank concerns (PacWest’s share price fell 23% after reporting it continued to see deposit outflows) and higher-than-expected initial jobless claims, pressuring stock markets lower or, in the case of the Nasdaq Composite Index, limiting gains. Friday’s University of Michigan Consumer Sentiment Survey added to stock market woes, showing long-term inflation expectations rose to levels not seen since 2011, greatly reducing expectations of the Fed easing this year and pushing all 3 major stock indexes lower on the day. The 10-year Treasury rate, buffeted by changing Fed expectations, evolving regional bank concerns and uncertainty regarding economic growth, ended the week only slightly higher. For the week, the S&P 500 Index decreased 0.3% to 4,124.08, the Nasdaq Composite Index rose 0.4% to 12,284.71, the Dow Jones Industrial Average fell 1.1% to 33,300.62, the 10-year U.S. Treasury rate increased 3bps to 3.46% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 1.5%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 12 May 2023

16 May, 2023 | GraniteShares
Indexes were mixed last week with the Nasdaq Composite Index realizing a small gain and both the S&P 500 Index and Dow Jones Industrial Average ending the week lower. Prior to Wednesday’s CPI release, stock markets generally moved lower on tightening credit conditions resulting from regional bank concerns and uncertainty regarding future Fed monetary policy. A slightly better-than-expected CPI release moved stock prices higher on growing expectations the Fed would not only pause rate hikes but also would be more likely to ease later this year. And while Thursday’s PPI release added to that sentiment, recession concerns re-emerged on the back of renewed regional bank concerns (PacWest’s share price fell 23% after reporting it continued to see deposit outflows) and higher-than-expected initial jobless claims, pressuring stock markets lower or, in the case of the Nasdaq Composite Index, limiting gains. Friday’s University of Michigan Consumer Sentiment Survey added to stock market woes, showing long-term inflation expectations rose to levels not seen since 2011, greatly reducing expectations of the Fed easing this year and pushing all 3 major stock indexes lower on the day. The 10-year Treasury rate, buffeted by changing Fed expectations, evolving regional bank concerns and uncertainty regarding economic growth, ended the week only slightly higher. For the week, the S&P 500 Index decreased 0.3% to 4,124.08, the Nasdaq Composite Index rose 0.4% to 12,284.71, the Dow Jones Industrial Average fell 1.1% to 33,300.62, the 10-year U.S. Treasury rate increased 3bps to 3.46% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 1.5%.

A week defined by banking system concerns and uncertainty regarding the Fed’s future monetary policy. Monday’s seizure and sale of First Republic Bank barely moved markets with banking system concerns allayed by the swift and cauterizing move of the FDIC. Banking system concerns, however, resurfaced Tuesday (in front of Wednesday’s FOMC announcement) driving regional bank stock prices markedly lower and significantly contributing to the decline of all 3 major stock market indexes. Signs of economic weakness, starkly illustrated by falling job openings and sharply lower oil prices, also pressured index levels lower as did growing expectations of a 25bp rate hike. Wednesday’s FOMC announcement of a 25bp rate hike, along with language strongly suggesting the Fed would be “pausing”, initially moved stock prices higher. Fed Chair Jerome Powell’s comments denying the Fed was pausing, reversed sentiment and sent index levels sharply lower. Banking stocks again took center stage Thursday with stock prices of PacWest, Western Alliance Bancorp and First Horizon falling sharply on liquidity concerns. The ensuing risk-off sentiment once again sent major stock market index levels lower. Stock markets rallied sharply Friday, spurred by a much better-than-expected Apple earnings report, a significantly stronger-thanexpected jobs report and noticeably lessened banking system concerns. All 3 major stock market indexes, down over 2% through Thursday, finished the week well off their lows with the Nasdaq Composite Index eking out a small gain. The 10-year Treasury rate had a volatile week but finished unchanged as did the 10-year real rate and 10-year inflation expectations. For the week, the S&P 500 Index decreased 0.8% to 4,136.25, the Nasdaq Composite Index increased 0.1% to 12,235.41, the Dow Jones Industrial Average fell 1.2% to 33,674.31, the 10-year U.S. Treasury rate was unchanged at 3.43% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.4%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 05 May 2023

09 May, 2023 | GraniteShares
A week defined by banking system concerns and uncertainty regarding the Fed’s future monetary policy. Monday’s seizure and sale of First Republic Bank barely moved markets with banking system concerns allayed by the swift and cauterizing move of the FDIC. Banking system concerns, however, resurfaced Tuesday (in front of Wednesday’s FOMC announcement) driving regional bank stock prices markedly lower and significantly contributing to the decline of all 3 major stock market indexes. Signs of economic weakness, starkly illustrated by falling job openings and sharply lower oil prices, also pressured index levels lower as did growing expectations of a 25bp rate hike. Wednesday’s FOMC announcement of a 25bp rate hike, along with language strongly suggesting the Fed would be “pausing”, initially moved stock prices higher. Fed Chair Jerome Powell’s comments denying the Fed was pausing, reversed sentiment and sent index levels sharply lower. Banking stocks again took center stage Thursday with stock prices of PacWest, Western Alliance Bancorp and First Horizon falling sharply on liquidity concerns. The ensuing risk-off sentiment once again sent major stock market index levels lower. Stock markets rallied sharply Friday, spurred by a much better-than-expected Apple earnings report, a significantly stronger-thanexpected jobs report and noticeably lessened banking system concerns. All 3 major stock market indexes, down over 2% through Thursday, finished the week well off their lows with the Nasdaq Composite Index eking out a small gain. The 10-year Treasury rate had a volatile week but finished unchanged as did the 10-year real rate and 10-year inflation expectations. For the week, the S&P 500 Index decreased 0.8% to 4,136.25, the Nasdaq Composite Index increased 0.1% to 12,235.41, the Dow Jones Industrial Average fell 1.2% to 33,674.31, the 10-year U.S. Treasury rate was unchanged at 3.43% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.4%.

Major stock-market indexes moved slightly higher last week powered mainly by better-than-expected big-tech earnings reports. Markets struggled early in the week, however, following First Republic Bank’s earnings report detailing extremely large ($100 billion) deposit outflows as well as on consumer confidence falling to a 9-month low. Renewed concerns of systemic banking problems drove stock markets lower while increasing safe-haven demand for the U.S. dollar and U.S. Treasuries. Better-than-expected earnings reports from Meta Platforms and Microsoft boosted stock prices while weak guidance from Amazon helped to pressure prices lower. Thursday’s smaller-than-expected GDP release, overshadowed by META’s earnings report, worked to lower expectations of a Fed rate hike at next week’s FOMC meeting, supporting markets as well. Friday’s PCE Price Index release while revealing cooling inflation overall still showed somewhat resilient inflation with the core PCE Price Index level coming in as expected MoM but slightly higher on YoY basis, helped move stock indexes higher as well. First Republic Bank moved sharply lower Friday with growing expectations of FDIC involvement, mitigating broader market fallout. For the week, the S&P 500 Index increased 0.9% to 4,170.20, the Nasdaq Composite Index rose 1.1% to 12,200.07, the Dow Jones Industrial Average gained 0.9% to 34,098.95, the 10-year U.S. Treasury rate fell 14bps to 3.43% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.2%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 28 April 2023

02 May, 2023 | GraniteShares
Major stock-market indexes moved slightly higher last week powered mainly by better-than-expected big-tech earnings reports. Markets struggled early in the week, however, following First Republic Bank’s earnings report detailing extremely large ($100 billion) deposit outflows as well as on consumer confidence falling to a 9-month low. Renewed concerns of systemic banking problems drove stock markets lower while increasing safe-haven demand for the U.S. dollar and U.S. Treasuries. Better-than-expected earnings reports from Meta Platforms and Microsoft boosted stock prices while weak guidance from Amazon helped to pressure prices lower. Thursday’s smaller-than-expected GDP release, overshadowed by META’s earnings report, worked to lower expectations of a Fed rate hike at next week’s FOMC meeting, supporting markets as well. Friday’s PCE Price Index release while revealing cooling inflation overall still showed somewhat resilient inflation with the core PCE Price Index level coming in as expected MoM but slightly higher on YoY basis, helped move stock indexes higher as well. First Republic Bank moved sharply lower Friday with growing expectations of FDIC involvement, mitigating broader market fallout. For the week, the S&P 500 Index increased 0.9% to 4,170.20, the Nasdaq Composite Index rose 1.1% to 12,200.07, the Dow Jones Industrial Average gained 0.9% to 34,098.95, the 10-year U.S. Treasury rate fell 14bps to 3.43% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.2%.

Major stock-market indexes moved slightly lower last week with investors attempting to divine the market direction amongst mixed economic/earnings reports and Fed rate-hike concerns. Monday’s much better-thanexpected Empire State Manufacturing Index release was countered by Thursday’s unexpectedly sharply weaker Philadelphia Fed Manufacturing Index which in turn was countered by Friday’s S&P Global US Composite PMI release showing much stronger-than-expected manufacturing and services activity throughout the U.S. Initial jobless claims came in higher than expected, adding to concerns of a slowing economy. Earnings reports added to market uncertainty with mixed bank and retailer results. Fed rate-hike concerns and expectations, muddled by the week’s seemingly conflicting data points, added to market uncertainty. For the week, the S&P 500 Index decreased 0.1% to 4,133.52, the Nasdaq Composite Index dropped 0.4% to 12,072.46, the Dow Jones Industrial Average fell 0.2% to 33,809.33, the 10-year U.S. Treasury rate increased 6bps to 3.57% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.2%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 21 April 2023

25 April, 2023 | GraniteShares
Major stock-market indexes moved slightly lower last week with investors attempting to divine the market direction amongst mixed economic/earnings reports and Fed rate-hike concerns. Monday’s much better-thanexpected Empire State Manufacturing Index release was countered by Thursday’s unexpectedly sharply weaker Philadelphia Fed Manufacturing Index which in turn was countered by Friday’s S&P Global US Composite PMI release showing much stronger-than-expected manufacturing and services activity throughout the U.S. Initial jobless claims came in higher than expected, adding to concerns of a slowing economy. Earnings reports added to market uncertainty with mixed bank and retailer results. Fed rate-hike concerns and expectations, muddled by the week’s seemingly conflicting data points, added to market uncertainty. For the week, the S&P 500 Index decreased 0.1% to 4,133.52, the Nasdaq Composite Index dropped 0.4% to 12,072.46, the Dow Jones Industrial Average fell 0.2% to 33,809.33, the 10-year U.S. Treasury rate increased 6bps to 3.57% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.2%.

Stock markets rose last week with value stocks outperforming growth stocks as expectations of further Fed tightening increased as the week progressed. The previous Friday’s robust job report helped boost cyclical/value stock prices while adding to expectations Fed rate hikes would continue through at least May, hurting growth/tech stock prices. This sentiment was reinforced by Wednesday’s CPI release showing cooling-but-still-stubbornly-high inflation with value stock prices benefiting over growth stock prices. FOMC minutes, also released Wednesday, did the same. While Thursday’s lower-than-expected PPI release moved all 3-major indexes higher (with the Nasdaq Composite increasing the most), Friday’s comments from Fed officials calling for higher rates mitigated those moves, sending index levels lower. Changes in Treasury rates reflected growing expectations of more Fed rate hikes with the 10-year Treasury rate increasing 21bps. 10-year real rates were the primary reason for the increase, rising 15bps. The U.S. dollar, weaker 0.8% through Thursday, strengthened 0.6% Friday (following comments from Fed officials). For the week, the S&P 500 Index increased 0.8% to 4,137.64 the Nasdaq Composite Index rose 0.3% to 12,123.46, the Dow Jones Industrial Average gained 1.2% to 33,885.31, the 10-year U.S. Treasury rate increased 21bps to 3.51% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.3%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 14 April 2023

18 April, 2023 | GraniteShares
Stock markets rose last week with value stocks outperforming growth stocks as expectations of further Fed tightening increased as the week progressed. The previous Friday’s robust job report helped boost cyclical/value stock prices while adding to expectations Fed rate hikes would continue through at least May, hurting growth/tech stock prices. This sentiment was reinforced by Wednesday’s CPI release showing cooling-but-still-stubbornly-high inflation with value stock prices benefiting over growth stock prices. FOMC minutes, also released Wednesday, did the same. While Thursday’s lower-than-expected PPI release moved all 3-major indexes higher (with the Nasdaq Composite increasing the most), Friday’s comments from Fed officials calling for higher rates mitigated those moves, sending index levels lower. Changes in Treasury rates reflected growing expectations of more Fed rate hikes with the 10-year Treasury rate increasing 21bps. 10-year real rates were the primary reason for the increase, rising 15bps. The U.S. dollar, weaker 0.8% through Thursday, strengthened 0.6% Friday (following comments from Fed officials). For the week, the S&P 500 Index increased 0.8% to 4,137.64 the Nasdaq Composite Index rose 0.3% to 12,123.46, the Dow Jones Industrial Average gained 1.2% to 33,885.31, the 10-year U.S. Treasury rate increased 21bps to 3.51% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.3%.

A mixed week for stocks with the Nasdaq Composite Index ending lower on the week, the S&P 500 Index basically unchanged and the Dow Jones Industrial Average finishing the week slightly higher. Monday opened to news of OPEC+’s surprise 1.2 million bpd production cutback, sending oil prices sharply higher and, as a result, pushing oil stocks and the Dow Jones Industrial Average and S&P 500 Index higher as well. Weak economic data throughout the week while increasing expectations of less aggressive Fed monetary also raised the spectre of recession, resulting in mixed effects on stock prices. Weaker-than-expected ISM Manufacturing and Services Index releases, a pronounced drop in job openings and higher-than-expected initial jobless claims all helped to move Treasury rates lower while arousing concerns regarding earnings (especially for growth stocks) and economic growth. Higher oil prices – up almost 7% on the week – added to economic growth and inflation concerns, capping stock price gains. Reflecting growth concerns and expectations of easier Fed monetary police, 10-year Treasury rates fell 18bps (with real rates and inflation expectation falling equally) and the U.S. dollar weakened. For the week, the S&P 500 Index decreased 0.1% to 4,105.02 the Nasdaq Composite Index dropped 1.1% to 12,087.96, the Dow Jones Industrial Average increased 0.6% to 33,485.35, the 10-year U.S. Treasury rate fell 18bps to 3.30% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.6%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 06 April 2023

12 April, 2023 | GraniteShares
A mixed week for stocks with the Nasdaq Composite Index ending lower on the week, the S&P 500 Index basically unchanged and the Dow Jones Industrial Average finishing the week slightly higher. Monday opened to news of OPEC+’s surprise 1.2 million bpd production cutback, sending oil prices sharply higher and, as a result, pushing oil stocks and the Dow Jones Industrial Average and S&P 500 Index higher as well. Weak economic data throughout the week while increasing expectations of less aggressive Fed monetary also raised the spectre of recession, resulting in mixed effects on stock prices. Weaker-than-expected ISM Manufacturing and Services Index releases, a pronounced drop in job openings and higher-than-expected initial jobless claims all helped to move Treasury rates lower while arousing concerns regarding earnings (especially for growth stocks) and economic growth. Higher oil prices – up almost 7% on the week – added to economic growth and inflation concerns, capping stock price gains. Reflecting growth concerns and expectations of easier Fed monetary police, 10-year Treasury rates fell 18bps (with real rates and inflation expectation falling equally) and the U.S. dollar weakened. For the week, the S&P 500 Index decreased 0.1% to 4,105.02 the Nasdaq Composite Index dropped 1.1% to 12,087.96, the Dow Jones Industrial Average increased 0.6% to 33,485.35, the 10-year U.S. Treasury rate fell 18bps to 3.30% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.6%.

Except for Tuesday, major stock market indexes moved higher each day last week with the S&P 500 Index, Nasdaq Composite Index and the Dow Jones Industrial Average registering almost identical performances. Last week’s move higher mainly centered on lessened banking-sector concerns (with the week starting on news First Citizens Bank purchased Silicon Valley Bank) and on increased expectations the Fed would pause rate increases (and perhaps even ease this year). Continued low initial jobless claims, greater-than-expected pending home sales and a better-than-expected PCE Price Index release (Friday) added to risk-on sentiment as well. 10-year Treasury rates moved 11bps higher last week, reflecting diminished safe-haven demand as rates moved off their recent lows while the U.S. dollar continued to weaken. For the week, the S&P 500 Index increased 3.4% to 4,105.80 the Nasdaq Composite Index also increased 3.4% to 12,221.91, the Dow Jones Industrial Average increased 3.2% to 33,273.10, the 10-year U.S. Treasury rate rose 11bps to 3.48% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.5%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 31 March 2023

04 April, 2023 | GraniteShares
Except for Tuesday, major stock market indexes moved higher each day last week with the S&P 500 Index, Nasdaq Composite Index and the Dow Jones Industrial Average registering almost identical performances. Last week’s move higher mainly centered on lessened banking-sector concerns (with the week starting on news First Citizens Bank purchased Silicon Valley Bank) and on increased expectations the Fed would pause rate increases (and perhaps even ease this year). Continued low initial jobless claims, greater-than-expected pending home sales and a better-than-expected PCE Price Index release (Friday) added to risk-on sentiment as well. 10-year Treasury rates moved 11bps higher last week, reflecting diminished safe-haven demand as rates moved off their recent lows while the U.S. dollar continued to weaken. For the week, the S&P 500 Index increased 3.4% to 4,105.80 the Nasdaq Composite Index also increased 3.4% to 12,221.91, the Dow Jones Industrial Average increased 3.2% to 33,273.10, the 10-year U.S. Treasury rate rose 11bps to 3.48% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.5%.

An up week for all 3 major stock market indexes, rising every day but Wednesday (FOMC announcement day) and despite hawkish Fed Chair Powell comments and lingering banking system concerns. The week opened with news of the UBS acquisition of Credit Suisse helping to slightly alleviate banking system concerns and moving stock markets higher. Focused concerns still remained, however, with First Republic Bank share prices falling nearly 50% (on Monday). All 3 major stock market indexes powered higher Tuesday on the back of diminished banking system concerns and expectations of a “supportive” Fed decision Wednesday. Treasury rates, steeply lower on the back of flight-to-quality investing, reflecting this same sentiment rose sharply Tuesday with the 2-year Treasury rate, for example, climbing 25 bps higher An as-expected 25bp rate hike accompanied by less-than-accommodative comments from Chairman Powell reversed Tuesday’s sentiment, sending stock indexes sharply lower and Treasury rates, once again, sharply lower. While Chairman Powell stated he expected one more 25bp rate increase this year, he also insisted he did not expect the Fed to ease in 2023 despite very possible restrictive credit conditions arising from the current health of the banking system. Risk-on sentiment returned Thursday, though, with markets more or less refuting Chairman Powell’s comments, believing the Fed would indeed ease in 2023, bolstering stock prices and moving Treasury rates lower through the end of the week. Fresh banking system concerns Friday, sending Deutsch Bank shares pronouncedly lower, moved larger bank stock prices lower (though not regional bank stock prices), capping index level gains. For the week, the S&P 500 Index increased 1.4% to 3,970.99 the Nasdaq Composite Index rose 1.7% to 11,823.96, the Dow Jones Industrial Average increased 1.2% to 32,238.15, the 10- year U.S. Treasury rate fell 7bps to 3.37% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.6%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 24 March 2023

28 March, 2023 | GraniteShares
An up week for all 3 major stock market indexes, rising every day but Wednesday (FOMC announcement day) and despite hawkish Fed Chair Powell comments and lingering banking system concerns. The week opened with news of the UBS acquisition of Credit Suisse helping to slightly alleviate banking system concerns and moving stock markets higher. Focused concerns still remained, however, with First Republic Bank share prices falling nearly 50% (on Monday). All 3 major stock market indexes powered higher Tuesday on the back of diminished banking system concerns and expectations of a “supportive” Fed decision Wednesday. Treasury rates, steeply lower on the back of flight-to-quality investing, reflecting this same sentiment rose sharply Tuesday with the 2-year Treasury rate, for example, climbing 25 bps higher An as-expected 25bp rate hike accompanied by less-than-accommodative comments from Chairman Powell reversed Tuesday’s sentiment, sending stock indexes sharply lower and Treasury rates, once again, sharply lower. While Chairman Powell stated he expected one more 25bp rate increase this year, he also insisted he did not expect the Fed to ease in 2023 despite very possible restrictive credit conditions arising from the current health of the banking system. Risk-on sentiment returned Thursday, though, with markets more or less refuting Chairman Powell’s comments, believing the Fed would indeed ease in 2023, bolstering stock prices and moving Treasury rates lower through the end of the week. Fresh banking system concerns Friday, sending Deutsch Bank shares pronouncedly lower, moved larger bank stock prices lower (though not regional bank stock prices), capping index level gains. For the week, the S&P 500 Index increased 1.4% to 3,970.99 the Nasdaq Composite Index rose 1.7% to 11,823.96, the Dow Jones Industrial Average increased 1.2% to 32,238.15, the 10- year U.S. Treasury rate fell 7bps to 3.37% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.6%.

Banking system concerns, inflation and this week’s FOMC meeting dominated the market’s attention last week. FDIC, Treasury and Fed support provided to Silicon Valley Bank fleetingly shored up banking concern sentiment but the precarious position of First Republic Bank (as well as of Swiss bank Credit Suisse) despite support received by the Fed and a consortium of large banks sharply weakened it. Expectations of the Fed not raising rates this week increased from 0% to (at one point) 33% in the face of banking system concerns and despite a CPI release (Tuesday) showing core inflation increased MoM. Indeed, the Fed’s balance sheet, which the Fed has been strenuously working to reduce, increased $300 billion last week as the Fed acted to provide needed liquidity to the banking system. The 10-year Treasury rate dropped 26bps, moved not only by a flight to quality but also on expectations of less aggressive Fed monetary policy. Reflecting those expectations as well, the Nasdaq Composite Index strongly outperformed the other 2 major indexes, gaining over 4% compared to an almost unchanged Dow Jones Industrial Average and an up 1% S&P 500 Index. The 4 largest tech stocks – Alphabet, Amazon, Apple and Microsoft - had their best week in a long time (Microsoft increased the most, jumping 12% higher). For the week, the S&P 500 Index increased 1.4% to 3,916.64, the Nasdaq Composite Index rose 4.4% to 11,630.51, the Dow Jones Industrial Average decreased 0.2% to 31,858.89, the 10-year U.S. Treasury rate fell 26bp to 3.44% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.7%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 17 March 2023

20 March, 2023 | GraniteShares
Banking system concerns, inflation and this week’s FOMC meeting dominated the market’s attention last week. FDIC, Treasury and Fed support provided to Silicon Valley Bank fleetingly shored up banking concern sentiment but the precarious position of First Republic Bank (as well as of Swiss bank Credit Suisse) despite support received by the Fed and a consortium of large banks sharply weakened it. Expectations of the Fed not raising rates this week increased from 0% to (at one point) 33% in the face of banking system concerns and despite a CPI release (Tuesday) showing core inflation increased MoM. Indeed, the Fed’s balance sheet, which the Fed has been strenuously working to reduce, increased $300 billion last week as the Fed acted to provide needed liquidity to the banking system. The 10-year Treasury rate dropped 26bps, moved not only by a flight to quality but also on expectations of less aggressive Fed monetary policy. Reflecting those expectations as well, the Nasdaq Composite Index strongly outperformed the other 2 major indexes, gaining over 4% compared to an almost unchanged Dow Jones Industrial Average and an up 1% S&P 500 Index. The 4 largest tech stocks – Alphabet, Amazon, Apple and Microsoft - had their best week in a long time (Microsoft increased the most, jumping 12% higher). For the week, the S&P 500 Index increased 1.4% to 3,916.64, the Nasdaq Composite Index rose 4.4% to 11,630.51, the Dow Jones Industrial Average decreased 0.2% to 31,858.89, the 10-year U.S. Treasury rate fell 26bp to 3.44% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.7%.

U.S stock markets ended noticeably lower last week, pressured – initially – by growing Fed-induced recession concerns and – later – by contagion fears excited by the failure of Silicon Valley Bank on Friday. Fed Chair Powell’s testimony before the Senate on Tuesday added to expectations of a more aggressive Fed with Chairman Powell commenting that the strength of the jobs market, spending and factory production may warrant a faster pace of rate hikes. As a result, all 3 major stock indexes fell more than 1 ¼ percent. His testimony before the House on Wednesday seemed to slightly walk back Tuesday’s comments, with Chairman Powell saying no decision had been made regarding the size of the rate hike in this month’s upcoming meeting, lifting markets off their Tuesdays’ lows. All 3 major indexes fell sharply Thursday, ostensibly due to an initial jobless claims number, though greater than expected, still indicative of a tight jobs market, bolstering expectations of a strong jobs report Friday. News of Silicon Valley Bank’s distress (i.e., needing to raise capital after its sale of assets left a significant shortfall) with its stock price plummeting 60%, may have also contributed to Thursday’s decline as well. Friday’s eagerly anticipated jobs report, though sending mixed signals, provided reason for the Fed to refrain from returning to its aggressive tightening policy and maintain its 25bp, wait-and-see approach. While jobs created increased more than expected, the unemployment rate ticked higher and wage pressures cooled. Stock indexes attempted to move higher following the report but news of Silicon Valley Bank’s failure (and the accompanying contagion fears) pushed all 3 major stock indexes over 1% lower. Treasury rates across the curve moved sharply lower, reacting to both safe-haven demand and growing sentiment the Fed, mindful of Silicon Valley Bank fallout, would need to ease sooner than previously expected. Similarly, The U.S. dollar, up over 1% through Wednesday, weakened significantly, also reacting to expectations of changing Fed monetary policy. For the week, the S&P 500 Index fell 4.5% to 3,861.59, the Nasdaq Composite Index dropped 4.7% to 11,138.89, the Dow Jones Industrial Average declined 4.4% to 31,109.96, the 10-year U.S. Treasury rate fell 26bp to 3.70% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.1%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 10 March 2023

13 March, 2023 | GraniteShares
U.S stock markets ended noticeably lower last week, pressured – initially – by growing Fed-induced recession concerns and – later – by contagion fears excited by the failure of Silicon Valley Bank on Friday. Fed Chair Powell’s testimony before the Senate on Tuesday added to expectations of a more aggressive Fed with Chairman Powell commenting that the strength of the jobs market, spending and factory production may warrant a faster pace of rate hikes. As a result, all 3 major stock indexes fell more than 1 ¼ percent. His testimony before the House on Wednesday seemed to slightly walk back Tuesday’s comments, with Chairman Powell saying no decision had been made regarding the size of the rate hike in this month’s upcoming meeting, lifting markets off their Tuesdays’ lows. All 3 major indexes fell sharply Thursday, ostensibly due to an initial jobless claims number, though greater than expected, still indicative of a tight jobs market, bolstering expectations of a strong jobs report Friday. News of Silicon Valley Bank’s distress (i.e., needing to raise capital after its sale of assets left a significant shortfall) with its stock price plummeting 60%, may have also contributed to Thursday’s decline as well. Friday’s eagerly anticipated jobs report, though sending mixed signals, provided reason for the Fed to refrain from returning to its aggressive tightening policy and maintain its 25bp, wait-and-see approach. While jobs created increased more than expected, the unemployment rate ticked higher and wage pressures cooled. Stock indexes attempted to move higher following the report but news of Silicon Valley Bank’s failure (and the accompanying contagion fears) pushed all 3 major stock indexes over 1% lower. Treasury rates across the curve moved sharply lower, reacting to both safe-haven demand and growing sentiment the Fed, mindful of Silicon Valley Bank fallout, would need to ease sooner than previously expected. Similarly, The U.S. dollar, up over 1% through Wednesday, weakened significantly, also reacting to expectations of changing Fed monetary policy. For the week, the S&P 500 Index fell 4.5% to 3,861.59, the Nasdaq Composite Index dropped 4.7% to 11,138.89, the Dow Jones Industrial Average declined 4.4% to 31,109.96, the 10-year U.S. Treasury rate fell 26bp to 3.70% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.1%.

An up-week for major stock market indexes with investor sentiment gently shifting from overarching concerns of a Fed-induced economic slowdown to guarded optimism of Fed restraint amidst a resilient economy. Indexes moved slightly lower through Wednesday, reacting to stronger-than-expected manufacturing activity, pending home sales and non-defence capital goods orders. Comments from Fed officials Thursday, however, supporting 25bp increment rate increases to allow time to ascertain effects from to-date accumulated increases, bolstered risk-on sentiment pushing indexes higher Thursday and Friday. Friday’s gains were the greatest and came despite much stronger-than-expected services sector activity (based on S&P Global U.S. Services PMI Index). 10-year Treasury rates also reflected the change in investor sentiment over the week, ending the week almost unchanged despite rising 11bps intraweek. Interestingly, a 13bp decline in 10-year real rates was offset entirely by a 14bp increase in 10-year inflation expectations. For the week, the S&P 500 Index increased 1.9% to 4,045.64, the Nasdaq Composite Index rose 2.6% to 11,689.01, the Dow Jones Industrial Average gained 1.7% to 33,390.35, the 10-year U.S. Treasury rate increased 1bp to 3.96% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.7%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 03 March 2023

06 March, 2023 | GraniteShares
An up-week for major stock market indexes with investor sentiment gently shifting from overarching concerns of a Fed-induced economic slowdown to guarded optimism of Fed restraint amidst a resilient economy. Indexes moved slightly lower through Wednesday, reacting to stronger-than-expected manufacturing activity, pending home sales and non-defence capital goods orders. Comments from Fed officials Thursday, however, supporting 25bp increment rate increases to allow time to ascertain effects from to-date accumulated increases, bolstered risk-on sentiment pushing indexes higher Thursday and Friday. Friday’s gains were the greatest and came despite much stronger-than-expected services sector activity (based on S&P Global U.S. Services PMI Index). 10-year Treasury rates also reflected the change in investor sentiment over the week, ending the week almost unchanged despite rising 11bps intraweek. Interestingly, a 13bp decline in 10-year real rates was offset entirely by a 14bp increase in 10-year inflation expectations. For the week, the S&P 500 Index increased 1.9% to 4,045.64, the Nasdaq Composite Index rose 2.6% to 11,689.01, the Dow Jones Industrial Average gained 1.7% to 33,390.35, the 10-year U.S. Treasury rate increased 1bp to 3.96% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.7%.

Stock markets started the week on a sour note, with all 3 major indexes falling 2% or more Tuesday (the first trading day of a holiday-shortened week). Tuesday’s dour sentiment was a continuation of the previous week’s but with investors ratcheting up concerns of Fed monetary policy moving rates higher for longer following stronger-than-expected business activity as measured by the PMI Composite Flash release. Wednesday’s release of FOMC minutes revealed no new substantive insights, moving stock index levels only slightly. Thursday saw all three indexes move higher, benefiting from a surging NVDA stock price (up 14%) and despite falling initial jobless claims and increased market expectations of a 50bp rate hike in March. Friday’s higher-than-expected PCE Price Index release combined with a much greater-than-expected increase in consumer spending added to market expectations of more aggressive Fed monetary policy causing all 3 indexes to drop at least 1%. Reflecting similar sentiment as the stock market, the 10-year Treasury rate rose and the U.S. dollar strengthened. The 13bp increase in 10-year Treasury rates came almost entirely from rising real rates (up 12bps). For the week, the S&P 500 Index decreased 2.7% to 3,970.04, the Nasdaq Composite Index fell 3.3% to 11,394.94, the Dow Jones Industrial Average dropped 3.0% to 32,817.05, the 10-year U.S. Treasury rate rose 13bp to 3.95% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 1.3%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 24 February 2023

28 February, 2023 | GraniteShares
Stock markets started the week on a sour note, with all 3 major indexes falling 2% or more Tuesday (the first trading day of a holiday-shortened week). Tuesday’s dour sentiment was a continuation of the previous week’s but with investors ratcheting up concerns of Fed monetary policy moving rates higher for longer following stronger-than-expected business activity as measured by the PMI Composite Flash release. Wednesday’s release of FOMC minutes revealed no new substantive insights, moving stock index levels only slightly. Thursday saw all three indexes move higher, benefiting from a surging NVDA stock price (up 14%) and despite falling initial jobless claims and increased market expectations of a 50bp rate hike in March. Friday’s higher-than-expected PCE Price Index release combined with a much greater-than-expected increase in consumer spending added to market expectations of more aggressive Fed monetary policy causing all 3 indexes to drop at least 1%. Reflecting similar sentiment as the stock market, the 10-year Treasury rate rose and the U.S. dollar strengthened. The 13bp increase in 10-year Treasury rates came almost entirely from rising real rates (up 12bps). For the week, the S&P 500 Index decreased 2.7% to 3,970.04, the Nasdaq Composite Index fell 3.3% to 11,394.94, the Dow Jones Industrial Average dropped 3.0% to 32,817.05, the 10-year U.S. Treasury rate rose 13bp to 3.95% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 1.3%.

A mixed week for major stock market indexes with market sentiment turning from risk-on to risk-off after digesting implications of higher-than-expected inflation readings and strong economic data. All three indexes were higher through Wednesday with the Nasdaq Composite Index leading the pack at up 3%. Initial optimism over cooling inflation combined with strong retail sales morphed into concerns of stubbornly-high inflation and a resilient economy leading to a more aggressive Fed raising rates to higher-than-expected levels for a longer-than-previously expected time. Thursday’s higher-than-expected PPI release along with hawkish Fed officials’ comments added to market malaise with index levels dropping markedly over Thursday and Friday. The Nasdaq Composite Index, though finishing the week higher, fell the most, decreasing just under 2.5% over the last 2 days of the week. The 10-year Treasury rate registered a moderate increase, climbing 8bps over the week with most of the increase due to rising 10-year real rates. The U.S. dollar experienced a somewhat volatile week but finished only slightly stronger. For the week, the S&P 500 Index decreased 0.3% to 4,079.09, the Nasdaq Composite Index increased 0.6% to 11,787.27 the Dow Jones Industrial Average edged slightly lower again, falling 0.1% to 33,862.92, the 10- year U.S. Treasury rate rose 8bp to 3.82% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.2%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 17 February 2023

21 February, 2023 | GraniteShares
A mixed week for major stock market indexes with market sentiment turning from risk-on to risk-off after digesting implications of higher-than-expected inflation readings and strong economic data. All three indexes were higher through Wednesday with the Nasdaq Composite Index leading the pack at up 3%. Initial optimism over cooling inflation combined with strong retail sales morphed into concerns of stubbornly-high inflation and a resilient economy leading to a more aggressive Fed raising rates to higher-than-expected levels for a longer-than-previously expected time. Thursday’s higher-than-expected PPI release along with hawkish Fed officials’ comments added to market malaise with index levels dropping markedly over Thursday and Friday. The Nasdaq Composite Index, though finishing the week higher, fell the most, decreasing just under 2.5% over the last 2 days of the week. The 10-year Treasury rate registered a moderate increase, climbing 8bps over the week with most of the increase due to rising 10-year real rates. The U.S. dollar experienced a somewhat volatile week but finished only slightly stronger. For the week, the S&P 500 Index decreased 0.3% to 4,079.09, the Nasdaq Composite Index increased 0.6% to 11,787.27 the Dow Jones Industrial Average edged slightly lower again, falling 0.1% to 33,862.92, the 10- year U.S. Treasury rate rose 8bp to 3.82% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.2%.

All three major stock market indexes moved lower last week with the Nasdaq Composite Index markedly underperforming the other two. Market direction and sentiment was mainly determined by investors’ evolving expectations of Fed monetary policy going forward. Concerns of continued tight monetary policy eminating from the very strong jobs report released the previous Friday continued into Monday pushing stock prices lower and Treasury rates and the U.S. dollar sharply higher. Tuesday’s comments from Fed Chair Powell, basically reiterating comments following the FOMC announcement the previous week were interpreted positively by the market, focusing more on Powell’s message that the disinflationary process has begun and less on his statements rates will likely need to move higher and remain there for a while, boosting stock prices. That sentiment, however, was reversed over Wednesday and Thursday with Fed-induced recession concerns rising to the forefront, push stock prices lower again. The S&P 500 Index, for example, up 0.7% through Tuesday, was down 1.8% through Thursday. Markets were mixed Friday, with the Nasdaq Composite Index moving lower and the S&P 500 Index and the Dow Jones Composite Index moving higher as investors moved into the weekend and prepared for this week’s CPI release. The 10-year Treasury rate increased significantly over the week, rising every day but Wednesday, ending the week 22bps higher. The increase came from both an increase in real rates (up 10bps) and inflation expectations (up 12bps). The U.S. dollar ended the week stronger keeping gains registered Monday. At week’s end, the S&P 500 Index decreased 1.1% to 4,090.46, the Nasdaq Composite Index fell 2.4% to 11,718.12 the Dow Jones Industrial Average edged slightly lower, falling 0.2% to 33,869.40, the 10-year U.S. Treasury rate rose 22bp to 3.74% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.6%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 10 February 2023

15 February, 2023 | GraniteShares
All three major stock market indexes moved lower last week with the Nasdaq Composite Index markedly underperforming the other two. Market direction and sentiment was mainly determined by investors’ evolving expectations of Fed monetary policy going forward. Concerns of continued tight monetary policy eminating from the very strong jobs report released the previous Friday continued into Monday pushing stock prices lower and Treasury rates and the U.S. dollar sharply higher. Tuesday’s comments from Fed Chair Powell, basically reiterating comments following the FOMC announcement the previous week were interpreted positively by the market, focusing more on Powell’s message that the disinflationary process has begun and less on his statements rates will likely need to move higher and remain there for a while, boosting stock prices. That sentiment, however, was reversed over Wednesday and Thursday with Fed-induced recession concerns rising to the forefront, push stock prices lower again. The S&P 500 Index, for example, up 0.7% through Tuesday, was down 1.8% through Thursday. Markets were mixed Friday, with the Nasdaq Composite Index moving lower and the S&P 500 Index and the Dow Jones Composite Index moving higher as investors moved into the weekend and prepared for this week’s CPI release. The 10-year Treasury rate increased significantly over the week, rising every day but Wednesday, ending the week 22bps higher. The increase came from both an increase in real rates (up 10bps) and inflation expectations (up 12bps). The U.S. dollar ended the week stronger keeping gains registered Monday. At week’s end, the S&P 500 Index decreased 1.1% to 4,090.46, the Nasdaq Composite Index fell 2.4% to 11,718.12 the Dow Jones Industrial Average edged slightly lower, falling 0.2% to 33,869.40, the 10-year U.S. Treasury rate rose 22bp to 3.74% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.6%.

Through Thursday, stock markets powered higher, propelled by an as-expected FOMC rate decision, the absence of direct, hawkish comments from Fed Chair Powell following the decision and indications wage inflation – a primary concern for the Fed – was slowing. META’s earnings beat helped as well, with META’s stock price surging 23% Thursday, lifting other tech stocks and, in particular, the Nasdaq Composite Index as well. After-the-close earnings reports Thursday from Alphabet, Apple and Amazon, however, cooled market enthusiasm overnight and then Friday morning’s much stronger-than-expected jobs report renewed concerns of continued Fed vigiliance, sending all 3 major stock market indexes lower on the day. While the indexes all closed lower Friday, the Nasdaq Composite and S&P 500 Indexes still registered gains on the week. 10-year Treasury rates, down almost 11bps through Thursday, reversed course Friday, jumping 12bps and leaving the 10-year Treasury rate 1bp higher on the week (an 11bp rise in 10-year real rates was offset by a 10bp fall in 10-year inflation expectations). The U.S. dollar behaved similarly, moving from slightly weaker through Thursday to stronger by 1% over the week. At week’s end, the S&P 500 Index increased 1.6% to 4,136.48, the Nasdaq Composite Index rose 3.3% to 12,006.96, the Dow Jones Industrial Average decreased 0.2% to 33,925.06, the 10-year U.S. Treasury rate rose 1bp to 3.52% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 1.0%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 03 February 2023

07 February, 2023 | GraniteShares
Through Thursday, stock markets powered higher, propelled by an as-expected FOMC rate decision, the absence of direct, hawkish comments from Fed Chair Powell following the decision and indications wage inflation – a primary concern for the Fed – was slowing. META’s earnings beat helped as well, with META’s stock price surging 23% Thursday, lifting other tech stocks and, in particular, the Nasdaq Composite Index as well. After-the-close earnings reports Thursday from Alphabet, Apple and Amazon, however, cooled market enthusiasm overnight and then Friday morning’s much stronger-than-expected jobs report renewed concerns of continued Fed vigiliance, sending all 3 major stock market indexes lower on the day. While the indexes all closed lower Friday, the Nasdaq Composite and S&P 500 Indexes still registered gains on the week. 10-year Treasury rates, down almost 11bps through Thursday, reversed course Friday, jumping 12bps and leaving the 10-year Treasury rate 1bp higher on the week (an 11bp rise in 10-year real rates was offset by a 10bp fall in 10-year inflation expectations). The U.S. dollar behaved similarly, moving from slightly weaker through Thursday to stronger by 1% over the week. At week’s end, the S&P 500 Index increased 1.6% to 4,136.48, the Nasdaq Composite Index rose 3.3% to 12,006.96, the Dow Jones Industrial Average decreased 0.2% to 33,925.06, the 10-year U.S. Treasury rate rose 1bp to 3.52% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 1.0%.

Major stock market indexes ended the week higher with the Nasdaq Composite Index strongly outperforming both the S&P 500 Index and the Dow Jones Industrial Average. Markets moved higher Monday on growing expectations the Fed would tighten by 25bps this week, acting as a prelude to less aggressive Fed monetary policy and perhaps easing later this year. Indexes remained range bound Tuesday and Wednesday but moved higher Thursday following the first estimate Q4 GDP release. Though the headline number was better than expected, the increase was driven by a build in business inventories but offset by increasing-but-slowing consumer spending and business investment. Durable Goods Orders and New Home Sales (also released Thursday), however, came in stronger than expected. Nonetheless, indexes again moved higher on expectations of easing Fed monetary policy. Friday’s PCE price index released showed a YoY increase of 4.4% and 0.1 MoM, less than expected, but the core PCE Price Index registered a 0.3% MoM increase adding to uncertainty regarding future Fed policy. Stock indexes increased Friday, perhaps bolstered by lower-than-expected household spending (part of the personal income and expenditures report) but closed well off intraday highs. The 10-year Treasury rate moved 3bps higher with an 8bps increase in 10-year inflation expectation offset by a 5bp decline in 10-year real rates. (10-year real rates fell to 1.19% while 10- year inflation expectation increased to 2.32%). At week’s end, the S&P 500 Index gained 2.5% to close at 4,070.56, the Nasdaq Composite Index jumped 4.3% to 11,621.71, the Dow Jones Industrial Average increased 1.8% to 33,976.08 the 10-year U.S. Treasury rate rose 3bps to 3.51% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.1%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 27 January 2023

31 January, 2023 | GraniteShares
Major stock market indexes ended the week higher with the Nasdaq Composite Index strongly outperforming both the S&P 500 Index and the Dow Jones Industrial Average. Markets moved higher Monday on growing expectations the Fed would tighten by 25bps this week, acting as a prelude to less aggressive Fed monetary policy and perhaps easing later this year. Indexes remained range bound Tuesday and Wednesday but moved higher Thursday following the first estimate Q4 GDP release. Though the headline number was better than expected, the increase was driven by a build in business inventories but offset by increasing-but-slowing consumer spending and business investment. Durable Goods Orders and New Home Sales (also released Thursday), however, came in stronger than expected. Nonetheless, indexes again moved higher on expectations of easing Fed monetary policy. Friday’s PCE price index released showed a YoY increase of 4.4% and 0.1 MoM, less than expected, but the core PCE Price Index registered a 0.3% MoM increase adding to uncertainty regarding future Fed policy. Stock indexes increased Friday, perhaps bolstered by lower-than-expected household spending (part of the personal income and expenditures report) but closed well off intraday highs. The 10-year Treasury rate moved 3bps higher with an 8bps increase in 10-year inflation expectation offset by a 5bp decline in 10-year real rates. (10-year real rates fell to 1.19% while 10- year inflation expectation increased to 2.32%). At week’s end, the S&P 500 Index gained 2.5% to close at 4,070.56, the Nasdaq Composite Index jumped 4.3% to 11,621.71, the Dow Jones Industrial Average increased 1.8% to 33,976.08 the 10-year U.S. Treasury rate rose 3bps to 3.51% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.1%.

A mixed week for major stock market indexes with the Nasdaq Composite index strongly outperforming both the Dow Jones Industrial Average and the S&P 500 Index. Increased recession fears prompted by some prominent weaker-than-expected earnings report (e.g., Goldman Sachs, Travelers), extremely weak Chinese GDP growth, hawkish Fed officials’ comments, an unexpected drop in retail sales and a lower-than-expected PPI (interpreted as an indication of weak business activity) pushed all 3 major indexes more than 2% lower through Thursday. Google’s layoff announcement and Netflix’s surprise beat moved stock prices higher Friday perhaps assisted by investor “oversold” sentiment. The 10-year Treasury rate, belying its intraweek volatility (rates fell sharply Wednesday on the back of the retail sales and PPI releases), was almost unchanged with a less than 10bp decline in 10-year real rates offset almost entirely by a rise in 10-year inflation expectations. At week’s end, the S&P 500 Index finished 0.7 lower to close at 3,972.61 the Nasdaq Composite Index gained 0.6% to 11,140.43, the Dow Jones Industrial Average fell 2.7% to 33,375.49 the 10-year U.S. Treasury rate fell 2bps to 3.48% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.2%.

Topic: Telecoms , Financials , Basic Materials , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 20 January 2023

23 January, 2023 | GraniteShares
A mixed week for major stock market indexes with the Nasdaq Composite index strongly outperforming both the Dow Jones Industrial Average and the S&P 500 Index. Increased recession fears prompted by some prominent weaker-than-expected earnings report (e.g., Goldman Sachs, Travelers), extremely weak Chinese GDP growth, hawkish Fed officials’ comments, an unexpected drop in retail sales and a lower-than-expected PPI (interpreted as an indication of weak business activity) pushed all 3 major indexes more than 2% lower through Thursday. Google’s layoff announcement and Netflix’s surprise beat moved stock prices higher Friday perhaps assisted by investor “oversold” sentiment. The 10-year Treasury rate, belying its intraweek volatility (rates fell sharply Wednesday on the back of the retail sales and PPI releases), was almost unchanged with a less than 10bp decline in 10-year real rates offset almost entirely by a rise in 10-year inflation expectations. At week’s end, the S&P 500 Index finished 0.7 lower to close at 3,972.61 the Nasdaq Composite Index gained 0.6% to 11,140.43, the Dow Jones Industrial Average fell 2.7% to 33,375.49 the 10-year U.S. Treasury rate fell 2bps to 3.48% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.2%.

Stock markets moved higher last week propelled by growing expectations of peak and falling inflation and, as a result, a significant easing of Fed monetary policy. All 3 major stock indexes rose prior to Thursday’s CPI release, all but ignoring Fed Chair Jerome Powell’s (and other Fed officials’) hawkish comments reminding the market that the Fed would sacrifice growth over inflation. Thursday’s slightly better-than-expected CPI release showed YoY headline and core inflation fell to 6.5% and 6.1%, respectively (MoM headline CPI actually decreased 0.1%). And while the Fed has warned the Fed funds rate will remain high for a while, expectations of the Fed lowering rates before year end have grown. Better-than-expected bank earnings reports (from JP Morgan and Bank of America) helped move stock prices higher Friday as well. While the U.S. dollar significantly weakened last week, the 10-year Treasury rate only moved slightly lower. 10-year Treasury rates fell 6bps with 10-year real rates dropping 18bps and 10-year inflation expectation increasing 12bps. At week’s end, the S&P 500 Index rose 2.7% to 3,999.09, the Nasdaq Composite Index increased 4.8% to 11,079.16, the Dow Jones Industrial Average gained 2.0% to close at 34,302.81, the 10-year U.S. Treasury rate fell 6bps to 3.50% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 1.7%.

Topic: Telecoms , Financials , Basic Materials , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 13 January 2023

17 January, 2023 | GraniteShares
Stock markets moved higher last week propelled by growing expectations of peak and falling inflation and, as a result, a significant easing of Fed monetary policy. All 3 major stock indexes rose prior to Thursday’s CPI release, all but ignoring Fed Chair Jerome Powell’s (and other Fed officials’) hawkish comments reminding the market that the Fed would sacrifice growth over inflation. Thursday’s slightly better-than-expected CPI release showed YoY headline and core inflation fell to 6.5% and 6.1%, respectively (MoM headline CPI actually decreased 0.1%). And while the Fed has warned the Fed funds rate will remain high for a while, expectations of the Fed lowering rates before year end have grown. Better-than-expected bank earnings reports (from JP Morgan and Bank of America) helped move stock prices higher Friday as well. While the U.S. dollar significantly weakened last week, the 10-year Treasury rate only moved slightly lower. 10-year Treasury rates fell 6bps with 10-year real rates dropping 18bps and 10-year inflation expectation increasing 12bps. At week’s end, the S&P 500 Index rose 2.7% to 3,999.09, the Nasdaq Composite Index increased 4.8% to 11,079.16, the Dow Jones Industrial Average gained 2.0% to close at 34,302.81, the 10-year U.S. Treasury rate fell 6bps to 3.50% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 1.7%.

Stock prices trended lower through Thursday with concerns of continued aggressive Fed monetary policy for the most part controlling investor and market sentiment. Lower-than-expected initial jobless claims and a strong ADP release overrode weak Manufacturing PMI and ISM Mfg Index releases (following the “good news is bad news” paradigm), pressuring all three major stock market indexes lower through Thursday. That all changed, however, following Friday’s job report which showed significantly reduced wage pressures and after a weaker-than-expected ISM Services Index release. While the jobs report showed the number of jobs added declined from the previous month (and that the previous month’s increase was revised lower), it was the slowdown in hourly wages that caught the market’s attention. That slowdown, along with the weak ISM Services Index number, increased investor expectations of a less-aggressive Fed spurring a sharp stock market rally. In concert with those expectations, the 10-year U.S. Treasury rate, lower 15bps through Thursday, fell another 17bps Friday. At week’s end, the S&P 500 Index rose 1.4% to 3,895.08, the Nasdaq Composite Index increased 1.0% to 10,569.29, the Dow Jones Industrial Average gained 1.5% to close at 33,629.79, the 10-year U.S. Treasury rate fell 32bps to 3.56% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.4%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 06 January 2023

10 January, 2023 | GraniteShares
Stock prices trended lower through Thursday with concerns of continued aggressive Fed monetary policy for the most part controlling investor and market sentiment. Lower-than-expected initial jobless claims and a strong ADP release overrode weak Manufacturing PMI and ISM Mfg Index releases (following the “good news is bad news” paradigm), pressuring all three major stock market indexes lower through Thursday. That all changed, however, following Friday’s job report which showed significantly reduced wage pressures and after a weaker-than-expected ISM Services Index release. While the jobs report showed the number of jobs added declined from the previous month (and that the previous month’s increase was revised lower), it was the slowdown in hourly wages that caught the market’s attention. That slowdown, along with the weak ISM Services Index number, increased investor expectations of a less-aggressive Fed spurring a sharp stock market rally. In concert with those expectations, the 10-year U.S. Treasury rate, lower 15bps through Thursday, fell another 17bps Friday. At week’s end, the S&P 500 Index rose 1.4% to 3,895.08, the Nasdaq Composite Index increased 1.0% to 10,569.29, the Dow Jones Industrial Average gained 1.5% to close at 33,629.79, the 10-year U.S. Treasury rate fell 32bps to 3.56% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) strengthened 0.4%.

Stock markets moved marginally lower last week belying a relatively volatile week. Lighter, holiday-related trading volumes seemingly brought about decent sized daily moves in all 3 major stock market indexes despite a dearth of market-moving news. Uncertainty surrounding China’s easing Covid curbs in the face of surging cases seemed to be the major influence on market sentiment last week. The 10-year Treasury rate rose 14bps to 3.88% last week with increasing real rates and inflations expectations contributing equally. 10-year inflation expectations closed the year at 2.30%. For the year, the S&P 500 Index fell 19.4%, the Nasdaq Composite Index dropped 33.1% and the Dow Jones Industrial average gave up 8.8%. At week’s end, the S&P 500 Index decreased 0.1% to 3,839.5, the Nasdaq Composite Index decreased 0.3% to 10,466.48, the Dow Jones Industrial Average decreased 0.2% to 33.147.28, the 10-year U.S. Treasury rate rose 13bps to 3.88% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.8%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 30 December 2022

04 January, 2023 | GraniteShares
Stock markets moved marginally lower last week belying a relatively volatile week. Lighter, holiday-related trading volumes seemingly brought about decent sized daily moves in all 3 major stock market indexes despite a dearth of market-moving news. Uncertainty surrounding China’s easing Covid curbs in the face of surging cases seemed to be the major influence on market sentiment last week. The 10-year Treasury rate rose 14bps to 3.88% last week with increasing real rates and inflations expectations contributing equally. 10-year inflation expectations closed the year at 2.30%. For the year, the S&P 500 Index fell 19.4%, the Nasdaq Composite Index dropped 33.1% and the Dow Jones Industrial average gave up 8.8%. At week’s end, the S&P 500 Index decreased 0.1% to 3,839.5, the Nasdaq Composite Index decreased 0.3% to 10,466.48, the Dow Jones Industrial Average decreased 0.2% to 33.147.28, the 10-year U.S. Treasury rate rose 13bps to 3.88% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.8%.

Marked divergence in the weekly performance of the 3 major stock market indexes last week. The NASDAQ Composite Index strongly underperformed both the S&P 500 Index and the Dow Jones Industrial Average while the S&P 500 noticeably lagged the Dow Jones Industrial Average. Index levels were buffeted during the week by uncertainty regarding Fed monetary policy in the face of seemingly falling inflation but with data indicating a resilient job market and optimistic consumer. Stock markets fell sharply Monday, reacting to a weak retail sales release (a departure from the “bad news is good news” regime), rising Chinese Covid cases and growing recession concerns. Index levels surged Wednesday with a strong Consumer Confidence number, a much better-thanexpected Nike earning report and falling existing homes sales and prices, only to see those gains reversed Thursday on a revised-higher Q3 GDP release and continued low initial jobless claims. Friday’s PCE Price Index release moved stock prices higher with inflation levels coming in both lower than expected and lower than the previous month. Nonetheless, stock price gains were somewhat muted with prices for services continuing to show strong increases, supporting expectations of unchanged Fed monetary policy. The 10-year Treasury rate rose 26bps last with 60% of the increase coming from rising 10-year real rates. 10-year real rates now stand at 1.52% and 10-year inflation expectations at 2.23%. The U.S. dollar continued to be volatile, falling sharply on Tuesday (following the BoJ’s decision to widen the interest range on the 10-year note to +/- 50bps from +/- 25bps) and then strengthening the remainder of the week. At week’s end, the S&P 500 Index decreased 0.2% to 3,844.82, the Nasdaq Composite Index dropped 1.9% to 10,497.86, the Dow Jones Industrial Average gained 0.9% to close at 33.204.26, the 10-year U.S. Treasury rate rose 26bps to 3.75% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.4%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 23 December 2022

29 December, 2022 | GraniteShares
Marked divergence in the weekly performance of the 3 major stock market indexes last week. The NASDAQ Composite Index strongly underperformed both the S&P 500 Index and the Dow Jones Industrial Average while the S&P 500 noticeably lagged the Dow Jones Industrial Average. Index levels were buffeted during the week by uncertainty regarding Fed monetary policy in the face of seemingly falling inflation but with data indicating a resilient job market and optimistic consumer. Stock markets fell sharply Monday, reacting to a weak retail sales release (a departure from the “bad news is good news” regime), rising Chinese Covid cases and growing recession concerns. Index levels surged Wednesday with a strong Consumer Confidence number, a much better-thanexpected Nike earning report and falling existing homes sales and prices, only to see those gains reversed Thursday on a revised-higher Q3 GDP release and continued low initial jobless claims. Friday’s PCE Price Index release moved stock prices higher with inflation levels coming in both lower than expected and lower than the previous month. Nonetheless, stock price gains were somewhat muted with prices for services continuing to show strong increases, supporting expectations of unchanged Fed monetary policy. The 10-year Treasury rate rose 26bps last with 60% of the increase coming from rising 10-year real rates. 10-year real rates now stand at 1.52% and 10-year inflation expectations at 2.23%. The U.S. dollar continued to be volatile, falling sharply on Tuesday (following the BoJ’s decision to widen the interest range on the 10-year note to +/- 50bps from +/- 25bps) and then strengthening the remainder of the week. At week’s end, the S&P 500 Index decreased 0.2% to 3,844.82, the Nasdaq Composite Index dropped 1.9% to 10,497.86, the Dow Jones Industrial Average gained 0.9% to close at 33.204.26, the 10-year U.S. Treasury rate rose 26bps to 3.75% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.4%.

A tale of two halves last week, separated and distinguished by the FOMC announcement half-time show. All 3 major stock market indexes moved higher nearly 2% or more through Tuesday, powered at first by anticipation of slowing inflation (Monday) and then by its confirmation with a lower(better)-than-expected CPI release (Tuesday). Interestingly, sharp gains Tuesday morning were mostly erased by the close as growing earnings/recession concerns replaced inflation concerns. As expected, the FOMC announced a 50bp rate increase (following 4 previous rates increases of 75bps) but Fed Chair Powell’s hawkish comments following the announcement largely offset any positive effects from the smaller increase. Powell stressed the battle to reduce inflation was far from over with the FOMC forecasting rates increases of another 75bps or more in 2023 but strongly caveating that forecast could change and that final effects of current and combined increases on unemployment and economic growth were, in essence, unknowable. Stock prices moved moderately lower Wednesday but then powered lower Thursday and Friday with recession and higher unemployment expectations increasing in the face of continued aggressive Fed monetary policy. The 10-year Treasury, slightly higher on Monday, moved lower the remainder of the week with falling 10-year inflation expectations. The U.S. dollar had a volatile week, weakening markedly through Wednesday and then strengthening the remainder of the week. At week’s end, the S&P 500 Index decreased 2.1% to 3,852.36, the Nasdaq Composite Index dropped 2.7% to 10,705.41, the Dow Jones Industrial Average lost 1.7% to close at 32,920.00, the 10-year U.S. Treasury rate fell 10bps to 3.49% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) was unchanged.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 16 December 2022

19 December, 2022 | GraniteShares
A tale of two halves last week, separated and distinguished by the FOMC announcement half-time show. All 3 major stock market indexes moved higher nearly 2% or more through Tuesday, powered at first by anticipation of slowing inflation (Monday) and then by its confirmation with a lower(better)-than-expected CPI release (Tuesday). Interestingly, sharp gains Tuesday morning were mostly erased by the close as growing earnings/recession concerns replaced inflation concerns. As expected, the FOMC announced a 50bp rate increase (following 4 previous rates increases of 75bps) but Fed Chair Powell’s hawkish comments following the announcement largely offset any positive effects from the smaller increase. Powell stressed the battle to reduce inflation was far from over with the FOMC forecasting rates increases of another 75bps or more in 2023 but strongly caveating that forecast could change and that final effects of current and combined increases on unemployment and economic growth were, in essence, unknowable. Stock prices moved moderately lower Wednesday but then powered lower Thursday and Friday with recession and higher unemployment expectations increasing in the face of continued aggressive Fed monetary policy. The 10-year Treasury, slightly higher on Monday, moved lower the remainder of the week with falling 10-year inflation expectations. The U.S. dollar had a volatile week, weakening markedly through Wednesday and then strengthening the remainder of the week. At week’s end, the S&P 500 Index decreased 2.1% to 3,852.36, the Nasdaq Composite Index dropped 2.7% to 10,705.41, the Dow Jones Industrial Average lost 1.7% to close at 32,920.00, the 10-year U.S. Treasury rate fell 10bps to 3.49% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) was unchanged.

A down week for major stock indexes, reversing some of last month’s strong gains. Investor trepidation in front of this week’s FOMC meeting combined with strong economic data soured investor sentiment, pushing stock prices lower. Monday’s stronger-than-expected ISM Services Index and Factory Output releases set the tone for the rest of the week, driving all 3 major stock indexes 1.5% lower or more on the day. Stock prices moved higher Thursday on no news only to see those gains reversed by a higher-than-expected PPI release Friday. It was a volatile week for the 10-year Treasury rate, climbing 9bps higher Monday, falling 16bps over Tuesday and Wednesday and then adding almost 17bps over Thursday and Friday. The volatility, interestingly, was caused by fluctuations in 10-year inflation expectations and not by fluctuations in 10-year real rates. 10-year real rates gained 26bps over the week, increasing – for the most part - steadily over the week. At week’s end, the S&P 500 Index decreased 3.4% to 3,934.38, the Nasdaq Composite Index dropped 4.0% to 11,004.62, the Dow Jones Industrial Average lost 2.8% to close at 33.475.60, the 10-year U.S. Treasury rate rose 10bps to 3.59% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) appreciated 0.3%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 09 December 2022

12 December, 2022 | GraniteShares
A down week for major stock indexes, reversing some of last month’s strong gains. Investor trepidation in front of this week’s FOMC meeting combined with strong economic data soured investor sentiment, pushing stock prices lower. Monday’s stronger-than-expected ISM Services Index and Factory Output releases set the tone for the rest of the week, driving all 3 major stock indexes 1.5% lower or more on the day. Stock prices moved higher Thursday on no news only to see those gains reversed by a higher-than-expected PPI release Friday. It was a volatile week for the 10-year Treasury rate, climbing 9bps higher Monday, falling 16bps over Tuesday and Wednesday and then adding almost 17bps over Thursday and Friday. The volatility, interestingly, was caused by fluctuations in 10-year inflation expectations and not by fluctuations in 10-year real rates. 10-year real rates gained 26bps over the week, increasing – for the most part - steadily over the week. At week’s end, the S&P 500 Index decreased 3.4% to 3,934.38, the Nasdaq Composite Index dropped 4.0% to 11,004.62, the Dow Jones Industrial Average lost 2.8% to close at 33.475.60, the 10-year U.S. Treasury rate rose 10bps to 3.59% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) appreciated 0.3%.

Another positive week for stock indexes with Nasdaq Composite Index strongly outperforming the Dow Jones Industrial Average and the S&P 500 Index. Hawkish comments from Fed officials and unusual, widespread protests in China pressured stock prices lower Monday as investors waited for Friday’s job report, Thursday’s PCE price index release and Wednesday’s Jerome Powell speech. Basically unchanged Tuesday, all 3 major stock indexes moved sharply higher Wednesday following Fed Chair Powell’s comments at the Brookings Institution. Powell intimated December’s rate increase would likely be 50bps and, while the Fed would continue to act vigilantly against inflation, the pace of rate increases would likely slow. Thursday’s lower-than-expected core PCE price index release seemed to support investor expectations of a less aggressive Fed going forward and, at the same time, lessened downward stock price pressures resulting from Friday’s strong job report. The 10-year Treasury rate, reacting to growing expectations of more benign Fed monetary policy, fell 20bps. Interestingly, 10- year inflation expectations increased 11bps over the week slightly offsetting a 31bp decline in 10-year real rates. Similarly, the U.S. dollar significantly weakened. For the week, the S&P 500 Index increased 1.1% to 4,071.70, the Nasdaq Composite Index rose 2.1% to 11,461.50, the Dow Jones Industrial Average increased 0.2% to 34.428.95, the 10-year U.S. Treasury rate dropped 20bps to 3.49% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 1.5%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 02 December 2022

06 December, 2022 | GraniteShares
Another positive week for stock indexes with Nasdaq Composite Index strongly outperforming the Dow Jones Industrial Average and the S&P 500 Index. Hawkish comments from Fed officials and unusual, widespread protests in China pressured stock prices lower Monday as investors waited for Friday’s job report, Thursday’s PCE price index release and Wednesday’s Jerome Powell speech. Basically unchanged Tuesday, all 3 major stock indexes moved sharply higher Wednesday following Fed Chair Powell’s comments at the Brookings Institution. Powell intimated December’s rate increase would likely be 50bps and, while the Fed would continue to act vigilantly against inflation, the pace of rate increases would likely slow. Thursday’s lower-than-expected core PCE price index release seemed to support investor expectations of a less aggressive Fed going forward and, at the same time, lessened downward stock price pressures resulting from Friday’s strong job report. The 10-year Treasury rate, reacting to growing expectations of more benign Fed monetary policy, fell 20bps. Interestingly, 10- year inflation expectations increased 11bps over the week slightly offsetting a 31bp decline in 10-year real rates. Similarly, the U.S. dollar significantly weakened. For the week, the S&P 500 Index increased 1.1% to 4,071.70, the Nasdaq Composite Index rose 2.1% to 11,461.50, the Dow Jones Industrial Average increased 0.2% to 34.428.95, the 10-year U.S. Treasury rate dropped 20bps to 3.49% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 1.5%.

An up-week for major stock indexes with the Dow Jones industrial Average outperforming both the Nasdaq Composite and SP 500 Indexes. Growing expectations of a more benign Fed provided support to stock prices with a growing number of investors expecting the Fed to slow its pace of rate increases beginning December when the FOMC meets next. Wednesday’s release of FOMC minutes helped firm those expectation with most members expressing the view smaller increases in rates may be appropriate. Falling but better-than-expected consumer sentiment and much better-than-expected new home sales also boosted positive sentiment. Friday saw the Dow Jones Industrial Average rise and the Nasdaq Composite and S&P 500 Indexes fall, perhaps as result of value stocks receiving a boost on hopes of strong black-Friday sales. The 10-year Treasury rate fell 14bps with 10-year real rates responsible for the decline, reversing last week’s gains and falling 14bps. At week’s end, the S&P 500 Index increased 1.5% to 4,026.12, the Nasdaq Composite Index gained 0.7% to close at 11,228.76, the Dow Jones Industrial Average rose 1.8% to 34,346.83, the 10-year U.S. Treasury rate dropped 14bps to 3.69% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.9%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 25 November 2022

28 November, 2022 | GraniteShares
An up-week for major stock indexes with the Dow Jones industrial Average outperforming both the Nasdaq Composite and SP 500 Indexes. Growing expectations of a more benign Fed provided support to stock prices with a growing number of investors expecting the Fed to slow its pace of rate increases beginning December when the FOMC meets next. Wednesday’s release of FOMC minutes helped firm those expectation with most members expressing the view smaller increases in rates may be appropriate. Falling but better-than-expected consumer sentiment and much better-than-expected new home sales also boosted positive sentiment. Friday saw the Dow Jones Industrial Average rise and the Nasdaq Composite and S&P 500 Indexes fall, perhaps as result of value stocks receiving a boost on hopes of strong black-Friday sales. The 10-year Treasury rate fell 14bps with 10-year real rates responsible for the decline, reversing last week’s gains and falling 14bps. At week’s end, the S&P 500 Index increased 1.5% to 4,026.12, the Nasdaq Composite Index gained 0.7% to close at 11,228.76, the Dow Jones Industrial Average rose 1.8% to 34,346.83, the 10-year U.S. Treasury rate dropped 14bps to 3.69% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 0.9%.

A relatively subdued week with all 3 major stock indexes mildlyy vacillating during the week but ending slightly lower. A lower-than-expected PPI release Tuesday added to last week’s increased “peak-inflation” and “Fedpause” sentiment, buoying stock prices and mainly erasing Monday’s drawdown. Stronger-than-expected retail sales (released Wednesday) and falling initial jobless claims injected renewed doubt regarding a less aggressive Fed, pushing stock prices lower. On the flip side, Target’s weak earnings report and outlook also pressured prices lower. Hawkish comments Thursday from Fed officials – namely St. Louis Fed President Bullard – also pressured prices lower. The S&P 500 and Nasdaq Composite Indexes managed to move higher Friday, perhaps as a result of falling U.S home sales, but nonetheless finished the week in the red. The 10-year U.S. Treasury rate increased 2bps with a 16bp increase in 10-year real rates offset by a 14bp decline in 10-year inflation expectations. 10-year inflation expectation are now at a recent low of 2.25%. At week’s end, the S&P 500 Index decreased 0.7% to 3,965.34, the Nasdaq Composite Index fell 1.6% to 11,146.06, the Dow Jones Industrial Average was basically unchanged at 33,747.14, the 10-year U.S. Treasury rate increased 2bps to 3.83% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) appreciated 0.6%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 18 November 2022

21 November, 2022 | GraniteShares
A relatively subdued week with all 3 major stock indexes mildlyy vacillating during the week but ending slightly lower. A lower-than-expected PPI release Tuesday added to last week’s increased “peak-inflation” and “Fedpause” sentiment, buoying stock prices and mainly erasing Monday’s drawdown. Stronger-than-expected retail sales (released Wednesday) and falling initial jobless claims injected renewed doubt regarding a less aggressive Fed, pushing stock prices lower. On the flip side, Target’s weak earnings report and outlook also pressured prices lower. Hawkish comments Thursday from Fed officials – namely St. Louis Fed President Bullard – also pressured prices lower. The S&P 500 and Nasdaq Composite Indexes managed to move higher Friday, perhaps as a result of falling U.S home sales, but nonetheless finished the week in the red. The 10-year U.S. Treasury rate increased 2bps with a 16bp increase in 10-year real rates offset by a 14bp decline in 10-year inflation expectations. 10-year inflation expectation are now at a recent low of 2.25%. At week’s end, the S&P 500 Index decreased 0.7% to 3,965.34, the Nasdaq Composite Index fell 1.6% to 11,146.06, the Dow Jones Industrial Average was basically unchanged at 33,747.14, the 10-year U.S. Treasury rate increased 2bps to 3.83% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) appreciated 0.6%.

Major stock market indexes moved sharply higher last week, surging Thursday following the release of much better-than-expected CPI data. Up between 1.5% and 2% through Tuesday on projections mid-term elections would provide a split Congress, stock indexes fell 2% or more Wednesday on uncertainty surrounding mid-term election results and cryptocurrency-related turmoil. The liquidity crises enveloping FTX worsened severely after Binance walked away from acquiring FTX (leading to its filing for bankruptcy) and pushed bitcoin below $16,000. Indexes surged Thursday, however, reacting to a lower-than-expected core and overall CPI release. Expectations of a less aggressive Fed and a 50bp rate hike in December (down from expectations of 75bps) propelled the Nasdaq Composite Index over 7% higher Thursday (the S&P 500 Index and Dow Jones Industrial Average gained 5.5% and 3.7%, respectively) and bitcoin reversed all its Wednesday losses. Indexes continued to move higher Friday on Thursday’s momentum. The 10-year Treasury rate, only slightly lower through Wednesday, fell 29bps Thursday (bond markets were closed Friday due to Veterans Day) following better-than-expected CPI data and the U.S. dollar fared similarly, sharply weakening Thursday and Friday. At week’s end, the S&P 500 Index rose 5.9% to 3,992.93, the Nasdaq Composite Index jumped 8.1% to 11,323.22, the Dow Jones Industrial Average increased 4.1% to 33,419.18, the 10-year U.S. Treasury rate dropped 35bps to 3.81% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 4.1%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 11 November 2022

14 November, 2022 | GraniteShares
Major stock market indexes moved sharply higher last week, surging Thursday following the release of much better-than-expected CPI data. Up between 1.5% and 2% through Tuesday on projections mid-term elections would provide a split Congress, stock indexes fell 2% or more Wednesday on uncertainty surrounding mid-term election results and cryptocurrency-related turmoil. The liquidity crises enveloping FTX worsened severely after Binance walked away from acquiring FTX (leading to its filing for bankruptcy) and pushed bitcoin below $16,000. Indexes surged Thursday, however, reacting to a lower-than-expected core and overall CPI release. Expectations of a less aggressive Fed and a 50bp rate hike in December (down from expectations of 75bps) propelled the Nasdaq Composite Index over 7% higher Thursday (the S&P 500 Index and Dow Jones Industrial Average gained 5.5% and 3.7%, respectively) and bitcoin reversed all its Wednesday losses. Indexes continued to move higher Friday on Thursday’s momentum. The 10-year Treasury rate, only slightly lower through Wednesday, fell 29bps Thursday (bond markets were closed Friday due to Veterans Day) following better-than-expected CPI data and the U.S. dollar fared similarly, sharply weakening Thursday and Friday. At week’s end, the S&P 500 Index rose 5.9% to 3,992.93, the Nasdaq Composite Index jumped 8.1% to 11,323.22, the Dow Jones Industrial Average increased 4.1% to 33,419.18, the 10-year U.S. Treasury rate dropped 35bps to 3.81% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) weakened 4.1%.

Earning season is the time of the year when publicly traded companies release their quarterly or annual earnings by the end of each quarter. These reports by the companies include information about the earnings, revenue and expenses. Earnings reports give investors access to the company’s actual performance from the previous three months. There are rules regarding the deadlines by which the companies need to file and report their earnings. Companies can schedule the release on a day that benefits them.

Topic: Financials , Industrials , Technology

Publication Type: Investment Cases , Articles

Everything you need to know about Earnings Season

10 November, 2022 | GraniteShares
Earning season is the time of the year when publicly traded companies release their quarterly or annual earnings by the end of each quarter. These reports by the companies include information about the earnings, revenue and expenses. Earnings reports give investors access to the company’s actual performance from the previous three months. There are rules regarding the deadlines by which the companies need to file and report their earnings. Companies can schedule the release on a day that benefits them.

Major stock market indexes fell last week as investors waited apprehensively for Wednesday’s FOMC rate decision and Friday’s employment report with concerns of an ever-aggressive Fed pushing stock prices lower every single day last week except for Friday. Wednesday’s as-expected FOMC decision raising rates 75bs initially drove stock markets higher as FOMC announcement language appeared to suggest the Fed was likely to adopt a slower pace of increases to discern and examine the effects of its previous rate hikes. Hopes of a “Fed pivot”, however, were severely diminished following Fed Chair Jerome Powell’s comments at his press conference held shortly after the rate hike announcement. Powell’s comments that the Fed had “a ways to go” before pausing rate hikes reversed index gains to sharp losses with the Nasdaq Composite Index faring the worst, finishing Wednesday down 3.4%. Stock markets continued lower Thursday, further processing Wednesday’s events and perhaps also affected by the BoE decision to raise rate 75bps. Friday’s employment report showing larger-than-expected gains in jobs but a higher-than-expected unemployment rate left markets somewhat uncertain with stock indexes fluctuating between losses and gains before finally ending higher on the day, the only up-day of the week. At week’s end, the S&P 500 Index fell 3.3% to 3,770.55, the Nasdaq Composite Index increased dropped 5.6% to 10,465.25, the Dow Jones Industrial Average decreased 1.4% to 32,404.80, the 10-year U.S. Treasury rate rose 15bps to 4.16% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) was practically unchanged

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 04 November 2022

08 November, 2022 | GraniteShares
Major stock market indexes fell last week as investors waited apprehensively for Wednesday’s FOMC rate decision and Friday’s employment report with concerns of an ever-aggressive Fed pushing stock prices lower every single day last week except for Friday. Wednesday’s as-expected FOMC decision raising rates 75bs initially drove stock markets higher as FOMC announcement language appeared to suggest the Fed was likely to adopt a slower pace of increases to discern and examine the effects of its previous rate hikes. Hopes of a “Fed pivot”, however, were severely diminished following Fed Chair Jerome Powell’s comments at his press conference held shortly after the rate hike announcement. Powell’s comments that the Fed had “a ways to go” before pausing rate hikes reversed index gains to sharp losses with the Nasdaq Composite Index faring the worst, finishing Wednesday down 3.4%. Stock markets continued lower Thursday, further processing Wednesday’s events and perhaps also affected by the BoE decision to raise rate 75bps. Friday’s employment report showing larger-than-expected gains in jobs but a higher-than-expected unemployment rate left markets somewhat uncertain with stock indexes fluctuating between losses and gains before finally ending higher on the day, the only up-day of the week. At week’s end, the S&P 500 Index fell 3.3% to 3,770.55, the Nasdaq Composite Index increased dropped 5.6% to 10,465.25, the Dow Jones Industrial Average decreased 1.4% to 32,404.80, the 10-year U.S. Treasury rate rose 15bps to 4.16% and the U.S. dollar (as measured by the ICE U.S. Dollar index – DXY) was practically unchanged

Stock indexes moved sharply higher last week, led by the Dow Jones Industrial Average. Growing expectations ofthe Fed slowing its pace of rate hikes and better-than-expected earnings reports from banks and airlines pushed all3 major indexes up by at least 2.5% through Tuesday. The 10-year Treasury rate, reacting to sharply lower home price growth, falling PMI index levels and hopes of a less aggressive Fed, fell 15bps Tuesday, helping the Nasdaq Composite index move 2.25% higher. Disappointing earnings reports from Google and Microsoft weakened investor sentiment driving index levels lower Wednesday. Meta’s much worse-than-expected earnings report, released after the close Wednesday, contributed to falling index levels with Meta’s share price plummeting 25%Thursday. Thursday’s seemingly better-than-expected Q3 GDP release actually revealed slowing consumer spending and a decline in residential housing investment, both signs of a slowing economy. The increase in GDP was solely attributed to a decrease in the trade deficit with analysts warning that was likely to reverse due to the U.S. dollar’s strength. As a result, 10-year Treasury yields dropped another 7bps. Indexes moved markedly higher Friday following better-than-expected earnings reports from Apple and Intel and despite disappointing results from Amazon. Friday’s YoY PCE core price index increased less than expected but higher than the previous month’s, slightly increasing expectations the Fed would maintain its pace of rate increases and driving the 10-yearTreasury yield 9bps higher. At week’s end, the S&P 500 Index rose 3.9% to 3,900.05, the Nasdaq Composite Index increased 2.2% to 11,102.45, the Dow Jones Industrial Average gained 5.7% to close at 32,861.34, the 10-year U.S.T reasury rate fell 21bps to 4.01% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened1.2%

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 28 October 2022

01 November, 2022 | GraniteShares
Stock indexes moved sharply higher last week, led by the Dow Jones Industrial Average. Growing expectations ofthe Fed slowing its pace of rate hikes and better-than-expected earnings reports from banks and airlines pushed all3 major indexes up by at least 2.5% through Tuesday. The 10-year Treasury rate, reacting to sharply lower home price growth, falling PMI index levels and hopes of a less aggressive Fed, fell 15bps Tuesday, helping the Nasdaq Composite index move 2.25% higher. Disappointing earnings reports from Google and Microsoft weakened investor sentiment driving index levels lower Wednesday. Meta’s much worse-than-expected earnings report, released after the close Wednesday, contributed to falling index levels with Meta’s share price plummeting 25%Thursday. Thursday’s seemingly better-than-expected Q3 GDP release actually revealed slowing consumer spending and a decline in residential housing investment, both signs of a slowing economy. The increase in GDP was solely attributed to a decrease in the trade deficit with analysts warning that was likely to reverse due to the U.S. dollar’s strength. As a result, 10-year Treasury yields dropped another 7bps. Indexes moved markedly higher Friday following better-than-expected earnings reports from Apple and Intel and despite disappointing results from Amazon. Friday’s YoY PCE core price index increased less than expected but higher than the previous month’s, slightly increasing expectations the Fed would maintain its pace of rate increases and driving the 10-yearTreasury yield 9bps higher. At week’s end, the S&P 500 Index rose 3.9% to 3,900.05, the Nasdaq Composite Index increased 2.2% to 11,102.45, the Dow Jones Industrial Average gained 5.7% to close at 32,861.34, the 10-year U.S.T reasury rate fell 21bps to 4.01% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened1.2%

All 3 major stock market indexes ended the week sharply higher, increasing markedly at the beginning and at the end of the week. Better-than-expected earnings reports along with the reversal of UK tax reduction/increased spending plans helped propel stock prices sharply higher through Tuesday. Re-emerging concerns of continued aggressive Fed tightening leading to recession pushed the 10-year Treasury yield above 4.20% to an almost 15-yearhigh (almost all the increase was due to rising real rates), pushing stock prices lower Wednesday and Thursday. Reports Friday the Fed may consider slowing its pace of increases following November’s FOMC meeting (when the Fed is expected to increase the Fed fund’s target rate by 75bps) along with better-than-expected earnings reports propelled the major stock indexes over 2% higher, despite the 10-year Treasury rate remaining unchanged near4.2%. At week’s end, the S&P 500 Index rose 4.7% to 3,752.15, the Nasdaq Composite Index gained 5.2% to close at 10,859.72, the Dow Jones Industrial Average increased 4.9% to 31,083.02, the 10-year U.S. Treasury rate rose19bps to 4.22% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 1.3%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 21 October 2022

25 October, 2022 | GraniteShares
All 3 major stock market indexes ended the week sharply higher, increasing markedly at the beginning and at the end of the week. Better-than-expected earnings reports along with the reversal of UK tax reduction/increased spending plans helped propel stock prices sharply higher through Tuesday. Re-emerging concerns of continued aggressive Fed tightening leading to recession pushed the 10-year Treasury yield above 4.20% to an almost 15-yearhigh (almost all the increase was due to rising real rates), pushing stock prices lower Wednesday and Thursday. Reports Friday the Fed may consider slowing its pace of increases following November’s FOMC meeting (when the Fed is expected to increase the Fed fund’s target rate by 75bps) along with better-than-expected earnings reports propelled the major stock indexes over 2% higher, despite the 10-year Treasury rate remaining unchanged near4.2%. At week’s end, the S&P 500 Index rose 4.7% to 3,752.15, the Nasdaq Composite Index gained 5.2% to close at 10,859.72, the Dow Jones Industrial Average increased 4.9% to 31,083.02, the 10-year U.S. Treasury rate rose19bps to 4.22% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 1.3%.

A volatile week with all 3 major stock indexes moving lower through Wednesday and then swinging wildly Thursday and Friday both intra- and interday. Prices moved lower early in the week as investors braced for PPIand FOMC minutes Wednesday and CPI Thursday. Russia-Ukraine war flare ups and Biden administration bans on China semi-conductor exports added to market malaise. Wednesday’s worse-than-expected PPI release and FOMC minutes expressing concerns over persistent, high levels of inflation while lamenting a strong job market seemingly had little effect on markets. Thursday’s CPI release showing core CPI increasing at a YoY rate not seen in 40 years, initially pushed stock prices sharply lower with the Dow Jones Industrial Average, for example, falling500 points. Prices, however, then drastically reversed with all 3 major indexes ending the day north of 2% higher, perhaps buoyed by the fact CPI, while higher, had moved lower versus the two prior months or perhaps in expectations of good earnings reports to be released Friday. That sentiment or expectations, if they indeed existed, changed Friday with all 3 major stock market indexes, initially strongly continuing Thursday’s move higher, suddenly U-turned to end the day markedly lower. The move lower came despite better-than-expected earnings reports from JPM Chase, Citi and Wells Fargo. The Nasdaq Composite Index, the worst performer for the week, was also the worst performer Friday, falling 3.1%. The 10-year Treasury rate moved 14bps higher last week with real rates falling 6bps to 1.55% and 10-year inflation expectations increasing 20bps to 2.47%. At week’s end, theS&P 500 Index decreased 1.6% to close at 3,583.07, the Nasdaq Composite Index dropped 3.1% to 10,321.39, the Dow Jones Industrial Average rose 1.2% to 29,634.83, the 10-year U.S. Treasury rate rose 14bps to 4.03% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.4%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 14 October 2022

18 October, 2022 | GraniteShares
A volatile week with all 3 major stock indexes moving lower through Wednesday and then swinging wildly Thursday and Friday both intra- and interday. Prices moved lower early in the week as investors braced for PPIand FOMC minutes Wednesday and CPI Thursday. Russia-Ukraine war flare ups and Biden administration bans on China semi-conductor exports added to market malaise. Wednesday’s worse-than-expected PPI release and FOMC minutes expressing concerns over persistent, high levels of inflation while lamenting a strong job market seemingly had little effect on markets. Thursday’s CPI release showing core CPI increasing at a YoY rate not seen in 40 years, initially pushed stock prices sharply lower with the Dow Jones Industrial Average, for example, falling500 points. Prices, however, then drastically reversed with all 3 major indexes ending the day north of 2% higher, perhaps buoyed by the fact CPI, while higher, had moved lower versus the two prior months or perhaps in expectations of good earnings reports to be released Friday. That sentiment or expectations, if they indeed existed, changed Friday with all 3 major stock market indexes, initially strongly continuing Thursday’s move higher, suddenly U-turned to end the day markedly lower. The move lower came despite better-than-expected earnings reports from JPM Chase, Citi and Wells Fargo. The Nasdaq Composite Index, the worst performer for the week, was also the worst performer Friday, falling 3.1%. The 10-year Treasury rate moved 14bps higher last week with real rates falling 6bps to 1.55% and 10-year inflation expectations increasing 20bps to 2.47%. At week’s end, theS&P 500 Index decreased 1.6% to close at 3,583.07, the Nasdaq Composite Index dropped 3.1% to 10,321.39, the Dow Jones Industrial Average rose 1.2% to 29,634.83, the 10-year U.S. Treasury rate rose 14bps to 4.03% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.4%.

Stock prices moved sharply higher Monday and Tuesday, with all 3 major stock market indexes rebounding off Friday’s closing levels, their lowest of the year. Investor sentiment turned positive early last week, with a weakerthan-expected ISM Manufacturing Index number and falling job openings boosting expectations of a weakening economy and, as a result, a less aggressive Fed. Those expectations faded Wednesday and Thursday following a stronger-than-expected ADP employment report, better-than-expected ISM Services Index release, hawkish comments by Fed officials and an OPEC+ decision to cut oil production by 2 million barrels per day. Friday’s job report, better than expected in many regards, sent stock indexes spiralling lower with rising expectations the Fed would continue its vigilance against inflation and tighten 75bps at the next FOMC meeting in November. Nonetheless, for the week, all 3 major indexes managed to finish higher. The 10-year Treasury rate had an upand-down week as well, falling almost 20bps to 3.64% through Tuesday only to climb higher the remainder of the week to finish at 3.89%. Similary, the U.S. dollar weakened almost 2% through Tuesday but closed the week up over ½ percent (as measured by the DXY Index). At week’s end, the S&P 500 Index rose 1.5% to close at 3,639.66, the Nasdaq Composite Index increased 0.8% to 10,662.47, the Dow Jones Industrial Average gaine 2.0% to close at 29,29.25, the 10-year U.S. Treasury rate rose 7bps to 3.89% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.6%.

Topic: Telecoms , Financials , Basic Materials , Energy , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 07 October 2022

11 October, 2022 | GraniteShares
Stock prices moved sharply higher Monday and Tuesday, with all 3 major stock market indexes rebounding off Friday’s closing levels, their lowest of the year. Investor sentiment turned positive early last week, with a weakerthan-expected ISM Manufacturing Index number and falling job openings boosting expectations of a weakening economy and, as a result, a less aggressive Fed. Those expectations faded Wednesday and Thursday following a stronger-than-expected ADP employment report, better-than-expected ISM Services Index release, hawkish comments by Fed officials and an OPEC+ decision to cut oil production by 2 million barrels per day. Friday’s job report, better than expected in many regards, sent stock indexes spiralling lower with rising expectations the Fed would continue its vigilance against inflation and tighten 75bps at the next FOMC meeting in November. Nonetheless, for the week, all 3 major indexes managed to finish higher. The 10-year Treasury rate had an upand-down week as well, falling almost 20bps to 3.64% through Tuesday only to climb higher the remainder of the week to finish at 3.89%. Similary, the U.S. dollar weakened almost 2% through Tuesday but closed the week up over ½ percent (as measured by the DXY Index). At week’s end, the S&P 500 Index rose 1.5% to close at 3,639.66, the Nasdaq Composite Index increased 0.8% to 10,662.47, the Dow Jones Industrial Average gaine 2.0% to close at 29,29.25, the 10-year U.S. Treasury rate rose 7bps to 3.89% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.6%.

Exchange-Traded Funds (ETFs) are exchange-listed consisting of a basket of securities that tracks underlying securities including stocks, bonds commodities, contracts, and currency. They are a popular form of passive investment.  

Topic: Industrials , Technology

Everything about Exchange Traded Funds (ETFs)

07 October, 2022 | GraniteShares
Exchange-Traded Funds (ETFs) are exchange-listed consisting of a basket of securities that tracks underlying securities including stocks, bonds commodities, contracts, and currency. They are a popular form of passive investment.  

Exchange-Traded Fund (ETFs) and Exchange Traded Products (ETPs) both in recent times have been exploding and gaining traction from investors. So, it seems like a good opportunity to guide the investors to make an informed decision as to which financial product suits them the best. We will be discussing some of the financial terms people are confused with if what is the differentiating factor Between ETFs and ETPs.  

Publication Type: Single stock research

ETF or ETP - what is the difference?

07 October, 2022 | GraniteShares
Exchange-Traded Fund (ETFs) and Exchange Traded Products (ETPs) both in recent times have been exploding and gaining traction from investors. So, it seems like a good opportunity to guide the investors to make an informed decision as to which financial product suits them the best. We will be discussing some of the financial terms people are confused with if what is the differentiating factor Between ETFs and ETPs.  

All 3 major stock indexes moved lower again last week falling between 2.5% and 3% ending lower on the week, month and quarter. Persistent hawkish comments by Fed and other central bank officials combined with stubbornly high levels of inflation in Europe and the U.S. increased fears of a central bank-induced global recession dragging stock and bond prices lower. Sharply higher U.K government bond yields and a plunging British pound (versus the U.S. dollar) precipitated by the UK government’s plans to increase spending while at the same time reducing taxes dragged U.S. markets lower as investors grappled with the possibility of a UK financial crisis. Wednesday’s intervention by the BoE saying they would buy gilts no matter the amount, moved UK government bond yields lower and strengthened the British pound and, in the process, propelled US stock markets markedly higher. US stock indexes, however, fell over the remainder of the week with investors re-focusing on recession concerns. Weaker-than-expected durable goods orders and data showing home prices increasing at a sharply lower rate seemingly substantiated slowing growth while a slightly higher-than-expected core PCE Index release and lower-than-expected jobless claims supported the case for continued aggressive Fed tightening. The 10-year U.S. Treasury rate rose 14bps over the week but with falling 10-year inflation expectations. 10-year inflation expectation fell 11bps to 2.26% while 10-year real rates rose 25bps to 1.57%. The U.S. dollar moved off its recent highs with the DXY Index falling just under 1%. At week’s end, the S&P 500 Index lost 2.9% to close at 3,585.62, the Nasdaq Composite Index fell 2.7% to 10,575.62, the Dow Jones Industrial Average dropped 2.9% to 28,730.12, the 10-year U.S. Treasury rate rose 14bps to 3.82% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.9%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 30 September 2022

04 October, 2022 | GraniteShares
All 3 major stock indexes moved lower again last week falling between 2.5% and 3% ending lower on the week, month and quarter. Persistent hawkish comments by Fed and other central bank officials combined with stubbornly high levels of inflation in Europe and the U.S. increased fears of a central bank-induced global recession dragging stock and bond prices lower. Sharply higher U.K government bond yields and a plunging British pound (versus the U.S. dollar) precipitated by the UK government’s plans to increase spending while at the same time reducing taxes dragged U.S. markets lower as investors grappled with the possibility of a UK financial crisis. Wednesday’s intervention by the BoE saying they would buy gilts no matter the amount, moved UK government bond yields lower and strengthened the British pound and, in the process, propelled US stock markets markedly higher. US stock indexes, however, fell over the remainder of the week with investors re-focusing on recession concerns. Weaker-than-expected durable goods orders and data showing home prices increasing at a sharply lower rate seemingly substantiated slowing growth while a slightly higher-than-expected core PCE Index release and lower-than-expected jobless claims supported the case for continued aggressive Fed tightening. The 10-year U.S. Treasury rate rose 14bps over the week but with falling 10-year inflation expectations. 10-year inflation expectation fell 11bps to 2.26% while 10-year real rates rose 25bps to 1.57%. The U.S. dollar moved off its recent highs with the DXY Index falling just under 1%. At week’s end, the S&P 500 Index lost 2.9% to close at 3,585.62, the Nasdaq Composite Index fell 2.7% to 10,575.62, the Dow Jones Industrial Average dropped 2.9% to 28,730.12, the 10-year U.S. Treasury rate rose 14bps to 3.82% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.9%.

Stock markets fell sharply last week with all 3 major indexes falling 4% or more. Prices fell every day last week except Monday with the FOMC’s decision to raise rates 75bps Wednesday and Fed Chairman Powell’s subsequent comments weighing heavily on market sentiment. The as-expected 75bp rate hike Wednesday was overshadowed by Chairman Powell’s statements rate rises would continue, the labour market would likely soften and the chances of a soft landing were increasingly less likely. Reflecting this sentiment, the 10-year U.S. Treasury rate rose 23bps – to its highest level in over 20 years – with the entire increase due to rising real rates and the U.S. dollar (as measured by the DXY index) strengthened 3%. At week’s end, the S&P 500 Index lost 4.7% to close at 3,693.23, the Nasdaq Composite Index fell 5.1% to 10,867.93, the Dow Jones Industrial Average dropped 4.0% to 29,592.85, the 10-year U.S. Treasury rate rose 23bps to 3.68% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 3%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 23 September 2022

27 September, 2022 | GraniteShares
Stock markets fell sharply last week with all 3 major indexes falling 4% or more. Prices fell every day last week except Monday with the FOMC’s decision to raise rates 75bps Wednesday and Fed Chairman Powell’s subsequent comments weighing heavily on market sentiment. The as-expected 75bp rate hike Wednesday was overshadowed by Chairman Powell’s statements rate rises would continue, the labour market would likely soften and the chances of a soft landing were increasingly less likely. Reflecting this sentiment, the 10-year U.S. Treasury rate rose 23bps – to its highest level in over 20 years – with the entire increase due to rising real rates and the U.S. dollar (as measured by the DXY index) strengthened 3%. At week’s end, the S&P 500 Index lost 4.7% to close at 3,693.23, the Nasdaq Composite Index fell 5.1% to 10,867.93, the Dow Jones Industrial Average dropped 4.0% to 29,592.85, the 10-year U.S. Treasury rate rose 23bps to 3.68% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 3%.

All three major stock indexes fell sharply last week with the lion’s share of the move lower occurring Tuesday following a much worse-than-expected CPI release. Increasing Monday on hopes of a favourable CPI release, stock prices nosedived Tuesday after Tuesday’s CPI release showed higher-than-expected inflation levels overall and sharply higher increase in core prices (ie, prices excluding food and energy). The Nasdaq Composite index was the loss leader, falling south of 5% Tuesday, with the S&P 500 Index and Dow Jones Industrial Average losing around 4%. The sharp decline in index levels came as concerns of the magnitude of rate hikes increased with growing expectations the Fed would increase the Fed funds target rate by a minimum of 75bps in this week’s FOMC meeting. Stock markets edged higher Wednesday only to continue to their move lower Thursday and Friday following a weaker-than-expected FedEx earnings report and warnings of layoffs by Goldman Sachs and office closures by FedEx. The 10-year Treasury rate continued its climb higher, increasing 14bps on the week powered by rising 10-year real rates (up 19bps). 10-year inflation expectations fell slightly, decreasing 5bps to 2.37%. For the week, the S&P 500 Index lost 4.8% to close at 3,873.33, the Nasdaq Composite Index fell 5.5% to 11,448.40, the Dow Jones Industrial Average dropped 4.1% to 30,821.50, the 10-year U.S. Treasury rate rose 14bps to 3.45% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.6%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 16 September 2022

19 September, 2022 | GraniteShares
All three major stock indexes fell sharply last week with the lion’s share of the move lower occurring Tuesday following a much worse-than-expected CPI release. Increasing Monday on hopes of a favourable CPI release, stock prices nosedived Tuesday after Tuesday’s CPI release showed higher-than-expected inflation levels overall and sharply higher increase in core prices (ie, prices excluding food and energy). The Nasdaq Composite index was the loss leader, falling south of 5% Tuesday, with the S&P 500 Index and Dow Jones Industrial Average losing around 4%. The sharp decline in index levels came as concerns of the magnitude of rate hikes increased with growing expectations the Fed would increase the Fed funds target rate by a minimum of 75bps in this week’s FOMC meeting. Stock markets edged higher Wednesday only to continue to their move lower Thursday and Friday following a weaker-than-expected FedEx earnings report and warnings of layoffs by Goldman Sachs and office closures by FedEx. The 10-year Treasury rate continued its climb higher, increasing 14bps on the week powered by rising 10-year real rates (up 19bps). 10-year inflation expectations fell slightly, decreasing 5bps to 2.37%. For the week, the S&P 500 Index lost 4.8% to close at 3,873.33, the Nasdaq Composite Index fell 5.5% to 11,448.40, the Dow Jones Industrial Average dropped 4.1% to 30,821.50, the 10-year U.S. Treasury rate rose 14bps to 3.45% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.6%.

After 3 weeks of declines, stock indexes moved higher last week. The move higher occurred despite continued strong, inflation-fighting language from Fed Chairman Powell Thursday and a 75bp hike by the ECB Wednesday. Stronger-than-expected earnings reports combined with another week of decreasing jobless claims and a betterthan-expected ISM Services PMI seemed to bolster investor sentiment in the face of recession/slowing growth concerns. The 10-year Treasury continued its move higher, increasing 12bps with 10-year real rates rising 14bps and 10-year inflation expectations falling 2bps. For the week, the S&P 500 Index gained 3.7% to close at 4,067.36, the Nasdaq Composite Index climbed 4.1% to 12,112.31, the Dow Jones Industrial Average rose 2.7% to 32,151.71, the 10-year U.S. Treasury rate rose 12bps to 3.31% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.6%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 09 September 2022

13 September, 2022 | GraniteShares
After 3 weeks of declines, stock indexes moved higher last week. The move higher occurred despite continued strong, inflation-fighting language from Fed Chairman Powell Thursday and a 75bp hike by the ECB Wednesday. Stronger-than-expected earnings reports combined with another week of decreasing jobless claims and a betterthan-expected ISM Services PMI seemed to bolster investor sentiment in the face of recession/slowing growth concerns. The 10-year Treasury continued its move higher, increasing 12bps with 10-year real rates rising 14bps and 10-year inflation expectations falling 2bps. For the week, the S&P 500 Index gained 3.7% to close at 4,067.36, the Nasdaq Composite Index climbed 4.1% to 12,112.31, the Dow Jones Industrial Average rose 2.7% to 32,151.71, the 10-year U.S. Treasury rate rose 12bps to 3.31% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.6%.

Stock markets declined again last week, continuing their trend lower following Fed Chairman Jerome Powell’s Jackson Hole comments the previous Friday. Indications of a resilient economy, including a better-than-expected ISM Manufacturing PMI and lower-than-expected jobless claims, added to sentiment the Fed would likely continue its aggressive tightening policies. Friday’s Employment Report showing as-expected job gains but lower-thanexpected wage increases and a higher-than-expected unemployment rate, initially moved stock prices higher on hopes the report would give the Fed room to be less aggressive. Those hopes faded throughout the day, however, with all 3 major stock market indexes moving lower on the day. The 10-year Treasury rate, reflecting higher-rate expectations, rose 16bps over the week with 10-year real rates rising 26bps and 10-year inflation expectations falling 10bps. The U.S. dollar, also reflecting higher-rate expectations, strengthened ¾ percent. For the week, the S&P 500 Index fell 3.3% to 3,924.26, the Nasdaq Composite Index dropped 4.2% to 11,630.86, the Dow Jones Industrial Average declined 3.0% to 31,318.84, the 10-year U.S. Treasury rate rose 16bps to 3.19% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.7%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 02 September 2022

06 September, 2022 | GraniteShares
Stock markets declined again last week, continuing their trend lower following Fed Chairman Jerome Powell’s Jackson Hole comments the previous Friday. Indications of a resilient economy, including a better-than-expected ISM Manufacturing PMI and lower-than-expected jobless claims, added to sentiment the Fed would likely continue its aggressive tightening policies. Friday’s Employment Report showing as-expected job gains but lower-thanexpected wage increases and a higher-than-expected unemployment rate, initially moved stock prices higher on hopes the report would give the Fed room to be less aggressive. Those hopes faded throughout the day, however, with all 3 major stock market indexes moving lower on the day. The 10-year Treasury rate, reflecting higher-rate expectations, rose 16bps over the week with 10-year real rates rising 26bps and 10-year inflation expectations falling 10bps. The U.S. dollar, also reflecting higher-rate expectations, strengthened ¾ percent. For the week, the S&P 500 Index fell 3.3% to 3,924.26, the Nasdaq Composite Index dropped 4.2% to 11,630.86, the Dow Jones Industrial Average declined 3.0% to 31,318.84, the 10-year U.S. Treasury rate rose 16bps to 3.19% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.7%.

Amidst uncertainty surrounding Fed Chairman Powell’s Jackson Hole speech Friday, all 3 major stock market indexes moved slightly lower through Thursday, falling between ½ percent and a little over a 1 percent. Powell’s comments Friday affirmed the Fed’s intent to maintain its vigilance against inflation, knocking all 3 major stock market indexes lower by 3% or more. The move lower Friday came despite indications of peaking inflation and a slowing economy with the PCE Price Index (the Fed’s preferred inflation measure) increasing less than expected, durable goods orders less than expected and with the composite PMI declining further below 50. The 10-year Treasury, interestingly, moved only slightly higher, rising 5bps on the week mainly due to higher 10-year real rates. For the week, the S&P 500 Index fell 4% to 4,057.66, the Nasdaq Composite Index dropped 4.4% to 12,141.71, the Dow Jones Industrial Average declined 4.2% to 32,282.80, the 10-year U.S. Treasury rate rose 5bps to 3.03% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.6%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 26 August 2022

30 August, 2022 | GraniteShares
Amidst uncertainty surrounding Fed Chairman Powell’s Jackson Hole speech Friday, all 3 major stock market indexes moved slightly lower through Thursday, falling between ½ percent and a little over a 1 percent. Powell’s comments Friday affirmed the Fed’s intent to maintain its vigilance against inflation, knocking all 3 major stock market indexes lower by 3% or more. The move lower Friday came despite indications of peaking inflation and a slowing economy with the PCE Price Index (the Fed’s preferred inflation measure) increasing less than expected, durable goods orders less than expected and with the composite PMI declining further below 50. The 10-year Treasury, interestingly, moved only slightly higher, rising 5bps on the week mainly due to higher 10-year real rates. For the week, the S&P 500 Index fell 4% to 4,057.66, the Nasdaq Composite Index dropped 4.4% to 12,141.71, the Dow Jones Industrial Average declined 4.2% to 32,282.80, the 10-year U.S. Treasury rate rose 5bps to 3.03% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.6%.

All three major stock indexes moved lower last week with the Nasdaq Composite Index significantly underperforming the other two. Early-week sentiment of peaking inflation and a more benign Fed began reversing mid-week following Wednesday’s release of FOMC minutes. Increasing concerns the Fed may continue its aggressive tightening, perhaps hiking rates 75bps higher again in September, combined with hawkish comments from Fed officials and signs of a still resilient job market, moved stock prices markedly lower Friday. The 10-year Treasury rate, lower through Tuesday, climbed higher the rest of the week reflecting both inflation and Fed policy concerns. Similarly, the U.S. dollar powered higher last week with the DXY index increasing just shy of 2.5%. For the week, the S&P 500 Index decreased 1.2% to 4,228.48, the Nasdaq Composite Index fell 2.6% to 12,705.21, the Dow Jones Industrial Average edged lower 0.2% to 33,706.15, the 10-year U.S. Treasury rate rose 14bps to 2.98% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 2.4%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 19 August 2022

23 August, 2022 | GraniteShares
All three major stock indexes moved lower last week with the Nasdaq Composite Index significantly underperforming the other two. Early-week sentiment of peaking inflation and a more benign Fed began reversing mid-week following Wednesday’s release of FOMC minutes. Increasing concerns the Fed may continue its aggressive tightening, perhaps hiking rates 75bps higher again in September, combined with hawkish comments from Fed officials and signs of a still resilient job market, moved stock prices markedly lower Friday. The 10-year Treasury rate, lower through Tuesday, climbed higher the rest of the week reflecting both inflation and Fed policy concerns. Similarly, the U.S. dollar powered higher last week with the DXY index increasing just shy of 2.5%. For the week, the S&P 500 Index decreased 1.2% to 4,228.48, the Nasdaq Composite Index fell 2.6% to 12,705.21, the Dow Jones Industrial Average edged lower 0.2% to 33,706.15, the 10-year U.S. Treasury rate rose 14bps to 2.98% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 2.4%.

Stock markets moved higher last week powered by lower-than-expected CPI and PPI releases. All three major indexes rose 3% or more with the S&P 500 Index slightly outperforming the Nasdaq Composite Index and the Dow Jones Industrial Average. Stock prices were lower through Tuesday tilted by weak earnings reports from Nvidia, Palantir and Micron, the previous Friday’s much stronger-than-expected payroll report and in anticipation of Wednesday’s CPI release. The much lower-than-expected CPI release Wednesday powered stock markets higher with growing expectations of a less aggressive Fed and, consequently, diminishing recession concerns. Stock markets paused on Thursday but resumed their move higher Friday on good earnings reports and improved consumer sentiment. The 10-year Treasury rate edged slightly higher last week, increasing 2bps with 10-year real rates and 10-year inflation expectations both increasing 1bp. For the week, the S&P 500 Index increased 3.3% to 4,280.15, the Nasdaq Composite Index rose 3.1% to 13,047.19, the Dow Jones Industrial Average edged gained 2.9% to close at 33,761.11, the 10-year U.S. Treasury rate rose 2bps to 2.84% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.9%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 12 August 2022

16 August, 2022 | GraniteShares
Stock markets moved higher last week powered by lower-than-expected CPI and PPI releases. All three major indexes rose 3% or more with the S&P 500 Index slightly outperforming the Nasdaq Composite Index and the Dow Jones Industrial Average. Stock prices were lower through Tuesday tilted by weak earnings reports from Nvidia, Palantir and Micron, the previous Friday’s much stronger-than-expected payroll report and in anticipation of Wednesday’s CPI release. The much lower-than-expected CPI release Wednesday powered stock markets higher with growing expectations of a less aggressive Fed and, consequently, diminishing recession concerns. Stock markets paused on Thursday but resumed their move higher Friday on good earnings reports and improved consumer sentiment. The 10-year Treasury rate edged slightly higher last week, increasing 2bps with 10-year real rates and 10-year inflation expectations both increasing 1bp. For the week, the S&P 500 Index increased 3.3% to 4,280.15, the Nasdaq Composite Index rose 3.1% to 13,047.19, the Dow Jones Industrial Average edged gained 2.9% to close at 33,761.11, the 10-year U.S. Treasury rate rose 2bps to 2.84% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.9%.

Stock prices mainly moved higher last week with the Nasdaq Composite Index strongly outperforming the Dow Jones Industrial Average and the SP 500 Index. The Dow Jones Industrial Average finished slightly lower on the week. Geo-political concerns dominated stock markets early in the week. Speaker of the House Nancy Pelosi’s vist to Taiwan and China’s strong condemnation of it pushed stock prices lower and bond and gold prices higher as investors sought haven-type investments. Wednesday’s strong ISM Services report and Friday’s much betterthan-expected jobs report renewed concerns of continued aggressive Fed tightening capping stock gains, driving the 10-year Treasury rate higher and strengthening the U.S. dollar. The 10-year Treasury rate increased 17bps over the week with a 25bp increase in 10-year real rates offset by an 8bp decline in 10-year inflation expectations. For the week, the S&P 500 Index increased 0.4% to 4,145.19, the Nasdaq Composite Index rose 2.1% to 12,657.55, the Dow Jones Industrial Average edged lower 0.1% to 32,801.51, the 10-year U.S. Treasury rate rose 17bps to 2.82% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.7%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 05 August 2022

09 August, 2022 | GraniteShares
Stock prices mainly moved higher last week with the Nasdaq Composite Index strongly outperforming the Dow Jones Industrial Average and the SP 500 Index. The Dow Jones Industrial Average finished slightly lower on the week. Geo-political concerns dominated stock markets early in the week. Speaker of the House Nancy Pelosi’s vist to Taiwan and China’s strong condemnation of it pushed stock prices lower and bond and gold prices higher as investors sought haven-type investments. Wednesday’s strong ISM Services report and Friday’s much betterthan-expected jobs report renewed concerns of continued aggressive Fed tightening capping stock gains, driving the 10-year Treasury rate higher and strengthening the U.S. dollar. The 10-year Treasury rate increased 17bps over the week with a 25bp increase in 10-year real rates offset by an 8bp decline in 10-year inflation expectations. For the week, the S&P 500 Index increased 0.4% to 4,145.19, the Nasdaq Composite Index rose 2.1% to 12,657.55, the Dow Jones Industrial Average edged lower 0.1% to 32,801.51, the 10-year U.S. Treasury rate rose 17bps to 2.82% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.7%.

Stock prices moved higher last week, struggling before Wednesday’s FOMC announcement and then rallying afterwards. Concerns of slower growth and weak earnings reports (accentuated by Walmart’s worse-than expected report after hours Monday) in front of Wednesday’s FOMC announcement pressured prices lower through Tuesday. Wednesday’s as-expected 75bp rate hike, combined with announcement wording suggesting the Fed would be less aggressive going forward, spurred stock prices higher. This risk-on sentiment continued through Friday despite Thursday’s report showing GDP contracted 0.9% in June, the second contraction in a row. Strong earnings reports from Alphabet, Microsoft and Amazon were responsible for stock markets moving higher as well. The 10-year Treasury rate, reacting to expectations of a less aggressive Fed, decreased 10bps. Interestingly, the decline resulted from a 30bp decrease in 10-year real rates offset by a 20bp increase in 10-year inflation expectations. Similarly, the U.S. dollar weakened, also reacting to prospects of less aggressive Fed tightening visà-vis other central banks. At week’s end, the S&P 500 Index rose 4.3% to 4,130.29, the Nasdaq Composite Index climbed 4.7% to 12,390.69, the Dow Jones Industrial Average increased 3.0% to 32,846.45, the 10-year U.S. Treasury rate fell 10 bps to 2.65% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.7%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 29 July 2022

02 August, 2022 | GraniteShares
Stock prices moved higher last week, struggling before Wednesday’s FOMC announcement and then rallying afterwards. Concerns of slower growth and weak earnings reports (accentuated by Walmart’s worse-than expected report after hours Monday) in front of Wednesday’s FOMC announcement pressured prices lower through Tuesday. Wednesday’s as-expected 75bp rate hike, combined with announcement wording suggesting the Fed would be less aggressive going forward, spurred stock prices higher. This risk-on sentiment continued through Friday despite Thursday’s report showing GDP contracted 0.9% in June, the second contraction in a row. Strong earnings reports from Alphabet, Microsoft and Amazon were responsible for stock markets moving higher as well. The 10-year Treasury rate, reacting to expectations of a less aggressive Fed, decreased 10bps. Interestingly, the decline resulted from a 30bp decrease in 10-year real rates offset by a 20bp increase in 10-year inflation expectations. Similarly, the U.S. dollar weakened, also reacting to prospects of less aggressive Fed tightening visà-vis other central banks. At week’s end, the S&P 500 Index rose 4.3% to 4,130.29, the Nasdaq Composite Index climbed 4.7% to 12,390.69, the Dow Jones Industrial Average increased 3.0% to 32,846.45, the 10-year U.S. Treasury rate fell 10 bps to 2.65% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.7%.

U.S. stock markets ended the week higher with all 3 major indexes increasing 2% or more and with the tech-heavy Nasdaq Composite Index outperforming. Better-than-expected earnings reports were the primary driver for higher stock prices, assisted by a weaker U.S. dollar and falling Treasury rates. Stock markets moved lower Friday, however, following a batch of weaker-than-expected earnings reports. The Nasdaq Composite Index, for example, up over 5% through Thursday, fell almost almost 2% Friday to end the week up 3.3%. The 10-year Treasury rate fell again last week, decreasing 18bps with 10-year real yields responsible for almost the entire move lower. 10- year real yields ended the week at 41bps, down 14bps from the previous week’s close of 55bps. At week’s end, the S&P 500 Index gained 2.5% to close at 3,961.63, the Nasdaq Composite Index climbed 3.3% to 11,834.11, the Dow Jones Industrial Average increased 2.0% to 31,900.61, the 10-year U.S. Treasury rate fell 18 bps to 2.75% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 1.3%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 22 July 2022

26 July, 2022 | GraniteShares
U.S. stock markets ended the week higher with all 3 major indexes increasing 2% or more and with the tech-heavy Nasdaq Composite Index outperforming. Better-than-expected earnings reports were the primary driver for higher stock prices, assisted by a weaker U.S. dollar and falling Treasury rates. Stock markets moved lower Friday, however, following a batch of weaker-than-expected earnings reports. The Nasdaq Composite Index, for example, up over 5% through Thursday, fell almost almost 2% Friday to end the week up 3.3%. The 10-year Treasury rate fell again last week, decreasing 18bps with 10-year real yields responsible for almost the entire move lower. 10- year real yields ended the week at 41bps, down 14bps from the previous week’s close of 55bps. At week’s end, the S&P 500 Index gained 2.5% to close at 3,961.63, the Nasdaq Composite Index climbed 3.3% to 11,834.11, the Dow Jones Industrial Average increased 2.0% to 31,900.61, the 10-year U.S. Treasury rate fell 18 bps to 2.75% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 1.3%.

Stock markets moved lower again last week with inflation/recession fears dominating markets. Higher-thanexpected CPI and PPI releases (Wednesday and Thursday, respectively) rekindled Fed-induced recession concerns with rising expectations of continued aggressive Fed tightening. Weaker-than-expected earnings reports from JP Morgan and Morgan Stanley pushed financial stocks lower, contributing to the overall market’s decline. Stock markets recovered a good portion of their losses through Thursday on Friday, however, with a stronger-thanexpected retail sales report and better-than-expected earnings reports from Wells Fargo, Citigroup and UnitedHealth Group somewhat ameliorating recession concerns. The 10-year Treasury rate decreased 15bps last week, perhaps reflecting investor sentiment that inflation has peaked and that the Fed will act to reduce rates sooner than expected. 10-year real yields were responsible for the all the decline in the 10-year Treasury rate, falling 16bps to 55bps from 71bps at the end of the previous week. At week’s end, the S&P 500 Index decreased 0.9% to 3,863.16, the Nasdaq Composite Index fell 1.6% to 11,452.42, the Dow Jones Industrial Average inched lower 0.2% to 31,286.20, the 10-year U.S. Treasury rate fell 15 bps to 2.93% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 1.0%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 15 July 2022

19 July, 2022 | GraniteShares
Stock markets moved lower again last week with inflation/recession fears dominating markets. Higher-thanexpected CPI and PPI releases (Wednesday and Thursday, respectively) rekindled Fed-induced recession concerns with rising expectations of continued aggressive Fed tightening. Weaker-than-expected earnings reports from JP Morgan and Morgan Stanley pushed financial stocks lower, contributing to the overall market’s decline. Stock markets recovered a good portion of their losses through Thursday on Friday, however, with a stronger-thanexpected retail sales report and better-than-expected earnings reports from Wells Fargo, Citigroup and UnitedHealth Group somewhat ameliorating recession concerns. The 10-year Treasury rate decreased 15bps last week, perhaps reflecting investor sentiment that inflation has peaked and that the Fed will act to reduce rates sooner than expected. 10-year real yields were responsible for the all the decline in the 10-year Treasury rate, falling 16bps to 55bps from 71bps at the end of the previous week. At week’s end, the S&P 500 Index decreased 0.9% to 3,863.16, the Nasdaq Composite Index fell 1.6% to 11,452.42, the Dow Jones Industrial Average inched lower 0.2% to 31,286.20, the 10-year U.S. Treasury rate fell 15 bps to 2.93% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 1.0%.

Stock markets moved higher last week with all 3 major stock indexes posting gains. The Nasdaq Composite Index strongly outperformed the S&P 500 Index and the Dow Jones Industrial Average, boosted by strong tech stock performance. Risk-on sentiment combined with growing expectations inflation my have peaked drove stock prices higher through Thursday. Wednesday’s FOMC minutes release confirmed the Fed’s commitment to fight inflation even at the risk of recession, spurring stock prices - especially tech stock prices – higher as inflation concerns mitigated. Friday’s stronger-than-expected Non-Farm payroll report somewhat renewed inflation concerns and increased expectations of aggressive Fed tightening but also contributed to the belief the economy may be strong enough to avoid a recession even in the face of concerted Fed action. The 10-year Treasury rate increased 19bps last week driven almost entirely by higher real rates. 10-year inflation expectations were almost unchanged at 2.37%. At week’s end, the S&P 500 Index gained 1.9% to 3,899.38, the Nasdaq Composite Index rose 4.6% to 11,635.31, the Dow Jones Industrial Average increased 0.8% to 31,339.20, the 10-year U.S. Treasury rate increased 19 bps to 3.08% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 1.7%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 08 July 2022

12 July, 2022 | GraniteShares
Stock markets moved higher last week with all 3 major stock indexes posting gains. The Nasdaq Composite Index strongly outperformed the S&P 500 Index and the Dow Jones Industrial Average, boosted by strong tech stock performance. Risk-on sentiment combined with growing expectations inflation my have peaked drove stock prices higher through Thursday. Wednesday’s FOMC minutes release confirmed the Fed’s commitment to fight inflation even at the risk of recession, spurring stock prices - especially tech stock prices – higher as inflation concerns mitigated. Friday’s stronger-than-expected Non-Farm payroll report somewhat renewed inflation concerns and increased expectations of aggressive Fed tightening but also contributed to the belief the economy may be strong enough to avoid a recession even in the face of concerted Fed action. The 10-year Treasury rate increased 19bps last week driven almost entirely by higher real rates. 10-year inflation expectations were almost unchanged at 2.37%. At week’s end, the S&P 500 Index gained 1.9% to 3,899.38, the Nasdaq Composite Index rose 4.6% to 11,635.31, the Dow Jones Industrial Average increased 0.8% to 31,339.20, the 10-year U.S. Treasury rate increased 19 bps to 3.08% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 1.7%.

U.S. stock markets ended the week lower with the S&P 500 Index recording its worst first-half performance since 1970 (the first half ended Thursday). Weak consumer confidence levels combined with earnings misses, unexpected lowering of earnings and revenue guidance and hawkish comments by Fed Chairman Powell helped pushed the S&P 500 Index over 3% lower and the Nasdaq Composite Index 5% lower through Thursday. Concerns of slowing growth and recession, however, receded Friday with all three Indexes increasing close to 1%. A slighly lower increase in the PCE price index compared to the previous month (Thursday release) combined with lowerthan-expected Chicago PMI and ISM Manufacturing levels as well as falling household spending helped support stock prices on hopes of peaking inflation and sooner-than-expected Fed easing. Supporting this sentiment, the 10-year Treasury rate fell 25bps last week, this time with almost all the decline coming from falling inflation expectations. 10-year real yields climbed as high as 70bps through Wednesday, but ended the week 3bps lower at 53bps. At week’s end, the S&P 500 Index fell 2.2% to 3,825.33, the Nasdaq Composite Index dropped 4.1% to 11,127.84, the Dow Jones Industrial Average decreased 1.3% to 31,0977.46, the 10-year U.S. Treasury rate fell 25 bps to 2.89% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.9%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 01 July 2022

05 July, 2022 | GraniteShares
U.S. stock markets ended the week lower with the S&P 500 Index recording its worst first-half performance since 1970 (the first half ended Thursday). Weak consumer confidence levels combined with earnings misses, unexpected lowering of earnings and revenue guidance and hawkish comments by Fed Chairman Powell helped pushed the S&P 500 Index over 3% lower and the Nasdaq Composite Index 5% lower through Thursday. Concerns of slowing growth and recession, however, receded Friday with all three Indexes increasing close to 1%. A slighly lower increase in the PCE price index compared to the previous month (Thursday release) combined with lowerthan-expected Chicago PMI and ISM Manufacturing levels as well as falling household spending helped support stock prices on hopes of peaking inflation and sooner-than-expected Fed easing. Supporting this sentiment, the 10-year Treasury rate fell 25bps last week, this time with almost all the decline coming from falling inflation expectations. 10-year real yields climbed as high as 70bps through Wednesday, but ended the week 3bps lower at 53bps. At week’s end, the S&P 500 Index fell 2.2% to 3,825.33, the Nasdaq Composite Index dropped 4.1% to 11,127.84, the Dow Jones Industrial Average decreased 1.3% to 31,0977.46, the 10-year U.S. Treasury rate fell 25 bps to 2.89% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.9%.

ETPs are exchange-listed investment vehicles. They are the type of securities that are designed to track the underlying security, an index, or other financial instruments. ETPs are just like stocks trade on the stock exchange i.e., their prices fluctuate on a day-to-day basis and intraday. These instruments are considered a low-cost alternative to mutual funds as well as actively managed funds. ETPs can be of a particular stock, indexes like NYSE ETPs, sector-specific indexes, or commodities like gold ETPs, and currencies.

Topic: Technology

Publication Type: Education , Articles , ETP and Industry

All about Exchange Traded Products (ETPs)

04 July, 2022 | GraniteShares
ETPs are exchange-listed investment vehicles. They are the type of securities that are designed to track the underlying security, an index, or other financial instruments. ETPs are just like stocks trade on the stock exchange i.e., their prices fluctuate on a day-to-day basis and intraday. These instruments are considered a low-cost alternative to mutual funds as well as actively managed funds. ETPs can be of a particular stock, indexes like NYSE ETPs, sector-specific indexes, or commodities like gold ETPs, and currencies.

In 2011, China had become a leading manufacturing nation, and later in 2013, it became a leading trading nation. By 2020, the nation had many new patents that were granted each year as the US and Japan combined. The company has been the second-largest economy in the world for 11 consecutive years since 2010. For four straight years, China has been number one in terms of traded volumes in the world. China in 2017 jumped up in traded volume from 26th position in the world and stayed number one since. At present, the country has become the world’s biggest export and importer as well as they are the second-largest importer.

Topic: Financials , Industrials , Technology

Publication Type: Articles , ETP and Industry , Investments

How to Short China

04 July, 2022 | GraniteShares
In 2011, China had become a leading manufacturing nation, and later in 2013, it became a leading trading nation. By 2020, the nation had many new patents that were granted each year as the US and Japan combined. The company has been the second-largest economy in the world for 11 consecutive years since 2010. For four straight years, China has been number one in terms of traded volumes in the world. China in 2017 jumped up in traded volume from 26th position in the world and stayed number one since. At present, the country has become the world’s biggest export and importer as well as they are the second-largest importer.

A sharp reversal higher for all 3 major stock indexes last week with yhr Nasdaq Composite Index outperforming both the S&P 500 Index and the Dow Jones Industrial Average. All 3 indexes moved higher by 2% or more Tuesday nd then rose another 3% or more on Friday. Growing expectations of the possibility of a recession drove investor sentiment last week, pushing markets higher on the belief the Fed’s aggressive battle against inflation will lead to lower rates sooner than expected. Fed Chairman Powell’s testimony before Congress Wednesday and Thursday affirmed the Fed’s commitment to strongly fight inflation even with the odds of a soft landing decreasing. Friday’s weak economic data releases added to this sentiment with the PMI Composite reaching a 5-month low and with he University of Michigan Consumer Sentiment recording another all-time low. The 10-year Treasury rate decreased 9bps last week, with almost all the decline coming from falling real rates. At week’s end, the S&P 500 Index rose 6.5% to 3,911.74, the Nasdaq Composite Index gained 7.5% to close at 11,607.62, the Dow Jones Industrial Average increased 5.4% to 31,503.71, the 10-year U.S. Treasury rate fell 9 bps to 3.14% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.5%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 24 June 2022

28 June, 2022 | GraniteShares
A sharp reversal higher for all 3 major stock indexes last week with yhr Nasdaq Composite Index outperforming both the S&P 500 Index and the Dow Jones Industrial Average. All 3 indexes moved higher by 2% or more Tuesday nd then rose another 3% or more on Friday. Growing expectations of the possibility of a recession drove investor sentiment last week, pushing markets higher on the belief the Fed’s aggressive battle against inflation will lead to lower rates sooner than expected. Fed Chairman Powell’s testimony before Congress Wednesday and Thursday affirmed the Fed’s commitment to strongly fight inflation even with the odds of a soft landing decreasing. Friday’s weak economic data releases added to this sentiment with the PMI Composite reaching a 5-month low and with he University of Michigan Consumer Sentiment recording another all-time low. The 10-year Treasury rate decreased 9bps last week, with almost all the decline coming from falling real rates. At week’s end, the S&P 500 Index rose 6.5% to 3,911.74, the Nasdaq Composite Index gained 7.5% to close at 11,607.62, the Dow Jones Industrial Average increased 5.4% to 31,503.71, the 10-year U.S. Treasury rate fell 9 bps to 3.14% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.5%.

Yet another volatile week for U.S. stock markets with steep declines in all 3 major indexes. The Nasdaq Composite Index dropped more than 4% on Tuesday and Thursday, the S&P 500 Index fell south of 3% on those same days and the Dow Jones Industrial Average, following suit, lost 2.5% or more. Fears of a Fed-induced recession, reinforced by the previous Friday’s CPI release, pushed stock prices lower throughout the week. Wednesday’s FOMC decision to raise the Fed funds target rate 75bps moved stock market indexes higher, rallying on Fed Chair Powell’s comments the increase was unusually large and would not become common. However, investor optimism faded sharply Thursday pushing stock prices markedly lower with growing expectations Fed tightening was likely to lead to a recession. Thursday also saw the BoE raise rates 25bps while the ECB held an unscheduled meeting Wednesday in an effort to provide assistance to struggling euro zone economies due to surging interest rates. The Nasdaq Composite Index rose just under 1.5% Friday on no real news, allowing it outperform the S&P 500 Index on the week by almost 1%. The 10-year Treasury rate rose 7bps over the week with a 26bp increase in 10-year real rates to 0.64% offset by a 19bps decline in 10-year inflation expectations to 2.59%. The 10-year Treasury rate closed well off its Tuesday’s high of 3.49% as did 10-year real rates which closed Tuesday at 83bps.At week’s end, the S&P 500 Index fell 5.8% to 3,674.84, the Nasdaq Composite Index lost 4.8% to close at 10,798.35, the Dow Jones Industrial Average decreased 4.8% to 29,885.08, the 10-year U.S. Treasury rate rose 7 bps to 3.23% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.5%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 17 June 2022

21 June, 2022 | GraniteShares
Yet another volatile week for U.S. stock markets with steep declines in all 3 major indexes. The Nasdaq Composite Index dropped more than 4% on Tuesday and Thursday, the S&P 500 Index fell south of 3% on those same days and the Dow Jones Industrial Average, following suit, lost 2.5% or more. Fears of a Fed-induced recession, reinforced by the previous Friday’s CPI release, pushed stock prices lower throughout the week. Wednesday’s FOMC decision to raise the Fed funds target rate 75bps moved stock market indexes higher, rallying on Fed Chair Powell’s comments the increase was unusually large and would not become common. However, investor optimism faded sharply Thursday pushing stock prices markedly lower with growing expectations Fed tightening was likely to lead to a recession. Thursday also saw the BoE raise rates 25bps while the ECB held an unscheduled meeting Wednesday in an effort to provide assistance to struggling euro zone economies due to surging interest rates. The Nasdaq Composite Index rose just under 1.5% Friday on no real news, allowing it outperform the S&P 500 Index on the week by almost 1%. The 10-year Treasury rate rose 7bps over the week with a 26bp increase in 10-year real rates to 0.64% offset by a 19bps decline in 10-year inflation expectations to 2.59%. The 10-year Treasury rate closed well off its Tuesday’s high of 3.49% as did 10-year real rates which closed Tuesday at 83bps.At week’s end, the S&P 500 Index fell 5.8% to 3,674.84, the Nasdaq Composite Index lost 4.8% to close at 10,798.35, the Dow Jones Industrial Average decreased 4.8% to 29,885.08, the 10-year U.S. Treasury rate rose 7 bps to 3.23% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.5%.

Another volatile week for U.S. stock markets with all three major indexes losing 4.5% or more. Up close to a percent through Tuesday on hopes a strong economy (inspired by a stronger-than-expected Non-Farm Payroll Report on Friday of the previous week) could weather anticipated Fed rate increases, markets reversed course beginning Wednesday precipitated by earnings warnings from retailers, banks and some large growth companies. Thursday’s ECB announcement that it would raise rates at least 50bps by September added fuel to the fire pushing both the S&P 500 Index almost 2.5% lower and Nasdaq Composite Index almost 3% lower. Markets slid even further Friday following a higher-than-expected CPI release, increasing expectations of an even more aggressive Fed pushing the economy into a recession. Friday’s University of Michigan’s Consumer Sentiment release registered an all-time low added to selling pressure. The 10-year U.S Treasury rate rose 22bps last week after rising 20bps the previous week and the U.S. dollar moved markedly higher, strengthening almost 2%. This time rising 10-year real rates accounted for almost all of the increase with 10-year inflation expectations increasing only 2bps. At week’s end, the S&P 500 Index fell 5.1% to 3,900.86, the Nasdaq Composite Index lost 5.6% to close at 11,340.02, the Dow Jones Industrial Average decreased 4.6% to 31,392.36, the 10-year U.S. Treasury rate rose 22 bps to 3.16% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 2.0%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 10 June 2022

14 June, 2022 | GraniteShares
Another volatile week for U.S. stock markets with all three major indexes losing 4.5% or more. Up close to a percent through Tuesday on hopes a strong economy (inspired by a stronger-than-expected Non-Farm Payroll Report on Friday of the previous week) could weather anticipated Fed rate increases, markets reversed course beginning Wednesday precipitated by earnings warnings from retailers, banks and some large growth companies. Thursday’s ECB announcement that it would raise rates at least 50bps by September added fuel to the fire pushing both the S&P 500 Index almost 2.5% lower and Nasdaq Composite Index almost 3% lower. Markets slid even further Friday following a higher-than-expected CPI release, increasing expectations of an even more aggressive Fed pushing the economy into a recession. Friday’s University of Michigan’s Consumer Sentiment release registered an all-time low added to selling pressure. The 10-year U.S Treasury rate rose 22bps last week after rising 20bps the previous week and the U.S. dollar moved markedly higher, strengthening almost 2%. This time rising 10-year real rates accounted for almost all of the increase with 10-year inflation expectations increasing only 2bps. At week’s end, the S&P 500 Index fell 5.1% to 3,900.86, the Nasdaq Composite Index lost 5.6% to close at 11,340.02, the Dow Jones Industrial Average decreased 4.6% to 31,392.36, the 10-year U.S. Treasury rate rose 22 bps to 3.16% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 2.0%.

A choppy week for U.S. stock markets with investor sentiment pushed and pulled by uncertainty surrounding the Fed’s tightening of monetary policy, the trajectory of inflation, the strength of the economy and whether major stock market indexes have bottomed. Down almost 1.5% through Wednesday, the S&P 500 Index rose just under 2% Thursday, buoyed by hopes of a slowing economy and peaking inflation following a much weaker-than expected ADP jobs number released Wednesday. That sentiment was reversed Friday after the release of the Non-Farm Payroll report showing larger-than-expected job growth and continued wage pressures. The 10-yearr U.S Treasury rate rose 20bps last week, with slightly more than half of the increase coming from rising inflation expectation and slightly less than half coming from rising real rates. At week’s end, the S&P 500 Index fell 1.2% to 4,108.54, the Nasdaq Composite Index lost 1.0% to close at 12,012.73, the Dow Jones Industrial Average decreased 1.0% to 32,989.91, the 10-year U.S. Treasury rate jumped 20 bps to 2.94% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.4%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 03 June 2022

07 June, 2022 | GraniteShares
A choppy week for U.S. stock markets with investor sentiment pushed and pulled by uncertainty surrounding the Fed’s tightening of monetary policy, the trajectory of inflation, the strength of the economy and whether major stock market indexes have bottomed. Down almost 1.5% through Wednesday, the S&P 500 Index rose just under 2% Thursday, buoyed by hopes of a slowing economy and peaking inflation following a much weaker-than expected ADP jobs number released Wednesday. That sentiment was reversed Friday after the release of the Non-Farm Payroll report showing larger-than-expected job growth and continued wage pressures. The 10-yearr U.S Treasury rate rose 20bps last week, with slightly more than half of the increase coming from rising inflation expectation and slightly less than half coming from rising real rates. At week’s end, the S&P 500 Index fell 1.2% to 4,108.54, the Nasdaq Composite Index lost 1.0% to close at 12,012.73, the Dow Jones Industrial Average decreased 1.0% to 32,989.91, the 10-year U.S. Treasury rate jumped 20 bps to 2.94% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.4%.

U.S. stock markets powered higher last week with all three major stock market indexes rising more than 6%.Stronger-than-expected retail earnings reports, a no-surprise release of Fed minutes, increased householdspending and a slight decline in the Fed’s preferred inflation index all contributed to last week’s performance. TheDow Jones Industrial Average increased every day last week while the S&P 500 and Nasdaq Indexes moved higher every day but Tuesday when Snap Inc plummeted 43% on profit and revenue warnings. Stock markets moved higher despite some weaker-than-expected economic releases, namely much lower-than-expected growth in new home sales, a larger contraction in Q1 GDP than estimated last month and an over 10-year low in consumer sentiment. 10-year U.S. Treasury rates moved 5bps lower last week with the move lower coming from falling 10- year real rates (down 11bps to 9bs). 10-year inflation expectations rose 6bps to 2.65%. At week’s end, the S&P 500 Index increased 6.6% to 4,158.24, the Nasdaq Composite Index gained 6.8% to close at 12,131.13, the Dow Jones Industrial Average rose 6.2% to 33,213.55, the 10-year U.S. Treasury rate decreased 5 bps to 2.74% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 1.4%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 27 May 2022

30 May, 2022 | GraniteShares
U.S. stock markets powered higher last week with all three major stock market indexes rising more than 6%.Stronger-than-expected retail earnings reports, a no-surprise release of Fed minutes, increased householdspending and a slight decline in the Fed’s preferred inflation index all contributed to last week’s performance. TheDow Jones Industrial Average increased every day last week while the S&P 500 and Nasdaq Indexes moved higher every day but Tuesday when Snap Inc plummeted 43% on profit and revenue warnings. Stock markets moved higher despite some weaker-than-expected economic releases, namely much lower-than-expected growth in new home sales, a larger contraction in Q1 GDP than estimated last month and an over 10-year low in consumer sentiment. 10-year U.S. Treasury rates moved 5bps lower last week with the move lower coming from falling 10- year real rates (down 11bps to 9bs). 10-year inflation expectations rose 6bps to 2.65%. At week’s end, the S&P 500 Index increased 6.6% to 4,158.24, the Nasdaq Composite Index gained 6.8% to close at 12,131.13, the Dow Jones Industrial Average rose 6.2% to 33,213.55, the 10-year U.S. Treasury rate decreased 5 bps to 2.74% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 1.4%.

It has listed its ground-breaking FAANG, GAFAM and FATANG ETPs on Borsa Italiana as well as leveraged single stock ETPs offering long and short daily leveraged exposure on the largest individual US stocks Amazon, Apple, Google, Facebook, Microsoft, NVIVIDA, Tesla and Uber.

Topic: Technology , Services Financiers , Single Stocks

Publication Type: ETP and Industry , Single stock research

GRANITESHARES BUILDS ON EUROPEAN EXPANSION WITH ITALIAN LAUNCH

27 May, 2022 | GraniteShares
It has listed its ground-breaking FAANG, GAFAM and FATANG ETPs on Borsa Italiana as well as leveraged single stock ETPs offering long and short daily leveraged exposure on the largest individual US stocks Amazon, Apple, Google, Facebook, Microsoft, NVIVIDA, Tesla and Uber.

GraniteShares, which offers a range of 3x short and 3x leveraged ETPs on popular UK, US, and European Stocks, has been rated as the Best ETP Provider in the ADVFN International Financial Awards.

Topic: Financials , Technology

Publication Type: ETP and Industry

GRANITESHARES IS VOTED BEST ETP PROVIDER

27 May, 2022 | GraniteShares
GraniteShares, which offers a range of 3x short and 3x leveraged ETPs on popular UK, US, and European Stocks, has been rated as the Best ETP Provider in the ADVFN International Financial Awards.

Analysis of industry data by ETF provider GraniteShares reveals that 72 FTSE 100 and FTSE 250 companies have annual dividend yields of 0% based on the current share price and the total dividends declared in the previous 12 months.

Topic: Technology

Publication Type: ETP and Industry

INVESTORS IN FTSE 100 AND FTSE 250 COMPANIES MISSING OUT ON DIVIDEND RECOVERY

27 May, 2022 | GraniteShares
Analysis of industry data by ETF provider GraniteShares reveals that 72 FTSE 100 and FTSE 250 companies have annual dividend yields of 0% based on the current share price and the total dividends declared in the previous 12 months.

January 19, 2022 – ETP provider GraniteShares, which offers a range of 3x short and 3x leveraged ETPs on popular UK, US, and French stocks, recorded a significant rise in trading to a new record as sophisticated investors increasingly adopted institutional investor strategies. GRANITESHARES SEES SURGE IN ETP TRADING

Topic: Telecoms , Technology

Publication Type: ETP and Industry

GRANITESHARES SEES SURGE IN ETP TRADING

27 May, 2022 | GraniteShares
January 19, 2022 – ETP provider GraniteShares, which offers a range of 3x short and 3x leveraged ETPs on popular UK, US, and French stocks, recorded a significant rise in trading to a new record as sophisticated investors increasingly adopted institutional investor strategies. GRANITESHARES SEES SURGE IN ETP TRADING

DATE – ETP provider GraniteShares, which offers a unique range of 3x short and 3x leveraged ETPs on popular UK, US, and European Stocks, has seen a 166% rise in trading in its range of short ETPs on popular stocks amid the recent market sell off, and as part of this a surge in visits to its website from South Korean investors.  This is despite the fact that its short and leveraged ETPs are only listed in Europe.

Topic: Technology

Publication Type: Market Commentaries

GRANITESHARES 3X SHORT AND 3X LONG ETPS SEE SURGE IN INTEREST FROM KOREAN INVESTORS

27 May, 2022 | GraniteShares
DATE – ETP provider GraniteShares, which offers a unique range of 3x short and 3x leveraged ETPs on popular UK, US, and European Stocks, has seen a 166% rise in trading in its range of short ETPs on popular stocks amid the recent market sell off, and as part of this a surge in visits to its website from South Korean investors.  This is despite the fact that its short and leveraged ETPs are only listed in Europe.

January 31st, 2022 – ETP provider GraniteShares, which offers a range of 3x short and 3x leveraged ETPs on popular UK, US, and European Stocks, has seen a 166% rise in trading in its range of short ETPs on popular stocks amid the recent market sell off.

Topic: Technology

Publication Type: Market Commentaries , ETP and Industry

GRANITESHARES 3X SHORT ETPS SEE TRADING SURGE BY 166% AMID JANUARY SELL-OFF

27 May, 2022 | GraniteShares
January 31st, 2022 – ETP provider GraniteShares, which offers a range of 3x short and 3x leveraged ETPs on popular UK, US, and European Stocks, has seen a 166% rise in trading in its range of short ETPs on popular stocks amid the recent market sell off.

New analysis (1) from ETP provider GraniteShares, which offers a range of 3x short and 3x leveraged ETPs on popular UK, US and French stocks, reveals that on January 25th  2022, Cineworld Group, the world's second-largest cinema chain, was the most shorted UK listed company.  Some 8.8% of its stock was held short by six investment firms, with New Holland Capital LLC the largest short position with 2.42% of the company’s shares.

Topic: Technology

Publication Type: Market Commentaries , ETP and Industry

ANALYSIS REVEALS TOP 10 MOST SHORTED UK STOCKS AND MOST ACTIVE FUND MANAGERS FOR SHORTING

27 May, 2022 | GraniteShares
New analysis (1) from ETP provider GraniteShares, which offers a range of 3x short and 3x leveraged ETPs on popular UK, US and French stocks, reveals that on January 25th  2022, Cineworld Group, the world's second-largest cinema chain, was the most shorted UK listed company.  Some 8.8% of its stock was held short by six investment firms, with New Holland Capital LLC the largest short position with 2.42% of the company’s shares.

New analysis (1) from ETP provider GraniteShares, which offers a range of 3x short and 3x leveraged ETPs on popular UK, US, and European stocks, reveals that on March 24th 2022, Cineworld Group, the world's second-largest cinema chain, was the most shorted UK listed company.  Some 8.1% of its stock was held short by five investment firms, with New Holland Capital LLC holding the largest short position with 2.42% of the company’s shares. Will Rhind, Founder and CEO of GraniteShares, said: “Hopes that UK stocks were set for a strong year have evaporated as the war in Ukraine and rising inflation hits confidence and drives volatility across the market.”

Topic: Technology

Publication Type: Market Commentaries , ETP and Industry

ANALYSIS REVEALS TOP 10 MOST SHORTED UK STOCKS AND MOST ACTIVE SHORT ETPs

27 May, 2022 | GraniteShares
New analysis (1) from ETP provider GraniteShares, which offers a range of 3x short and 3x leveraged ETPs on popular UK, US, and European stocks, reveals that on March 24th 2022, Cineworld Group, the world's second-largest cinema chain, was the most shorted UK listed company.  Some 8.1% of its stock was held short by five investment firms, with New Holland Capital LLC holding the largest short position with 2.42% of the company’s shares. Will Rhind, Founder and CEO of GraniteShares, said: “Hopes that UK stocks were set for a strong year have evaporated as the war in Ukraine and rising inflation hits confidence and drives volatility across the market.”

Another down week for U.S. stock markets accompanied by continued volatility. Stock prices rose early in the week, with the S&P 500 index increasing 2% Tuesday on stronger-than-expected retail sales as well as on increased risk-on sentiment. That sentiment disappeared Wednesday with all 3 major stock market indexes falling south of 3.5%, precipitated by weaker-than-expected earnings reports from major retailers includeing Walmart and Target. Elevated concerns of decreased consumer spending and lower corporate profits due to high levels of inflation pushed stock prices lower the remainder of week Despite Fed Chairman Powell’s comments Tuesday reiterating the Fed’s resolve to restore price stability, the 10-year U.S. Treasury rate fell 14bps over the week and the U.S. dollar weakened. Interestingly, the decline came entirely from falling 10-year inflation expectations with 10-year real rates remaining unchanged. 10-year inflation expectations closed the week at 2.59%, down from almost 3% a few weeks ago. At week’s end, the S&P 500 Index fell 3.0% to 3,901.36, the Nasdaq Composite Index dropped 3.8% to 11,354.62, the Dow Jones Industrial Average fell 2.9% to 31,260.58, the 10-year U.S. Treasury rate decreased 14 bps to 2.79% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 1.5%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 20 May 2022

24 May, 2022 | GraniteShares
Another down week for U.S. stock markets accompanied by continued volatility. Stock prices rose early in the week, with the S&P 500 index increasing 2% Tuesday on stronger-than-expected retail sales as well as on increased risk-on sentiment. That sentiment disappeared Wednesday with all 3 major stock market indexes falling south of 3.5%, precipitated by weaker-than-expected earnings reports from major retailers includeing Walmart and Target. Elevated concerns of decreased consumer spending and lower corporate profits due to high levels of inflation pushed stock prices lower the remainder of week Despite Fed Chairman Powell’s comments Tuesday reiterating the Fed’s resolve to restore price stability, the 10-year U.S. Treasury rate fell 14bps over the week and the U.S. dollar weakened. Interestingly, the decline came entirely from falling 10-year inflation expectations with 10-year real rates remaining unchanged. 10-year inflation expectations closed the week at 2.59%, down from almost 3% a few weeks ago. At week’s end, the S&P 500 Index fell 3.0% to 3,901.36, the Nasdaq Composite Index dropped 3.8% to 11,354.62, the Dow Jones Industrial Average fell 2.9% to 31,260.58, the 10-year U.S. Treasury rate decreased 14 bps to 2.79% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 1.5%.

U.S. stock markets finished lower last week while experiencing another bout of volatility. Investor trepidation focusing on continued elevated inflation, aggressive Fed tightening, Chinese Covid-related lockdowns and the Russia-Ukraine war combined to push stock markets sharply lower through Thursday with the Nasdaq Composite Index, for example, falling nearly 6.5%. Lower than the previous month’s levels but higher than expected, Wednesday’s CPI release enforced inflation and aggressive Fed tightening concerns causing markets to falter, with the Nasdaq Composite Index reacting the worst, falling over 3%. Stock markets rallied sharply Friday on no new news but perhaps benefiting from investors believing the market was oversold. Interestingly, the 10-year Treasury rate decreased 21bps over the week, with 2/3 of the decline coming from falling 10-year inflation expectations and the remaining 1/3 from falling 10-year real rates. Falling inflation expectations may possibly reflect market sentiment that inflation has peaked. The U.S. dollar continued to strengthen. At week’s end, the S&P 500 Index lost 2.4% to close at 4,023.89, the Nasdaq Composite Index dropped 2.8% to 11,805.00, the Dow Jones Industrial Average fell 2.1% to 32,195.94, the 10-year U.S. Treasury rate decreased 21 bps to 2.93% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.9%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 13 May 2022

17 May, 2022 | GraniteShares
U.S. stock markets finished lower last week while experiencing another bout of volatility. Investor trepidation focusing on continued elevated inflation, aggressive Fed tightening, Chinese Covid-related lockdowns and the Russia-Ukraine war combined to push stock markets sharply lower through Thursday with the Nasdaq Composite Index, for example, falling nearly 6.5%. Lower than the previous month’s levels but higher than expected, Wednesday’s CPI release enforced inflation and aggressive Fed tightening concerns causing markets to falter, with the Nasdaq Composite Index reacting the worst, falling over 3%. Stock markets rallied sharply Friday on no new news but perhaps benefiting from investors believing the market was oversold. Interestingly, the 10-year Treasury rate decreased 21bps over the week, with 2/3 of the decline coming from falling 10-year inflation expectations and the remaining 1/3 from falling 10-year real rates. Falling inflation expectations may possibly reflect market sentiment that inflation has peaked. The U.S. dollar continued to strengthen. At week’s end, the S&P 500 Index lost 2.4% to close at 4,023.89, the Nasdaq Composite Index dropped 2.8% to 11,805.00, the Dow Jones Industrial Average fell 2.1% to 32,195.94, the 10-year U.S. Treasury rate decreased 21 bps to 2.93% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.9%.

Another volatile week with major stock market indexes finishing lower. The volatility last week, however, was concentrated in large offsetting moves Wednesday and Thursday following the FOMC decision to increase the Fed funds target rate by 50bps. The sharp rally Wednesday came as the Fed excluded 75bp rate increases – a possibility the market had considered highly probable – pushing all 3 major stock market indexes 3% higher. Thursday’s sharp selloff occurred on no new news but as investors reassessed their market outlooks given the Fed’s apparent rate-hike path and rising longer-term interest rates. Friday’s better-than-expected Non-farm Payroll Report offered no reprieve from falling stock markets, with some analysts saying it provided evidence the economy remained strong and could withstand aggressive Fed tightening without the risk of recession. Concerns regarding China’s Covid-related lockdowns and the Russia-Ukraine war also weighed on markets. 10-year U.S. Treasury rates rose 20bps to levels not seen in over 3 years. The increase was due entirely to rising real yields (up 27bps to 0.27%) and offset partially by falling 10-year inflation expectations (down 7bps to 2.87%). The U.S. dollar continued to strengthen. At week’s end, the S&P 500 Index decreased 0.2% to 4,123.34, the Nasdaq Composite Index fell 1.5% to 12,144.66, the Dow Jones Industrial Average decreased 0.2% to 32,901.08, the 10-year U.S. Treasury rate rose 20 bps to 3.14% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.7%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

The Long and Short of it, week ending 06 May 2022

10 May, 2022 | GraniteShares
Another volatile week with major stock market indexes finishing lower. The volatility last week, however, was concentrated in large offsetting moves Wednesday and Thursday following the FOMC decision to increase the Fed funds target rate by 50bps. The sharp rally Wednesday came as the Fed excluded 75bp rate increases – a possibility the market had considered highly probable – pushing all 3 major stock market indexes 3% higher. Thursday’s sharp selloff occurred on no new news but as investors reassessed their market outlooks given the Fed’s apparent rate-hike path and rising longer-term interest rates. Friday’s better-than-expected Non-farm Payroll Report offered no reprieve from falling stock markets, with some analysts saying it provided evidence the economy remained strong and could withstand aggressive Fed tightening without the risk of recession. Concerns regarding China’s Covid-related lockdowns and the Russia-Ukraine war also weighed on markets. 10-year U.S. Treasury rates rose 20bps to levels not seen in over 3 years. The increase was due entirely to rising real yields (up 27bps to 0.27%) and offset partially by falling 10-year inflation expectations (down 7bps to 2.87%). The U.S. dollar continued to strengthen. At week’s end, the S&P 500 Index decreased 0.2% to 4,123.34, the Nasdaq Composite Index fell 1.5% to 12,144.66, the Dow Jones Industrial Average decreased 0.2% to 32,901.08, the 10-year U.S. Treasury rate rose 20 bps to 3.14% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.7%.

A very volatile week for U.S. stock markets with the S&P 500 Index recording 2.5% or greater moves 3 days last week and the Nasdaq Composite Index registering two 4% moves and one 3% move. All three major stock indexes fell significantly last week with the Nasdaq Composite Index underperforming the both the S&P 500 Index and the Dow Jones Industrial Average. Stock markets were battered by a combination of investor concerns including continued elevated inflation levels, this Tuesday’s FOMC meeting and expectations of an aggressively tightening Fed, slowing Chinese economic growth and weaker-than-expected earnings reports. These concerns, more or less, translate into fears of weaker U.S. economic growth or recession pressuring stock valuations (especially for tech stocks) lower. Thursday’s surprise Q1 GDP contraction along with Friday’s elevated PCE Price Index release seemed to support these concerns as did earnings misses from Alphabet, Microsoft and Amazon. 10-year U.S. Treasury rates rose slightly last week but the increase came as real rates rose and inflation expectations fell, perhaps reflecting expectations inflation levels may have peaked. 10-year real rates closed the week at 0% while 10-year inflation expectations finished at 2.94%. The U.S. dollar sharply increased last week mirroring the rise in 10-year real rates. At week’s end, the S&P 500 Index decreased 3.2% to 4,131.93, the Nasdaq Composite Index fell 3.9% to 12,334.64, the Dow Jones Industrial Average dropped 2.5% to 32,978.52, the 10-year U.S. Treasury rate rose 3 bps to 2.94% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 2.0%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

The Long and Short of it, week ending 29 April 2022

03 May, 2022 | GraniteShares
A very volatile week for U.S. stock markets with the S&P 500 Index recording 2.5% or greater moves 3 days last week and the Nasdaq Composite Index registering two 4% moves and one 3% move. All three major stock indexes fell significantly last week with the Nasdaq Composite Index underperforming the both the S&P 500 Index and the Dow Jones Industrial Average. Stock markets were battered by a combination of investor concerns including continued elevated inflation levels, this Tuesday’s FOMC meeting and expectations of an aggressively tightening Fed, slowing Chinese economic growth and weaker-than-expected earnings reports. These concerns, more or less, translate into fears of weaker U.S. economic growth or recession pressuring stock valuations (especially for tech stocks) lower. Thursday’s surprise Q1 GDP contraction along with Friday’s elevated PCE Price Index release seemed to support these concerns as did earnings misses from Alphabet, Microsoft and Amazon. 10-year U.S. Treasury rates rose slightly last week but the increase came as real rates rose and inflation expectations fell, perhaps reflecting expectations inflation levels may have peaked. 10-year real rates closed the week at 0% while 10-year inflation expectations finished at 2.94%. The U.S. dollar sharply increased last week mirroring the rise in 10-year real rates. At week’s end, the S&P 500 Index decreased 3.2% to 4,131.93, the Nasdaq Composite Index fell 3.9% to 12,334.64, the Dow Jones Industrial Average dropped 2.5% to 32,978.52, the 10-year U.S. Treasury rate rose 3 bps to 2.94% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 2.0%.

U.S. stock markets moved lower in another volatile week spurred by hawkish comments from Fed Chairman Powell and outlier weak earnings from Netflix, Verizon and Universal Health Services (Netflix plummeted 35% Wednesday after its after-hours earnings release Tuesday). All three major stock market indexes were higher through Wednesday with risk-on sentiment increasing after two weeks of drawdowns and with sharply falling oil prices. Chairman Powell’s comments on Thursday proclaiming the need to immediately tame inflation and stating a 50bp increase is being considered in May pushed markets sharply lower over Thursday and Friday with the Nasdaq Composite Index, for example, losing over 4.5% over those two days. The Dow Jones Industrial Average continued to outperform both the Nasdaq Composite and S&P 500 Indexes. Rising 10-year U.S. Treasury rates, reaching a high of 2.94% Tuesday, reflecting investor concerns of continued high inflation and rising real yields, increased expectations of slowing economic growth and even of a recession. While the 10-year U.S Treasury rate ended the week off its intraweek high, it closed 8bps higher due entirely to rising 10- year inflation expectations. At week’s end, the S&P 500 Index decreased 2.8% to 4,271.78, the Nasdaq Composite Index fell 3.8% to 12,839.29, the Dow Jones Industrial Average dropped 1.9% to 33,813.44, the 10- year U.S. Treasury rate rose 8 bps to 2.91% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.9%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

The Long and Short of it, week ending 22 April 2022

26 April, 2022 | GraniteShares
U.S. stock markets moved lower in another volatile week spurred by hawkish comments from Fed Chairman Powell and outlier weak earnings from Netflix, Verizon and Universal Health Services (Netflix plummeted 35% Wednesday after its after-hours earnings release Tuesday). All three major stock market indexes were higher through Wednesday with risk-on sentiment increasing after two weeks of drawdowns and with sharply falling oil prices. Chairman Powell’s comments on Thursday proclaiming the need to immediately tame inflation and stating a 50bp increase is being considered in May pushed markets sharply lower over Thursday and Friday with the Nasdaq Composite Index, for example, losing over 4.5% over those two days. The Dow Jones Industrial Average continued to outperform both the Nasdaq Composite and S&P 500 Indexes. Rising 10-year U.S. Treasury rates, reaching a high of 2.94% Tuesday, reflecting investor concerns of continued high inflation and rising real yields, increased expectations of slowing economic growth and even of a recession. While the 10-year U.S Treasury rate ended the week off its intraweek high, it closed 8bps higher due entirely to rising 10- year inflation expectations. At week’s end, the S&P 500 Index decreased 2.8% to 4,271.78, the Nasdaq Composite Index fell 3.8% to 12,839.29, the Dow Jones Industrial Average dropped 1.9% to 33,813.44, the 10- year U.S. Treasury rate rose 8 bps to 2.91% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.9%.

Yet another volatile week for U.S. stock markets with the S&P 500 and Nasdaq Composite Index moving between 1% and 2% 3 out of the 4 trading days last week. All three major stock indexes moved lower last week the Dow Jones Industrial Average significantly outperforming both the Nasdaq Composite and S&P 500Index as value stocks continued to outperform growth stocks. Inflation concerns, spurred by near-record CPIand PPI releases (Tuesday and Wednesday, respectively), rising interest rates, Chinese Covid-related lockdowns and growing concerns an aggressive Fed may precipitate slower growth or a recession were all factors pushing stock markets lower last week. 10-year U.S Treasury rates rose again last week, increasing 13bps. Most of the increase, again, came from rising real rates (+10bps to -0.08%) but 10-year inflation expectations also rose, increasing 3bps to 2.91%. At week’s end, the S&P 500 Index decreased 2.1% to 4,392.59, the Nasdaq Composite Index fell 2.6% to 13,351.08, the Dow Jones Industrial Average decreased 0.8% to 34,450.84, the 10-year U.S. Treasury rate rose 13 bps to 2.83% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.6%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

The Long and Short of it, week ending 14 April 2022

20 April, 2022 | GraniteShares
Yet another volatile week for U.S. stock markets with the S&P 500 and Nasdaq Composite Index moving between 1% and 2% 3 out of the 4 trading days last week. All three major stock indexes moved lower last week the Dow Jones Industrial Average significantly outperforming both the Nasdaq Composite and S&P 500Index as value stocks continued to outperform growth stocks. Inflation concerns, spurred by near-record CPIand PPI releases (Tuesday and Wednesday, respectively), rising interest rates, Chinese Covid-related lockdowns and growing concerns an aggressive Fed may precipitate slower growth or a recession were all factors pushing stock markets lower last week. 10-year U.S Treasury rates rose again last week, increasing 13bps. Most of the increase, again, came from rising real rates (+10bps to -0.08%) but 10-year inflation expectations also rose, increasing 3bps to 2.91%. At week’s end, the S&P 500 Index decreased 2.1% to 4,392.59, the Nasdaq Composite Index fell 2.6% to 13,351.08, the Dow Jones Industrial Average decreased 0.8% to 34,450.84, the 10-year U.S. Treasury rate rose 13 bps to 2.83% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.6%.

A down week for U.S. stock markets with the Nasdaq Composite Index significantly underperforming the Dow Jones Industrial Average and, to a lesser extent, the S&P 500 Index. The underperformance of Tech/growth stocks vis a vis value/cyclical stocks last week followed statements by Fed President Brainard Tuesday and the release of FOMC minutes Wednesday both strongly suggesting the Fed will act aggressively to subdue current high levels of inflation. Anticipated Fed action included 50bp rate hikes 1 or more times and an immediate $95 billion reduction in the Fed’s balance sheet in May. 10-year U.S Treasury rates soared as result, increasing more than 30bps over the week to finish at a 3-year high and, in the process, punishing tech/growth stocks. While most of the increase in the 10-year U.S. Treasury rate came from a rise in real rates, it’s interesting to note that 10-year inflation expectations increased 6bps over the week to 2.88%. At week’s end, the S&P 500 Index decreased 1.3% to 4,488.28, the Nasdaq Composite Index fell 3.9% to 13,711.00, the Dow Jones Industrial Average edged 0.3% lower to 34,723.03, the 10-year U.S. Treasury rate jumped 32bps to 2.70% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.32%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

The Long and Short of it, week ending 08 April 2022

11 April, 2022 | GraniteShares
A down week for U.S. stock markets with the Nasdaq Composite Index significantly underperforming the Dow Jones Industrial Average and, to a lesser extent, the S&P 500 Index. The underperformance of Tech/growth stocks vis a vis value/cyclical stocks last week followed statements by Fed President Brainard Tuesday and the release of FOMC minutes Wednesday both strongly suggesting the Fed will act aggressively to subdue current high levels of inflation. Anticipated Fed action included 50bp rate hikes 1 or more times and an immediate $95 billion reduction in the Fed’s balance sheet in May. 10-year U.S Treasury rates soared as result, increasing more than 30bps over the week to finish at a 3-year high and, in the process, punishing tech/growth stocks. While most of the increase in the 10-year U.S. Treasury rate came from a rise in real rates, it’s interesting to note that 10-year inflation expectations increased 6bps over the week to 2.88%. At week’s end, the S&P 500 Index decreased 1.3% to 4,488.28, the Nasdaq Composite Index fell 3.9% to 13,711.00, the Dow Jones Industrial Average edged 0.3% lower to 34,723.03, the 10-year U.S. Treasury rate jumped 32bps to 2.70% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.32%.

U.S. stock markets moved slightly higher last week moving higher the first two days of the week on rising hopes of a Russia-Ukraine ceasefire, falling the next two days as hopes faded and then slightly increasing Friday on the back of an overall stronger-than-expected Non-Farm Payroll Report. Ceasefire hopes and Chinese Covid-related lockdowns helped move oil prices lower Monday and Tuesday, supporting stock prices, while rising oil prices Wednesday (on fading ceasefire hopes) pushed stock prices lower. President Biden’s announcement the U.S. would release 1 million barrels/day from the SPR for the next 6 months (beginning May) drove oil prices 7% lower but failed to push U.S. stock markets higher. Thursday’s PCE Price Index release (the Fed’s preferred inflation measure) showed continued elevated price pressures perhaps pushing stock markets lower due to increasing expectations of a more aggressive Fed. Quarter-end rebalancing and fading Russia-Ukraine ceasefire hopes may also may have helped moved markets lower. Friday’s Non-Farm Payroll showing strong job gains along with a decline in the unemployment rate to close to pre-pandemic levels also showed strong wage growth, capping stock market gains and causing the 2-year Treasury yield to rise above the 10-year Treasury yield for the first time since 2019. 10-year inflation expectations fell 16bps last week (perhaps because of falling oil prices) while 10-year real rates increased 6bps resulting in 10-year Treasury rates falling 10bps over the week. At week’s end, the S&P 500 Index increased 0.1% to 4,545.86, the Nasdaq Composite Index rose 0.7% to 14,261.50, the Dow Jones Industrial Average decreased 0.1% to 34,818.14, the 10-year U.S. Treasury rate fell 10bps to 2.39% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.2%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

The Long and Short of it, week ending 01 April 2022

04 April, 2022 | GraniteShares
U.S. stock markets moved slightly higher last week moving higher the first two days of the week on rising hopes of a Russia-Ukraine ceasefire, falling the next two days as hopes faded and then slightly increasing Friday on the back of an overall stronger-than-expected Non-Farm Payroll Report. Ceasefire hopes and Chinese Covid-related lockdowns helped move oil prices lower Monday and Tuesday, supporting stock prices, while rising oil prices Wednesday (on fading ceasefire hopes) pushed stock prices lower. President Biden’s announcement the U.S. would release 1 million barrels/day from the SPR for the next 6 months (beginning May) drove oil prices 7% lower but failed to push U.S. stock markets higher. Thursday’s PCE Price Index release (the Fed’s preferred inflation measure) showed continued elevated price pressures perhaps pushing stock markets lower due to increasing expectations of a more aggressive Fed. Quarter-end rebalancing and fading Russia-Ukraine ceasefire hopes may also may have helped moved markets lower. Friday’s Non-Farm Payroll showing strong job gains along with a decline in the unemployment rate to close to pre-pandemic levels also showed strong wage growth, capping stock market gains and causing the 2-year Treasury yield to rise above the 10-year Treasury yield for the first time since 2019. 10-year inflation expectations fell 16bps last week (perhaps because of falling oil prices) while 10-year real rates increased 6bps resulting in 10-year Treasury rates falling 10bps over the week. At week’s end, the S&P 500 Index increased 0.1% to 4,545.86, the Nasdaq Composite Index rose 0.7% to 14,261.50, the Dow Jones Industrial Average decreased 0.1% to 34,818.14, the 10-year U.S. Treasury rate fell 10bps to 2.39% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.2%.

Another up-week for U.S. stock markets with growth/tech stocks outperforming value/cyclical stocks. As in previous weeks, volatility remained high with the all three major stock indexes experiencing +/- 1% moves 3 days last week. Stock prices moved lower Monday following Fed Chair Powell’s comments inflation was too high and the Fed would not hesitate to raise rates by more than 25bps if deemed necessary. Stock markets reacted positively to these comments the remainder of week, however, choosing to interpret the comments as a vote of confidence on the ability of the U.S. economy to withstand larger rate increases. Stock markets did move lower with strongly increasing oil prices (Monday and Wednesday), perhaps indicating investor concerns of stagflation. The 10-year Treasury rate moved markedly higher last week, jumping 33bps, propelled by Chairman Powell’s hawkish comments. Interestingly, though, 10-year inflation expectations continued to move higher, climbing 8bps to just under 3% while 10-year real rates increased 25bps (to -0.5%), comprising the remainder of the 10-year Treasury rate increase. At week’s end, the S&P 500 Index increased 1.8% to 4,543.04, the Nasdaq Composite Index rose 2.0% to 14,169.30, the Dow Jones Industrial Average increased 0.3% to close at 34,861.7, the 10-year U.S. Treasury rate increased 33bp to 2.49% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.6%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

The Long and Short of it, week ending 25 Mar 2022

29 March, 2022 | GraniteShares
Another up-week for U.S. stock markets with growth/tech stocks outperforming value/cyclical stocks. As in previous weeks, volatility remained high with the all three major stock indexes experiencing +/- 1% moves 3 days last week. Stock prices moved lower Monday following Fed Chair Powell’s comments inflation was too high and the Fed would not hesitate to raise rates by more than 25bps if deemed necessary. Stock markets reacted positively to these comments the remainder of week, however, choosing to interpret the comments as a vote of confidence on the ability of the U.S. economy to withstand larger rate increases. Stock markets did move lower with strongly increasing oil prices (Monday and Wednesday), perhaps indicating investor concerns of stagflation. The 10-year Treasury rate moved markedly higher last week, jumping 33bps, propelled by Chairman Powell’s hawkish comments. Interestingly, though, 10-year inflation expectations continued to move higher, climbing 8bps to just under 3% while 10-year real rates increased 25bps (to -0.5%), comprising the remainder of the 10-year Treasury rate increase. At week’s end, the S&P 500 Index increased 1.8% to 4,543.04, the Nasdaq Composite Index rose 2.0% to 14,169.30, the Dow Jones Industrial Average increased 0.3% to close at 34,861.7, the 10-year U.S. Treasury rate increased 33bp to 2.49% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.6%.

Volatility continued last week but this time with all three major U.S. stock indexes finishing significantly higher. Uncertainty surrounding the FOMC announcement Wednesday and continued concerns regarding the war in Ukraine pushed markets lower Monday, the only down day of the week. Sharply falling oil prices (through Wednesday) and the FOMC decision to raise the Fed Funds target rate range to 0.25% - 0.50% boosted risk-on sentiment driving stock markets 1% - 2% higher each day the remainder of the week. The FOMC announcement Wednesday was deemed to hold no real surprises with the Fed holding off from increasing the Fed Funds target range by 50bps but indicating it may raise rates by 25bps in each of the remaining meetings this year while at some point beginning the process of reducing its balance sheet. Reports of progress in negotiations between the Ukraine and Russia earlier in the week faded as the week progressed and oil prices, down 12% through Wednesday, rallied sharply Thursday and Friday but nonetheless U.S. stock markets continued to rise, focusing more, instead, on the FOMC decision and announcement. The 10-year U.S. Treasury rate rose 16bps powered by a 23bp increase in real yields and a slight decline in 10-year inflation breakeven rates to 2.9%. The increase in real rates was more a result of falling haven-investment demand, however, than of the FOMC decision. For the week, the S&P 500 rose 6.2% to 4,463.09, the Nasdaq Composite Index jumped 8.2% to 13,892.84, the Dow Jones Industrial Average gained 5.5% to close at 34,749.36, the 10-year U.S. Treasury rate increased 16bp to 2.16% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.9%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

The Long and Short of it, week ending 18 Mar 2022

22 March, 2022 | GraniteShares
Volatility continued last week but this time with all three major U.S. stock indexes finishing significantly higher. Uncertainty surrounding the FOMC announcement Wednesday and continued concerns regarding the war in Ukraine pushed markets lower Monday, the only down day of the week. Sharply falling oil prices (through Wednesday) and the FOMC decision to raise the Fed Funds target rate range to 0.25% - 0.50% boosted risk-on sentiment driving stock markets 1% - 2% higher each day the remainder of the week. The FOMC announcement Wednesday was deemed to hold no real surprises with the Fed holding off from increasing the Fed Funds target range by 50bps but indicating it may raise rates by 25bps in each of the remaining meetings this year while at some point beginning the process of reducing its balance sheet. Reports of progress in negotiations between the Ukraine and Russia earlier in the week faded as the week progressed and oil prices, down 12% through Wednesday, rallied sharply Thursday and Friday but nonetheless U.S. stock markets continued to rise, focusing more, instead, on the FOMC decision and announcement. The 10-year U.S. Treasury rate rose 16bps powered by a 23bp increase in real yields and a slight decline in 10-year inflation breakeven rates to 2.9%. The increase in real rates was more a result of falling haven-investment demand, however, than of the FOMC decision. For the week, the S&P 500 rose 6.2% to 4,463.09, the Nasdaq Composite Index jumped 8.2% to 13,892.84, the Dow Jones Industrial Average gained 5.5% to close at 34,749.36, the 10-year U.S. Treasury rate increased 16bp to 2.16% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.9%.

Another turbulent week for U.S. stock markets as soaring commodity prices – a direct consequence of Russia’s invasion of Ukraine and the resulting sanctions on Russia – increased fears of stagflation and markedly slower economic growth. All three major U.S. stock indexes fell sharply Monday with the Nasdaq Composite Index shedding over 3.5% and the S&P 500 Index falling nearly 3%. Monday’s move lower was precipitated primarily by ever-higher-moving oil prices. U.S. stock markets rebounded strongly Wednesday, again predicated by oil prices (this time falling prices), with reports the UAE and Iraq would be willing to pump more oil to help offset the White House’s decision to ban Russian oil and gas imports. WTI and Brent crude oil prices fell between 12% and 13% Wednesday. Nonetheless, stock prices resumed their move lower Thursday and Friday directed by a 40-year high CPI release Thursday (increasing expectations of a more aggressive Fed), no let-up in Russia’s Ukraine Invasion and continued stagflation concerns. 10-year U.S. Treasury rates rose 26bps over the week entirely driven by increasing inflation expectations. The 10-year breakeven inflation rate closed Friday at 2.98%, up 27bps from the previous Friday while 10-year real yields remained near recent lows (reflecting flightto-quality demand) of -0.98%. For the week, the S&P 500 fell 2.9% to 4,204.31, the Nasdaq Composite Index dropped 3.5% to 12,843.81, the Dow Jones Industrial Average decreased 2.0% to 32,943.33, the 10-year U.S. Treasury rate increased 26bp to 2.00% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.5%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 11 Mar 2022

15 March, 2022 | GraniteShares
Another turbulent week for U.S. stock markets as soaring commodity prices – a direct consequence of Russia’s invasion of Ukraine and the resulting sanctions on Russia – increased fears of stagflation and markedly slower economic growth. All three major U.S. stock indexes fell sharply Monday with the Nasdaq Composite Index shedding over 3.5% and the S&P 500 Index falling nearly 3%. Monday’s move lower was precipitated primarily by ever-higher-moving oil prices. U.S. stock markets rebounded strongly Wednesday, again predicated by oil prices (this time falling prices), with reports the UAE and Iraq would be willing to pump more oil to help offset the White House’s decision to ban Russian oil and gas imports. WTI and Brent crude oil prices fell between 12% and 13% Wednesday. Nonetheless, stock prices resumed their move lower Thursday and Friday directed by a 40-year high CPI release Thursday (increasing expectations of a more aggressive Fed), no let-up in Russia’s Ukraine Invasion and continued stagflation concerns. 10-year U.S. Treasury rates rose 26bps over the week entirely driven by increasing inflation expectations. The 10-year breakeven inflation rate closed Friday at 2.98%, up 27bps from the previous Friday while 10-year real yields remained near recent lows (reflecting flightto-quality demand) of -0.98%. For the week, the S&P 500 fell 2.9% to 4,204.31, the Nasdaq Composite Index dropped 3.5% to 12,843.81, the Dow Jones Industrial Average decreased 2.0% to 32,943.33, the 10-year U.S. Treasury rate increased 26bp to 2.00% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.5%.

U.S. stock markets continued to be dominated by the Russia-Ukraine conflict (and ensuing Western sanctions) with stock prices moving lower amidst higher-volatility, a significantly stronger U.S dollar, falling longer-term U.S. Treasury rates and sharply rising commodity prices. Fed Chairman Powell’s comments Wednesday before Congress stating rate increases were likely to begin in March but would proceed with caution in light of the Russia-Ukraine conflict engendered the only positive day for stock markets with all three major stock indexes increasing more than 1 ½ percent. Oil and wheat prices, up almost 25% and 40%, respectively, on the week, increased fears of slower global economic growth adding to downward pressure on stock prices. Increased demand for haven investments moved gold prices and the U.S. dollar higher and U.S. Treasury rates lower over the week. Friday’s much stronger-than-expected Non-Farm Payroll Report was overshadowed by Russia’s bombing of a Ukraine nuclear power plant pushing oil prices 7% higher, 10-year U.S Treasury rate 10bps lower and strengthening the U.S. dollar 0.9%. For the week, the S&P 500 decreased 1.3% to 4,328.87, the Nasdaq Composite Index dropped 2.8% to 13,313.44, the Dow Jones Industrial Average lost 1.3% to close at 33,614.67, the 10-year U.S. Treasury rate fell 23bp to 1.74% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 2.1%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 04 Mar 2022

08 March, 2022 | GraniteShares
U.S. stock markets continued to be dominated by the Russia-Ukraine conflict (and ensuing Western sanctions) with stock prices moving lower amidst higher-volatility, a significantly stronger U.S dollar, falling longer-term U.S. Treasury rates and sharply rising commodity prices. Fed Chairman Powell’s comments Wednesday before Congress stating rate increases were likely to begin in March but would proceed with caution in light of the Russia-Ukraine conflict engendered the only positive day for stock markets with all three major stock indexes increasing more than 1 ½ percent. Oil and wheat prices, up almost 25% and 40%, respectively, on the week, increased fears of slower global economic growth adding to downward pressure on stock prices. Increased demand for haven investments moved gold prices and the U.S. dollar higher and U.S. Treasury rates lower over the week. Friday’s much stronger-than-expected Non-Farm Payroll Report was overshadowed by Russia’s bombing of a Ukraine nuclear power plant pushing oil prices 7% higher, 10-year U.S Treasury rate 10bps lower and strengthening the U.S. dollar 0.9%. For the week, the S&P 500 decreased 1.3% to 4,328.87, the Nasdaq Composite Index dropped 2.8% to 13,313.44, the Dow Jones Industrial Average lost 1.3% to close at 33,614.67, the 10-year U.S. Treasury rate fell 23bp to 1.74% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 2.1%.

Another tumultuous week with U.S. stock markets falling precipitously the first two days of the holidayshortened week and then posting strong gains the last two days. Thursday was a particularly volatile day with the S&P 500 Index reversing a 2.6% intraday loss to close 1.5% higher. Russia recognizing and deploying troops to separatist strongholds in Ukraine and then actually invading Ukraine Thursday drove markets lower through mid-day Thursday, dragging the S&P 500 into correction territory. Thursday’s end-of-day recovery and Friday’s move higher was jump started by additional but less-harsh-than-expected U.S., UK and European sanctions on Russia and reports Russia was willing to enter into negotiations with Ukraine but also with investor sentiment moving from risk-off to risk-on with market participants believing markets were oversold. Friday’s greaterthan-expected PCE price index release seemingly had little effect on stock or bond markets. The 10-year U.S. Treasury rate moved off its Tuesday’s lows of 1.87%, increasing 13bps through Wednesday and then dropping slightly over Thursday and Friday to finish the week 4bps higher. 10-year real yields fell 8bps over the week meaning 10-year inflation expectations increased 12bps to 2.56%. At week’s end, the S&P 500 increased 0.8% to 4,384.62, the Nasdaq Composite Index rose 1.1% to 13,694.62, the Dow Jones Industrial Average edged 0.1% lower to 34,058.55, the 10-year U.S. Treasury rate increased 4bp to 1.97% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.6%

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 25 Feb 2022

01 March, 2022 | GraniteShares
Another tumultuous week with U.S. stock markets falling precipitously the first two days of the holidayshortened week and then posting strong gains the last two days. Thursday was a particularly volatile day with the S&P 500 Index reversing a 2.6% intraday loss to close 1.5% higher. Russia recognizing and deploying troops to separatist strongholds in Ukraine and then actually invading Ukraine Thursday drove markets lower through mid-day Thursday, dragging the S&P 500 into correction territory. Thursday’s end-of-day recovery and Friday’s move higher was jump started by additional but less-harsh-than-expected U.S., UK and European sanctions on Russia and reports Russia was willing to enter into negotiations with Ukraine but also with investor sentiment moving from risk-off to risk-on with market participants believing markets were oversold. Friday’s greaterthan-expected PCE price index release seemingly had little effect on stock or bond markets. The 10-year U.S. Treasury rate moved off its Tuesday’s lows of 1.87%, increasing 13bps through Wednesday and then dropping slightly over Thursday and Friday to finish the week 4bps higher. 10-year real yields fell 8bps over the week meaning 10-year inflation expectations increased 12bps to 2.56%. At week’s end, the S&P 500 increased 0.8% to 4,384.62, the Nasdaq Composite Index rose 1.1% to 13,694.62, the Dow Jones Industrial Average edged 0.1% lower to 34,058.55, the 10-year U.S. Treasury rate increased 4bp to 1.97% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.6%

A high-volatility week with U.S. stock markets pushed and pulled by Russia-Ukraine-U.S. tensions and all but ignoring inflation and Fed monetary policy concerns. All three major stock indexes fell by 1.5% or more last week with daily moves of ¾ percent or more occurring 3 times for each index. U.S. stock prices continued their move lower Monday following the previous Friday’s sell off spurred by a White House announcement that Russia’s invasion of Ukraine was imminent. Markets reversed course Tuesday, moving higher on Russian reports of troop withdrawal from Ukraine’s border and growing hopes of de-escalation of tensions (and were mostly unchanged Wednesday following the release of FOMC minutes). Those hopes were dashed Thursday as NATO rebuffed Russian claims of troop withdrawal and as the White House again warned a Russian invasion of Ukraine was imminent causing all three major indexes to move sharply lower over Thursday and Friday. 10-year U.S. Treasury rates mirrored stock markets, rising 13bps through Tuesday with increasing hopes of Russian de-escalation and then falling 12bps the remainder of the week as those hopes faded. At week’s end, the S&P 500 fell 1.6% to 4,348,87, the Nasdaq Composite Index dropped 1.8% to 13,548.07, the Dow Jones Industrial Average lost 1.9% falling to 34,079.12, the 10-year U.S. Treasury rate increased 1bp to 1.93% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) was practically unchanged.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 18 Feb 2022

22 February, 2022 | GraniteShares
A high-volatility week with U.S. stock markets pushed and pulled by Russia-Ukraine-U.S. tensions and all but ignoring inflation and Fed monetary policy concerns. All three major stock indexes fell by 1.5% or more last week with daily moves of ¾ percent or more occurring 3 times for each index. U.S. stock prices continued their move lower Monday following the previous Friday’s sell off spurred by a White House announcement that Russia’s invasion of Ukraine was imminent. Markets reversed course Tuesday, moving higher on Russian reports of troop withdrawal from Ukraine’s border and growing hopes of de-escalation of tensions (and were mostly unchanged Wednesday following the release of FOMC minutes). Those hopes were dashed Thursday as NATO rebuffed Russian claims of troop withdrawal and as the White House again warned a Russian invasion of Ukraine was imminent causing all three major indexes to move sharply lower over Thursday and Friday. 10-year U.S. Treasury rates mirrored stock markets, rising 13bps through Tuesday with increasing hopes of Russian de-escalation and then falling 12bps the remainder of the week as those hopes faded. At week’s end, the S&P 500 fell 1.6% to 4,348,87, the Nasdaq Composite Index dropped 1.8% to 13,548.07, the Dow Jones Industrial Average lost 1.9% falling to 34,079.12, the 10-year U.S. Treasury rate increased 1bp to 1.93% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) was practically unchanged.

All three major U.S. stock indexes moved higher through Wednesday, energized by better-thanexpected earnings reports (including Amazon’s from the previous week) and buy-the-dip investor sentiment. Thursday’s much higher-than-expected CPI release, showing CPI reaching a four-decade high, reversed sentiment, pulling stock markets sharply lower. Sharply increased expectations of a more aggressive Fed raising rates 50bp in March and growing expectations of rate increases at every FOMC meeting this year drove stock prices markedly lower as investors grappled with the effects of higher rates on stock prices and with the possibility of continued elevated inflation levels. 10-year U.S. Treasury rates, reflecting these same concerns, moved 13bps higher through Thursday (closing at 2.04%) as 10-year real yields rose 8bps and 10-year inflation expectations increased 5bps. Friday’s late-afternoon White House announcement that Russia could invade Ukraine at any time diverted investor attention from Fed policy to economic and geopolitical repercussions of an invasion, dramatically increasing risk-off sentiment and driving stock prices sharply lower while increasing haven investment values such as gold, U.S. Treasuries and the U.S. dollar. All three major stock market indexes fell 1.5% or more Friday and the 10-year U.S. Treasury rate dropped 13bps to unchanged on the week. At week’s end, the S&P 500 fell 1.8% to 4,418.64, the Nasdaq Composite Index dropped 2.2% to 13,791.15, the Dow Jones Industrial Average decreased 1.0% to 34,737.47, the 10-year U.S. Treasury rate was unchanged at 1.92% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.6%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 11 Feb 2022

14 February, 2022 | GraniteShares
All three major U.S. stock indexes moved higher through Wednesday, energized by better-thanexpected earnings reports (including Amazon’s from the previous week) and buy-the-dip investor sentiment. Thursday’s much higher-than-expected CPI release, showing CPI reaching a four-decade high, reversed sentiment, pulling stock markets sharply lower. Sharply increased expectations of a more aggressive Fed raising rates 50bp in March and growing expectations of rate increases at every FOMC meeting this year drove stock prices markedly lower as investors grappled with the effects of higher rates on stock prices and with the possibility of continued elevated inflation levels. 10-year U.S. Treasury rates, reflecting these same concerns, moved 13bps higher through Thursday (closing at 2.04%) as 10-year real yields rose 8bps and 10-year inflation expectations increased 5bps. Friday’s late-afternoon White House announcement that Russia could invade Ukraine at any time diverted investor attention from Fed policy to economic and geopolitical repercussions of an invasion, dramatically increasing risk-off sentiment and driving stock prices sharply lower while increasing haven investment values such as gold, U.S. Treasuries and the U.S. dollar. All three major stock market indexes fell 1.5% or more Friday and the 10-year U.S. Treasury rate dropped 13bps to unchanged on the week. At week’s end, the S&P 500 fell 1.8% to 4,418.64, the Nasdaq Composite Index dropped 2.2% to 13,791.15, the Dow Jones Industrial Average decreased 1.0% to 34,737.47, the 10-year U.S. Treasury rate was unchanged at 1.92% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.6%.

U.S. stock markets rallied strongly through Wednesday, buoyed by strong tech-stock earnings, with the Nasdaq Composite Index climbing just under 5%. Wednesday’s after-market Meta Platforms earnings report all but reversed those gains Thursday, with Meta’s stock price plunging 26% and driving the Nasdaq Composite Index 3.7% lower. Those losses, in turn, were partially reversed Friday following Amazon’s after-market earnings report Thursday, with Amazon’s stock price surging just under 14% and the Nasdaq Composite Index increasing 1.6%. Friday’s much stronger-than-expected Non-Farm Payroll Report, along with the BoE’s rate increase Thursday and growing expectations the ECB will tighten monetary policy, drove 10-year U.S. Treasury rates 14bps higher to finish the week above 1.9%. The U.S. dollar, however, weakened significantly over the week, partly as result of the BoE tightening actions. The Nasdaq Composite Index outperformed both the S&P 500 Index and the Dow Jones Industrial Average as investors favoured growth/tech stocks over value/cyclical stocks. At week’s end, the S&P 500 Index gained 1.6% to 4,500.54, the Nasdaq Composite Index rose 2.4% to 14,098.01, the Dow Jones Industrial Average increased 0.7% to 35,089.15, the 10-year U.S. Treasury rate rose 14bp to 1.92% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 1.8%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 04 Feb 2022

08 February, 2022 | GraniteShares
U.S. stock markets rallied strongly through Wednesday, buoyed by strong tech-stock earnings, with the Nasdaq Composite Index climbing just under 5%. Wednesday’s after-market Meta Platforms earnings report all but reversed those gains Thursday, with Meta’s stock price plunging 26% and driving the Nasdaq Composite Index 3.7% lower. Those losses, in turn, were partially reversed Friday following Amazon’s after-market earnings report Thursday, with Amazon’s stock price surging just under 14% and the Nasdaq Composite Index increasing 1.6%. Friday’s much stronger-than-expected Non-Farm Payroll Report, along with the BoE’s rate increase Thursday and growing expectations the ECB will tighten monetary policy, drove 10-year U.S. Treasury rates 14bps higher to finish the week above 1.9%. The U.S. dollar, however, weakened significantly over the week, partly as result of the BoE tightening actions. The Nasdaq Composite Index outperformed both the S&P 500 Index and the Dow Jones Industrial Average as investors favoured growth/tech stocks over value/cyclical stocks. At week’s end, the S&P 500 Index gained 1.6% to 4,500.54, the Nasdaq Composite Index rose 2.4% to 14,098.01, the Dow Jones Industrial Average increased 0.7% to 35,089.15, the 10-year U.S. Treasury rate rose 14bp to 1.92% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 1.8%.

An extremely volatile week for U.S. stock markets with the Dow Jones Industrial Average swinging from down 1000 points (-3.3%) to close up 100 pts (0.3%) on Monday. Uncertainty surrounding the 2-day FOMC meeting (beginning Tuesday and ending Wednesday) drove market performance as investors battled hawkish versus dovish outcomes. The FOMC announcement, leaving rates unchanged but strongly intimating rate hikes will begin in March followed by a possible balance sheet reduction soon afterwards, squelched a 2%-3% rally in all three major stock indexes, leaving them slightly lower to unchanged on the day. Tightening concerns, heightened by Thursday’s betterthan-expected GDP release, moved markets lower Thursday only to see those concerns erased Friday with as-expected PCE Price and Employment Cost Index numbers, lifting the three major indexes 2%- 3% higher. The 10-year U.S. Treasury rate was also volatile, climbing 10bps through Thursday on aggressive-tightening concerns and then falling the remainder of the week to end unchanged. The U.S. dollar strengthened significantly last week, mainly as a result of Wednesday’s FOMC announcement. At week’s end, the S&P 500 Index increased 0.8% to 4,431.85, the Nasdaq Composite Index was practically unchanged at 13,770.6, the Dow Jones Industrial Average rose 1.3% to 34,726.20, the 10-year U.S. Treasury rate increased 1bp to 1.78% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 1.7%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 28 Jan 2022

01 February, 2022 | GraniteShares
An extremely volatile week for U.S. stock markets with the Dow Jones Industrial Average swinging from down 1000 points (-3.3%) to close up 100 pts (0.3%) on Monday. Uncertainty surrounding the 2-day FOMC meeting (beginning Tuesday and ending Wednesday) drove market performance as investors battled hawkish versus dovish outcomes. The FOMC announcement, leaving rates unchanged but strongly intimating rate hikes will begin in March followed by a possible balance sheet reduction soon afterwards, squelched a 2%-3% rally in all three major stock indexes, leaving them slightly lower to unchanged on the day. Tightening concerns, heightened by Thursday’s betterthan-expected GDP release, moved markets lower Thursday only to see those concerns erased Friday with as-expected PCE Price and Employment Cost Index numbers, lifting the three major indexes 2%- 3% higher. The 10-year U.S. Treasury rate was also volatile, climbing 10bps through Thursday on aggressive-tightening concerns and then falling the remainder of the week to end unchanged. The U.S. dollar strengthened significantly last week, mainly as a result of Wednesday’s FOMC announcement. At week’s end, the S&P 500 Index increased 0.8% to 4,431.85, the Nasdaq Composite Index was practically unchanged at 13,770.6, the Dow Jones Industrial Average rose 1.3% to 34,726.20, the 10-year U.S. Treasury rate increased 1bp to 1.78% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 1.7%.

Another volatile week for U.S. stock markets with all 3 major indexes dropping 1% or more each day of the holiday-shortened week. Investor nervousness surrounding tightening Fed monetary policy was the main driving force behind last week’s move lower, with growing concerns of higher U.S interest rates decreasing valuations of most stocks but especially of growth/tech stocks. Year-todate, the S&P 500 Index is down 7.7%, the Nasdaq Composite Index is lower by 12.0% and the Dow Jones Industrial Average is down 5.7%. Despite some notable exceptions (including Netflix and Peloton), earnings reports YTD have been predominantly positive (ie, beating expectations) helping to partially alleviate concerns of falling profit margins due to rising input costs. Thursday’s largerthan-expected jobless claims and Friday’s weaker-than-expected retail sales and existing home sales releases helped move 10-year U.S. Treasury lower but did nothing to reduce stock valuation concerns due to fears of rising rates. The 10-year U.S. Treasury rate, up over 8bps through Wednesday, actually ended the week lower with falling inflation expectations (-11bps) offsetting rising real rates (+9bps). At week’s end, the S&P 500 Index decreased 5.7% to 4,397.93, the Nasdaq Composite Index dropped 7.5% to 13,768.9, the Dow Jones Industrial Average fell 4.6% to 34,265.5, the 10-year U.S. Treasury rate decreased 2bps to 1.77% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.5%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 21 Jan 2022

24 January, 2022 | GraniteShares
Another volatile week for U.S. stock markets with all 3 major indexes dropping 1% or more each day of the holiday-shortened week. Investor nervousness surrounding tightening Fed monetary policy was the main driving force behind last week’s move lower, with growing concerns of higher U.S interest rates decreasing valuations of most stocks but especially of growth/tech stocks. Year-todate, the S&P 500 Index is down 7.7%, the Nasdaq Composite Index is lower by 12.0% and the Dow Jones Industrial Average is down 5.7%. Despite some notable exceptions (including Netflix and Peloton), earnings reports YTD have been predominantly positive (ie, beating expectations) helping to partially alleviate concerns of falling profit margins due to rising input costs. Thursday’s largerthan-expected jobless claims and Friday’s weaker-than-expected retail sales and existing home sales releases helped move 10-year U.S. Treasury lower but did nothing to reduce stock valuation concerns due to fears of rising rates. The 10-year U.S. Treasury rate, up over 8bps through Wednesday, actually ended the week lower with falling inflation expectations (-11bps) offsetting rising real rates (+9bps). At week’s end, the S&P 500 Index decreased 5.7% to 4,397.93, the Nasdaq Composite Index dropped 7.5% to 13,768.9, the Dow Jones Industrial Average fell 4.6% to 34,265.5, the 10-year U.S. Treasury rate decreased 2bps to 1.77% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.5%.

U.S. stock markets moved lower last week with the Dow Jones Industrial Average underperforming both the Nasdaq Composite Index and the S&P 500 Index. Elevated inflation levels exhibited by both CPI and PPI releases Wednesday and Thursday, respectively, capped market gains strengthening expectations of a more aggressive Fed. The S&P 500 and Nasdaq Composite Indexes, up over 1% through Wednesday, fell sharply Thursday following a PPI release showing a record high 9.7% YoY increase, pushing both indexes into negative territory for the week. Friday’s weaker-than-expected retail sales report and disappointing JPMorgan earnings guidance limited S&P 500 gains and pushed the Dow Jones Industrial Average lower. The 10-year U.S. Treasury rate rose 2bps on the week but with significant swings, falling 5bps to 1.70% Thursday and then rising 9bps to 1.79% Friday. 10-year U.S. real rates were also volatile, falling 9bps to -0.86% Tuesday and then rising 16bps the rest of the week to finish at -0.70%. At week’s end, the S&P 500 Index decreased 0.3% to 4,662.85, the Nasdaq Composite Index decreased 0.3% to 14,893.80, the Dow Jones Industrial Average fell 0.9% to 35,911.28, the 10-year U.S. Treasury rate increased 2bps to 1.79% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.6%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 14 Jan 2022

17 January, 2022 | GraniteShares
U.S. stock markets moved lower last week with the Dow Jones Industrial Average underperforming both the Nasdaq Composite Index and the S&P 500 Index. Elevated inflation levels exhibited by both CPI and PPI releases Wednesday and Thursday, respectively, capped market gains strengthening expectations of a more aggressive Fed. The S&P 500 and Nasdaq Composite Indexes, up over 1% through Wednesday, fell sharply Thursday following a PPI release showing a record high 9.7% YoY increase, pushing both indexes into negative territory for the week. Friday’s weaker-than-expected retail sales report and disappointing JPMorgan earnings guidance limited S&P 500 gains and pushed the Dow Jones Industrial Average lower. The 10-year U.S. Treasury rate rose 2bps on the week but with significant swings, falling 5bps to 1.70% Thursday and then rising 9bps to 1.79% Friday. 10-year U.S. real rates were also volatile, falling 9bps to -0.86% Tuesday and then rising 16bps the rest of the week to finish at -0.70%. At week’s end, the S&P 500 Index decreased 0.3% to 4,662.85, the Nasdaq Composite Index decreased 0.3% to 14,893.80, the Dow Jones Industrial Average fell 0.9% to 35,911.28, the 10-year U.S. Treasury rate increased 2bps to 1.79% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.6%.

Starting the new year strong, with the S&P 500 Index and the Dow Jones Industrial Average setting new records, stock prices reversed course, propelled by the release of FOMC minutes Wednesday, and headed lower the remainder of the week. The FOMC minutes revealed Fed governors were more concerned about inflation than estimated and were considering not only a faster tapering pace – leading to sooner-than-expected rate increases – but also were contemplating reducing the Fed balance sheet concomitant with rate increases. The minutes pushed 10-year U.S. Treasury rates higher and facilitated the rotation from tech/growth stocks into cyclical/value stocks with the Nasdaq Composite Index significantly underperforming both the Dow Jones Industrial Average and the S&P 500 Index. Friday’s weaker-than-expected non-farm payroll report, showing a pickup of only 200,000 jobs, did little to reverse Fed-tightening fears with both the S&P 500 and the Nasdaq Composite Indexes moving lower. 10-year U.S. real rates moved significantly higher, rising 34bps to -0.77%. At week’s end, the S&P 500 Index decreased 1.9% to 4,677.02, the Nasdaq Composite Index dropped 4.5% to 14,935.90, the Dow Jones Industrial Average decreased 0.3% to 36,231.53, the 10-year U.S. Treasury rate increased 26bps to 1.77% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.3%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 07 Jan 2022

10 January, 2022 | GraniteShares
Starting the new year strong, with the S&P 500 Index and the Dow Jones Industrial Average setting new records, stock prices reversed course, propelled by the release of FOMC minutes Wednesday, and headed lower the remainder of the week. The FOMC minutes revealed Fed governors were more concerned about inflation than estimated and were considering not only a faster tapering pace – leading to sooner-than-expected rate increases – but also were contemplating reducing the Fed balance sheet concomitant with rate increases. The minutes pushed 10-year U.S. Treasury rates higher and facilitated the rotation from tech/growth stocks into cyclical/value stocks with the Nasdaq Composite Index significantly underperforming both the Dow Jones Industrial Average and the S&P 500 Index. Friday’s weaker-than-expected non-farm payroll report, showing a pickup of only 200,000 jobs, did little to reverse Fed-tightening fears with both the S&P 500 and the Nasdaq Composite Indexes moving lower. 10-year U.S. real rates moved significantly higher, rising 34bps to -0.77%. At week’s end, the S&P 500 Index decreased 1.9% to 4,677.02, the Nasdaq Composite Index dropped 4.5% to 14,935.90, the Dow Jones Industrial Average decreased 0.3% to 36,231.53, the 10-year U.S. Treasury rate increased 26bps to 1.77% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.3%.

The S&P 500 Index and the Dow Jones Industrial Average closed higher last week but off record highs reached Wednesday. The Nasdaq Composite Index, almost unchanged on the week, suffered from falling semiconductor stock prices. For the year, the S&P 500 Index increased 26.9%, the Nasdaq Composite Index rose 21.4% and the Dow Jones Industrial Average gained 18.7%. On-off Omicron concerns, combined with relatively light volume, dictated market performance last week with greatly increasing Omicron cases weighed against vaccine booster effectiveness and the mildness of cases. It was a volatile week for the 10-year U.S. Treasury rate moving 7bps higher Wednesday and then falling 5bps Thursday. For the year, the 10-year Treasury rate increased 60bps from 0.9% to 1.5%. At week’s end, the S&P 500 Index increased 0.9% to 4,766.18, the Nasdaq Composite Index eased lower by less than 0.1% to 15,644.97, the Dow Jones Industrial Average increased 1.1% to 36.338.30, the 10-year U.S. Treasury rate increased 2bps to 1.51% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.4%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 31 Dec 2021

04 January, 2022 | GraniteShares
The S&P 500 Index and the Dow Jones Industrial Average closed higher last week but off record highs reached Wednesday. The Nasdaq Composite Index, almost unchanged on the week, suffered from falling semiconductor stock prices. For the year, the S&P 500 Index increased 26.9%, the Nasdaq Composite Index rose 21.4% and the Dow Jones Industrial Average gained 18.7%. On-off Omicron concerns, combined with relatively light volume, dictated market performance last week with greatly increasing Omicron cases weighed against vaccine booster effectiveness and the mildness of cases. It was a volatile week for the 10-year U.S. Treasury rate moving 7bps higher Wednesday and then falling 5bps Thursday. For the year, the 10-year Treasury rate increased 60bps from 0.9% to 1.5%. At week’s end, the S&P 500 Index increased 0.9% to 4,766.18, the Nasdaq Composite Index eased lower by less than 0.1% to 15,644.97, the Dow Jones Industrial Average increased 1.1% to 36.338.30, the 10-year U.S. Treasury rate increased 2bps to 1.51% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.4%.

We all have heard this saying “Do not put all your eggs in one basket”. This is one of the primary philosophies of personal finance. It means that when you’re investing you are advised not to put all your money in one asset class. This is where asset allocation comes into the picture. Asset allocation refers to the diversification of your portfolio across different broad asset classes like stocks, bonds, and cash and cash equivalent.

Topic: Financials , Technology

Publication Type: Articles

Five Things to know about Asset Allocation

30 December, 2021 | GraniteShares
We all have heard this saying “Do not put all your eggs in one basket”. This is one of the primary philosophies of personal finance. It means that when you’re investing you are advised not to put all your money in one asset class. This is where asset allocation comes into the picture. Asset allocation refers to the diversification of your portfolio across different broad asset classes like stocks, bonds, and cash and cash equivalent.

After falling over 1% Monday, all three major stock indexes rallied the remainder of the holidayshortened week to finish sharply higher and with the S&P 500 Index closing at a record high. Waning Omicron fears (spurred by reports of booster effectiveness, approval of Pfizer’s Covid pill and the mildness of Omicron cases) were the primary reason for last week’s gains with markets relief-rallying after 3 days of significant declines. Tech stocks reversed the previous week’s underperformance with the Nasdaq Composite Index markedly outperforming both the Dow Jones Industrial Average and the S&P 500 Index. The 10-year U.S. Treasury rate mirrored stock market performances, falling Monday and then rising through Friday to finish just below 1.5% while the U.S. dollar weakened as investors resumed risk-on investing. For the week, the S&P 500 Index increased 2.3% to 4,725.78, the Nasdaq Composite Index rose 3.2% to 15,653.37, the Dow Jones Industrial Average increased 1.7% to 35,950.63, the 10-year U.S. Treasury rate increased 8bps to 1.49% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.6%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 24 Dec 2021

28 December, 2021 | GraniteShares
After falling over 1% Monday, all three major stock indexes rallied the remainder of the holidayshortened week to finish sharply higher and with the S&P 500 Index closing at a record high. Waning Omicron fears (spurred by reports of booster effectiveness, approval of Pfizer’s Covid pill and the mildness of Omicron cases) were the primary reason for last week’s gains with markets relief-rallying after 3 days of significant declines. Tech stocks reversed the previous week’s underperformance with the Nasdaq Composite Index markedly outperforming both the Dow Jones Industrial Average and the S&P 500 Index. The 10-year U.S. Treasury rate mirrored stock market performances, falling Monday and then rising through Friday to finish just below 1.5% while the U.S. dollar weakened as investors resumed risk-on investing. For the week, the S&P 500 Index increased 2.3% to 4,725.78, the Nasdaq Composite Index rose 3.2% to 15,653.37, the Dow Jones Industrial Average increased 1.7% to 35,950.63, the 10-year U.S. Treasury rate increased 8bps to 1.49% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.6%.

U.S. stock prices moved lower with all 3 major stock indexes decreasing every day last week except for Wednesday. Tech stocks sharply underperformed last week as evidenced by the Nasdaq Composite Index which fell almost twice as much as the Dow Jones Industrial Average. Uncertainty surrounding the outcome of the 2-day FOMC meeting ending Wednesday, exacerbated by Tuesday’s record high PPI release, and concerns regarding the increase in the number of Omicron infections, pushed markets 1% to 1.5% lower through Tuesday. Following Wednesday’s FOMC announcement that the rate of tapering would be doubled along with a dot-plot projection of three 25bp rate increases in 2022, stock prices moved sharply higher. Wednesday’s “buy-the-fact” rally, however, was short lived as investors re-examined the potential consequence of tighter monetary policy going forward, pushing markets lower and furthering the rotation from tech/growth stocks into value stocks. The 10-year U.S. Treasury rate also moved lower on the week, mainly due to falling inflation expectations in light of more aggressive Fed tightening. For the week, the S&P 500 Index decreased 1.9% to 4,620.64, the Nasdaq Composite Index fell 2.9% to 15,169.68, the Dow Jones Industrial Average decreased 1.7% to 35,366.56, the 10-year U.S. Treasury rate fell 7bps to 1.41% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.5%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 17 Dec 2021

20 December, 2021 | GraniteShares
U.S. stock prices moved lower with all 3 major stock indexes decreasing every day last week except for Wednesday. Tech stocks sharply underperformed last week as evidenced by the Nasdaq Composite Index which fell almost twice as much as the Dow Jones Industrial Average. Uncertainty surrounding the outcome of the 2-day FOMC meeting ending Wednesday, exacerbated by Tuesday’s record high PPI release, and concerns regarding the increase in the number of Omicron infections, pushed markets 1% to 1.5% lower through Tuesday. Following Wednesday’s FOMC announcement that the rate of tapering would be doubled along with a dot-plot projection of three 25bp rate increases in 2022, stock prices moved sharply higher. Wednesday’s “buy-the-fact” rally, however, was short lived as investors re-examined the potential consequence of tighter monetary policy going forward, pushing markets lower and furthering the rotation from tech/growth stocks into value stocks. The 10-year U.S. Treasury rate also moved lower on the week, mainly due to falling inflation expectations in light of more aggressive Fed tightening. For the week, the S&P 500 Index decreased 1.9% to 4,620.64, the Nasdaq Composite Index fell 2.9% to 15,169.68, the Dow Jones Industrial Average decreased 1.7% to 35,366.56, the 10-year U.S. Treasury rate fell 7bps to 1.41% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.5%.

Leverage is using a smaller portion of your capital to gain larger trading position exposure called margin trading. Margin trading or margin finance allows investors to open a trading position with a broker using a small amount of capital to take a much larger position in the market. Leverage can be used in various financial markets like stocks, indices, Exchange-Traded Products (ETPs), forex markets, treasuries, and commodities.

Topic: Financials

Publication Type: Articles

Understanding Leverage Trading

09 December, 2021 | GraniteShares
Leverage is using a smaller portion of your capital to gain larger trading position exposure called margin trading. Margin trading or margin finance allows investors to open a trading position with a broker using a small amount of capital to take a much larger position in the market. Leverage can be used in various financial markets like stocks, indices, Exchange-Traded Products (ETPs), forex markets, treasuries, and commodities.

Another volatile week for U.S. stock markets with uncertainty surrounding the Omicron Covid variant and a potentially more aggressive Fed knee-jerking stock prices lower throughout the week. Monday’s sharp rebound from the previous Friday’s selloff was short-lived with re-emerging Omicron fears compounded by Fed Chairman Powell’s hawkish testimony before Congress on Tuesday. Acknowledging current inflation could no longer be described as “transitory” and positing the pace of tapering could be increased, Chairman Powell’s comments drove stock prices significantly lower Tuesday. Comments from Moderna’s CEO questioning the effectiveness of current vaccines against the Omicron variant added to Covid-related concerns. Wednesday’s report of the U.S’s first Omicron case drove stock markets lower once again though all of Wednesday’s losses were recouped Thursday as investors re-examined Covid-related concerns. Friday’s NonFarm Payroll report, showing a meager gain of 211,000 jobs but also a reporting a lower unemployment rate (combined with an increase in the labor participation rate), seemed to increase investor uncertainty with stock markets again ending sharply lower on the day. The 10-year U.S Treasury rate moved lockstep with stock markets, increasing when stock prices increased and falling when prices fell, reflecting the view a more aggressive Fed would act to slow growth resulting in lower rates and stock prices. Also of note was the Nasdaq Composite Index fared the worst last week, seemingly reflecting greater investor concern of slower growth due to faster Fed tightening than to Omicron. For the week, the S&P 500 Index decreased 1.2% to 4,538.43, the Nasdaq Composite Index fell 2.6% to 15,085.50, the Dow Jones Industrial Average declined 0.9% to 34,579.55, the 10-year U.S. Treasury rate decreased 12bps to 1.36% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened less than 0.1%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 03 Dec 2021

07 December, 2021 | GraniteShares
Another volatile week for U.S. stock markets with uncertainty surrounding the Omicron Covid variant and a potentially more aggressive Fed knee-jerking stock prices lower throughout the week. Monday’s sharp rebound from the previous Friday’s selloff was short-lived with re-emerging Omicron fears compounded by Fed Chairman Powell’s hawkish testimony before Congress on Tuesday. Acknowledging current inflation could no longer be described as “transitory” and positing the pace of tapering could be increased, Chairman Powell’s comments drove stock prices significantly lower Tuesday. Comments from Moderna’s CEO questioning the effectiveness of current vaccines against the Omicron variant added to Covid-related concerns. Wednesday’s report of the U.S’s first Omicron case drove stock markets lower once again though all of Wednesday’s losses were recouped Thursday as investors re-examined Covid-related concerns. Friday’s NonFarm Payroll report, showing a meager gain of 211,000 jobs but also a reporting a lower unemployment rate (combined with an increase in the labor participation rate), seemed to increase investor uncertainty with stock markets again ending sharply lower on the day. The 10-year U.S Treasury rate moved lockstep with stock markets, increasing when stock prices increased and falling when prices fell, reflecting the view a more aggressive Fed would act to slow growth resulting in lower rates and stock prices. Also of note was the Nasdaq Composite Index fared the worst last week, seemingly reflecting greater investor concern of slower growth due to faster Fed tightening than to Omicron. For the week, the S&P 500 Index decreased 1.2% to 4,538.43, the Nasdaq Composite Index fell 2.6% to 15,085.50, the Dow Jones Industrial Average declined 0.9% to 34,579.55, the 10-year U.S. Treasury rate decreased 12bps to 1.36% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened less than 0.1%.

An eventful, holiday-shortened trading week with concerns of a more aggressive Fed quickly and suddenly laid to the side as fears of a more contagious South African Covid strain dominated markets Friday. Fed Chairman Powell’s renomination Monday, an over 50-year low in jobless claims, unexpectedly strong home sales, hawkish comments from Fed Governors and FOMC minutes expressing inflation concerns increased expectations the Fed may tighten monetary policy more aggressively, advancing its timetable for raising rates. As a result, 10-year U.S. Treasury rates moved 10bps higher and the Nasdaq Composite Index – the most sensitive to rising interest rates – fell 1.3%, both through Wednesday (the S&P 500 Index was unchanged and the Dow Jones Industrial Average was up ½ percent through Wednesday. News of a potentially more infectious Covid strain, originating from South Africa, drastically increased Covid-related lockdown concerns, driving stock markets and interest rates significantly lower with all 3 major indexes falling near 2.5% and the 10- year U.S Treasury rate dropping 16bps from Wednesday’s closing levels. Interestingly, the U.S. dollar, stronger by almost 1% through Wednesday, weakened significantly Friday to end the week almost unchanged. At week’s end, the S&P 500 Index decreased 2.2% to 4,594.62, the Nasdaq Composite Index fell 3.5% to 15,491.70, the Dow Jones Industrial Average declined 2.0% to 34,908.10, the 10-year U.S. Treasury rate decreased 7bps to 1.48% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened less than 0.1%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 26 Nov 2021

30 November, 2021 | GraniteShares
An eventful, holiday-shortened trading week with concerns of a more aggressive Fed quickly and suddenly laid to the side as fears of a more contagious South African Covid strain dominated markets Friday. Fed Chairman Powell’s renomination Monday, an over 50-year low in jobless claims, unexpectedly strong home sales, hawkish comments from Fed Governors and FOMC minutes expressing inflation concerns increased expectations the Fed may tighten monetary policy more aggressively, advancing its timetable for raising rates. As a result, 10-year U.S. Treasury rates moved 10bps higher and the Nasdaq Composite Index – the most sensitive to rising interest rates – fell 1.3%, both through Wednesday (the S&P 500 Index was unchanged and the Dow Jones Industrial Average was up ½ percent through Wednesday. News of a potentially more infectious Covid strain, originating from South Africa, drastically increased Covid-related lockdown concerns, driving stock markets and interest rates significantly lower with all 3 major indexes falling near 2.5% and the 10- year U.S Treasury rate dropping 16bps from Wednesday’s closing levels. Interestingly, the U.S. dollar, stronger by almost 1% through Wednesday, weakened significantly Friday to end the week almost unchanged. At week’s end, the S&P 500 Index decreased 2.2% to 4,594.62, the Nasdaq Composite Index fell 3.5% to 15,491.70, the Dow Jones Industrial Average declined 2.0% to 34,908.10, the 10-year U.S. Treasury rate decreased 7bps to 1.48% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened less than 0.1%.

Divergence in the major stock indexes last week with the S&P 500 and Nasdaq Composite Indexes increasing and the Dow Jones Industrial Average falling. A better-than-expected retail sales release and strong earnings reports moved markets higher through Tuesday though re-emerging fears of inflation and a more aggressive Fed pressured markets lower on Wednesday. The 10-year U.S. Treasury rate behaved oppositely, increasing 7bps through Tuesday and then falling almost 6bps Wednesday with increasing expectations of a more aggressive Fed precipitating slower economic growth. Rising Covid cases in Europe and Austria’s lockdown announcement increased concerns of slowing global economic growth and raised the possibility of rising Covid cases in the U.S. These concerns pushed the Nasdaq Composite Index higher (stay-at-home stocks benefiting), the Dow Jones Industrial Average lower (lockdown-free stocks hurt) and strengthened the U.S. dollar (because of its appeal as a safe-haven investment and because of likely continued easy-money policies in Europe in the face of renewed lockdowns). At week’s end, the S&P 500 Index increased 0.3% to 4,697.96, the Nasdaq Composite Index rose 1.2% to 16,057.40, the Dow Jones Industrial Average fell 1.4% to 35,602.18, the 10-year U.S. Treasury rate decreased 2bps to 1.55% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.9%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 19 Nov 2021

23 November, 2021 | GraniteShares
Divergence in the major stock indexes last week with the S&P 500 and Nasdaq Composite Indexes increasing and the Dow Jones Industrial Average falling. A better-than-expected retail sales release and strong earnings reports moved markets higher through Tuesday though re-emerging fears of inflation and a more aggressive Fed pressured markets lower on Wednesday. The 10-year U.S. Treasury rate behaved oppositely, increasing 7bps through Tuesday and then falling almost 6bps Wednesday with increasing expectations of a more aggressive Fed precipitating slower economic growth. Rising Covid cases in Europe and Austria’s lockdown announcement increased concerns of slowing global economic growth and raised the possibility of rising Covid cases in the U.S. These concerns pushed the Nasdaq Composite Index higher (stay-at-home stocks benefiting), the Dow Jones Industrial Average lower (lockdown-free stocks hurt) and strengthened the U.S. dollar (because of its appeal as a safe-haven investment and because of likely continued easy-money policies in Europe in the face of renewed lockdowns). At week’s end, the S&P 500 Index increased 0.3% to 4,697.96, the Nasdaq Composite Index rose 1.2% to 16,057.40, the Dow Jones Industrial Average fell 1.4% to 35,602.18, the 10-year U.S. Treasury rate decreased 2bps to 1.55% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.9%.

Monday saw all three major stock indexes close at record highs supported by Congress’ passage of the $1+ trillion infrastructure package and continuing the previous week’s strong performance. An as-expected-but-high PPI release Tuesday pushed markets lower with renewed concerns the Fed may find it necessary to tighten monetary policy more aggressively. These concerns were increased with Wednesday’s much higher-than-expected CPI release, pushing stock prices lower and lifting 10- year U.S. Treasury rates 13bps higher. Stock markets moved higher the remainder of the week, supported by strong earnings releases and as investors, assisted by a sharply lower consumer sentiment reading, seemingly reduced their concerns of a more aggressive Fed. At week’s end, the S&P 500 Index decreased 0.3% to 4,682.85, the Nasdaq Composite Index fell 0.7% to 15,861.00, the Dow Jones Industrial Average dropped 0.6% to 36,100.37, the 10-year U.S. Treasury rate increased 12bps to 1.57% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.8%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 12 Nov 2021

16 November, 2021 | GraniteShares
Monday saw all three major stock indexes close at record highs supported by Congress’ passage of the $1+ trillion infrastructure package and continuing the previous week’s strong performance. An as-expected-but-high PPI release Tuesday pushed markets lower with renewed concerns the Fed may find it necessary to tighten monetary policy more aggressively. These concerns were increased with Wednesday’s much higher-than-expected CPI release, pushing stock prices lower and lifting 10- year U.S. Treasury rates 13bps higher. Stock markets moved higher the remainder of the week, supported by strong earnings releases and as investors, assisted by a sharply lower consumer sentiment reading, seemingly reduced their concerns of a more aggressive Fed. At week’s end, the S&P 500 Index decreased 0.3% to 4,682.85, the Nasdaq Composite Index fell 0.7% to 15,861.00, the Dow Jones Industrial Average dropped 0.6% to 36,100.37, the 10-year U.S. Treasury rate increased 12bps to 1.57% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.8%.

U.S. stock markets powered higher again last week with all 3 major indexes setting record highs. While strong earnings and economic reports helped move stock markets higher, Wednesday’s FOMC announcement also contributed to this week’s increase. The Fed, as expected, announced it would begin reducing its $120 billion/month bond buyback program by $15 billion/month beginning this month (subject to changes if needed) but also indicated the timing of rate increases was uncertain given the Fed’s view its full-employment goals have not been reached, increasing sentiment the Fed would maintain its easy-money policies longer than expected. Friday’s October Non-Farm Payroll report, stronger than expected with respect to jobs and the unemployment rate, seemingly had little effect on markets with investor uncertainty regarding the strength of future job gains and an unchanged labour participation rate overriding the headline strength of the report. The 10-year U.S. Treasury rate, reflecting this sentiment, ended the week 11bps lower with almost all the decrease coming from falling 10-year real rates (down 8bps over the week). The U.S. dollar, stronger on the week, rose on the back of Thursday’s BoE announcement leaving rates unchanged. At week’s end, the S&P 500 Index rose 2.0% to 4,697.53, the Nasdaq Composite Index gained 3.0% to 15,971.60, the Dow Jones Industrial Average increased 1.4% to 36,329.07, the 10-year U.S. Treasury rate fell 11bps to 1.45% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.2%

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 05 Nov 2021

09 November, 2021 | GraniteShares
U.S. stock markets powered higher again last week with all 3 major indexes setting record highs. While strong earnings and economic reports helped move stock markets higher, Wednesday’s FOMC announcement also contributed to this week’s increase. The Fed, as expected, announced it would begin reducing its $120 billion/month bond buyback program by $15 billion/month beginning this month (subject to changes if needed) but also indicated the timing of rate increases was uncertain given the Fed’s view its full-employment goals have not been reached, increasing sentiment the Fed would maintain its easy-money policies longer than expected. Friday’s October Non-Farm Payroll report, stronger than expected with respect to jobs and the unemployment rate, seemingly had little effect on markets with investor uncertainty regarding the strength of future job gains and an unchanged labour participation rate overriding the headline strength of the report. The 10-year U.S. Treasury rate, reflecting this sentiment, ended the week 11bps lower with almost all the decrease coming from falling 10-year real rates (down 8bps over the week). The U.S. dollar, stronger on the week, rose on the back of Thursday’s BoE announcement leaving rates unchanged. At week’s end, the S&P 500 Index rose 2.0% to 4,697.53, the Nasdaq Composite Index gained 3.0% to 15,971.60, the Dow Jones Industrial Average increased 1.4% to 36,329.07, the 10-year U.S. Treasury rate fell 11bps to 1.45% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.2%

Another strong week for U.S. stock markets with all three major indexes posting record levels. Strong earnings reports again were the primary factor moving markets higher despite disappointing Apple and Amazon earning releases and a weaker-than-expected increase in GDP. All three major stock indexes moved higher almost every day last week, only pausing Wednesday. Thursday’s weaker-than-expected GDP release (along with Apple’s and Amazon’s disappointing earnings reports) and Friday’s as-expected PCE price index release highlighted concerns surrounding persistently high inflation caused by input/labor shortages and production and shipping bottlenecks and slowing economic activity. 10-year U.S. Treasury rates fell 8bps over the week, perhaps reflecting the growing conviction the Fed will begin moderately tightening monetary policy resulting in slowing economic growth. The U.S dollar, weaker by 0.3% through Thursday, strengthened over 0.8% Friday following the release of the Employment Cost Index and Personal Income and Outlays reports, perhaps reflecting the same conviction. At week’s end, the S&P 500 Index climbed 1.3% to 4,605.38, the Nasdaq Composite Index gained 2.7% to 15,498.40, the Dow Jones Industrial Average increased 0.4% to 35,819.59, the 10-year U.S. Treasury rate fell 8bps to 1.56% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.5%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 29 Oct 2021

01 November, 2021 | GraniteShares
Another strong week for U.S. stock markets with all three major indexes posting record levels. Strong earnings reports again were the primary factor moving markets higher despite disappointing Apple and Amazon earning releases and a weaker-than-expected increase in GDP. All three major stock indexes moved higher almost every day last week, only pausing Wednesday. Thursday’s weaker-than-expected GDP release (along with Apple’s and Amazon’s disappointing earnings reports) and Friday’s as-expected PCE price index release highlighted concerns surrounding persistently high inflation caused by input/labor shortages and production and shipping bottlenecks and slowing economic activity. 10-year U.S. Treasury rates fell 8bps over the week, perhaps reflecting the growing conviction the Fed will begin moderately tightening monetary policy resulting in slowing economic growth. The U.S dollar, weaker by 0.3% through Thursday, strengthened over 0.8% Friday following the release of the Employment Cost Index and Personal Income and Outlays reports, perhaps reflecting the same conviction. At week’s end, the S&P 500 Index climbed 1.3% to 4,605.38, the Nasdaq Composite Index gained 2.7% to 15,498.40, the Dow Jones Industrial Average increased 0.4% to 35,819.59, the 10-year U.S. Treasury rate fell 8bps to 1.56% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.5%.

U.S. stock markets moved higher last week with the Dow Jones Industrial Average closing at a record high and the S&P 500 Index finishing slightly off its record high set Thursday. Strong earnings reports were the primary driver behind last week’s gains, overcoming concerns of lower profits due to rising input and labour costs and production and shipping bottlenecks. Lower-than-expected jobless claims, reported Thursday, also helped move markets higher. Three notable earnings misses – Intel, Snap and IBM – helped push the Nasdaq Composite Index and the S&P 500 Index lower Friday though analysts mostly considered these misses as outliers either because they were considered exceptions (IBM) or because of the unique, specific nature of the misses (Snap, Intel). Better-than-expected earnings reports, however, did not alleviate concerns of persistent inflation, driving the 10-year U.S.Treasury rate 12bps higher through Thursday. The rate fell almost 6bps Friday, likely reacting to weaker-than-expected earnings reports. At week’s end, the S&P 500 Index rose 1.6% to 4,544.90, the Nasdaq Composite Index increased 1.3% to 15,090.20, the Dow Jones Industrial Average gained 1.1% to 35,677.02, the 10-year U.S. Treasury rate rose 7bps to 1.64% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.3%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 22 Oct 2021

26 October, 2021 | GraniteShares
U.S. stock markets moved higher last week with the Dow Jones Industrial Average closing at a record high and the S&P 500 Index finishing slightly off its record high set Thursday. Strong earnings reports were the primary driver behind last week’s gains, overcoming concerns of lower profits due to rising input and labour costs and production and shipping bottlenecks. Lower-than-expected jobless claims, reported Thursday, also helped move markets higher. Three notable earnings misses – Intel, Snap and IBM – helped push the Nasdaq Composite Index and the S&P 500 Index lower Friday though analysts mostly considered these misses as outliers either because they were considered exceptions (IBM) or because of the unique, specific nature of the misses (Snap, Intel). Better-than-expected earnings reports, however, did not alleviate concerns of persistent inflation, driving the 10-year U.S.Treasury rate 12bps higher through Thursday. The rate fell almost 6bps Friday, likely reacting to weaker-than-expected earnings reports. At week’s end, the S&P 500 Index rose 1.6% to 4,544.90, the Nasdaq Composite Index increased 1.3% to 15,090.20, the Dow Jones Industrial Average gained 1.1% to 35,677.02, the 10-year U.S. Treasury rate rose 7bps to 1.64% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.3%.

U.S. stock markets moved lower early last week pressured by inflation concerns arising from surging oil prices and continued shipping and production bottlenecks as well as by the advent of 3rd quarter earnings reports (the IMF’s lower global growth forecast Tuesday also pressured markets). Down close to 1% through Tuesday, U.S stock markets rallied the remainder of the week powered by better-than-expected bank earnings and stronger-than-expected retail sales and jobless claims. A record high CPI release Wednesday, while increasing expectations of Fed tapering sooner than later (confirmed by the FOMC minutes released Wednesday), seemingly had little effect on markets. Thursday’s lower-than-expected PPI release may have eased those expectations perhaps helping U.S stock markets to power 1.5% to 1.7% higher. The 10-year U.S. Treasury rate, reacting conversely to Fed tapering expectations, fell 10bps through Thursday but rose 6bps Friday to finish the week lower by 4bps. Interestingly the U.S dollar (as measured by the DXY Index), stronger by ½ percent through Tuesday, weakened almost ½ percent Wednesday and finished the week lower by 0.1%. For the week, the S&P 500 Index rose 1.8% to 4,471.37, the Nasdaq Composite Index jumped 2.2% to 14,897.30, the Dow Jones Industrial Average gained 1.6% to 35,295.48, the 10-year U.S. Treasury rate fell 4bps to 1.57% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.1%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 15 Oct 2021

19 October, 2021 | GraniteShares
U.S. stock markets moved lower early last week pressured by inflation concerns arising from surging oil prices and continued shipping and production bottlenecks as well as by the advent of 3rd quarter earnings reports (the IMF’s lower global growth forecast Tuesday also pressured markets). Down close to 1% through Tuesday, U.S stock markets rallied the remainder of the week powered by better-than-expected bank earnings and stronger-than-expected retail sales and jobless claims. A record high CPI release Wednesday, while increasing expectations of Fed tapering sooner than later (confirmed by the FOMC minutes released Wednesday), seemingly had little effect on markets. Thursday’s lower-than-expected PPI release may have eased those expectations perhaps helping U.S stock markets to power 1.5% to 1.7% higher. The 10-year U.S. Treasury rate, reacting conversely to Fed tapering expectations, fell 10bps through Thursday but rose 6bps Friday to finish the week lower by 4bps. Interestingly the U.S dollar (as measured by the DXY Index), stronger by ½ percent through Tuesday, weakened almost ½ percent Wednesday and finished the week lower by 0.1%. For the week, the S&P 500 Index rose 1.8% to 4,471.37, the Nasdaq Composite Index jumped 2.2% to 14,897.30, the Dow Jones Industrial Average gained 1.6% to 35,295.48, the 10-year U.S. Treasury rate fell 4bps to 1.57% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.1%.

A bumpy start last week with major U.S. stock indexes falling sharply and with the Nasdaq Composite Index faring the worst by far. Increasing inflation and Fed-tapering concerns, spurred by Friday’s PCE price index release, combined with a debt-ceiling overhang, pushed 10-year U.S. Treasury rates higher and stock prices – especially tech stock prices – lower (Facebook’s unprecedented outage Monday also affected the tech-heavy Nasdaq Composite Index). Stock markets rebounded sharply Tuesday and then continued higher through Thursday buoyed by a better-than-expected ISM services index release, falling weekly and continued jobless claims and substantive progress on a short-term debt ceiling extension. Friday’s much weaker-than-expected payroll report moved stock markets slightly lower while at the same time pulling the 10-year U.S. Treasury rate above 1.6%. For the week, the S&P 500 Index rose 0.8% to 4,392.36, the Nasdaq Composite Index increased 0.1% to 14,579.50, the Dow Jones Industrial Average gained 1.2% to 34,746.71, the 10-year U.S. Treasury rate jumped 15bp to 1.61% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) was practically unchanged.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 08 Oct 2021

11 October, 2021 | GraniteShares
A bumpy start last week with major U.S. stock indexes falling sharply and with the Nasdaq Composite Index faring the worst by far. Increasing inflation and Fed-tapering concerns, spurred by Friday’s PCE price index release, combined with a debt-ceiling overhang, pushed 10-year U.S. Treasury rates higher and stock prices – especially tech stock prices – lower (Facebook’s unprecedented outage Monday also affected the tech-heavy Nasdaq Composite Index). Stock markets rebounded sharply Tuesday and then continued higher through Thursday buoyed by a better-than-expected ISM services index release, falling weekly and continued jobless claims and substantive progress on a short-term debt ceiling extension. Friday’s much weaker-than-expected payroll report moved stock markets slightly lower while at the same time pulling the 10-year U.S. Treasury rate above 1.6%. For the week, the S&P 500 Index rose 0.8% to 4,392.36, the Nasdaq Composite Index increased 0.1% to 14,579.50, the Dow Jones Industrial Average gained 1.2% to 34,746.71, the 10-year U.S. Treasury rate jumped 15bp to 1.61% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) was practically unchanged.

Concerns of central bank tightening and growing inflation concerns precipitated steep declines in U.S. stock markets with all three major U.S. stock indexes falling 3% or more through Thursday. Fed Chairman Powell’s prepared remarks before Congress on Tuesday reiterated remarks made after the most recent FOMC meeting, saying the Fed could begin tapering in November and that higher inflation could last longer than initially anticipated before moderating toward the Fed’s 2% goal, uneased stock and bond markets with the 10-year U.S. Treasury rate increasing over 9bps through Tuesday, and U.S. stock markets dropping between 1.5% and 3%. Debt ceiling and government shutdown concerns and President Biden’s $3.5 trillion spending bill also unnerved markets with Congress at a debt-ceiling impasse leading to warnings of default and credit rating downgrades. Stock markets rebounded Friday with investor risk-on appetite apparently returning with Congress approving a stopgap, government-funding bill and as the U.S dollar fell from its almost 1-year high and the 10-year U.S. Treasury rate finished the week only slightly higher. The PCE price index, released Friday, increased an as-expected 3.5%, perhaps helping to reduce inflation concerns. For the week, the S&P 500 Index fell 2.2% to 4,357.05, the Nasdaq Composite Index dropped 3.2% to 14,566.70, the Dow Jones Industrial Average decreased 1.4% to 34,327.45, the 10-year U.S. Treasury rate increased 1bp to 1.46% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.8% percent.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 01 Oct 2021

05 October, 2021 | GraniteShares
Concerns of central bank tightening and growing inflation concerns precipitated steep declines in U.S. stock markets with all three major U.S. stock indexes falling 3% or more through Thursday. Fed Chairman Powell’s prepared remarks before Congress on Tuesday reiterated remarks made after the most recent FOMC meeting, saying the Fed could begin tapering in November and that higher inflation could last longer than initially anticipated before moderating toward the Fed’s 2% goal, uneased stock and bond markets with the 10-year U.S. Treasury rate increasing over 9bps through Tuesday, and U.S. stock markets dropping between 1.5% and 3%. Debt ceiling and government shutdown concerns and President Biden’s $3.5 trillion spending bill also unnerved markets with Congress at a debt-ceiling impasse leading to warnings of default and credit rating downgrades. Stock markets rebounded Friday with investor risk-on appetite apparently returning with Congress approving a stopgap, government-funding bill and as the U.S dollar fell from its almost 1-year high and the 10-year U.S. Treasury rate finished the week only slightly higher. The PCE price index, released Friday, increased an as-expected 3.5%, perhaps helping to reduce inflation concerns. For the week, the S&P 500 Index fell 2.2% to 4,357.05, the Nasdaq Composite Index dropped 3.2% to 14,566.70, the Dow Jones Industrial Average decreased 1.4% to 34,327.45, the 10-year U.S. Treasury rate increased 1bp to 1.46% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.8% percent.

U.S. stock markets began the week on uneasy terms with Evergrande contagion concerns and FOMC announcement anxiety pushing all three major indexes about 2% lower. U.S stock markets, stagnating on Tuesday, moved higher the rest of the week, fortified by a somewhat-as-exprected FOMC announcement and optimism Evergrande would avoid immediate default. Wednesday’s FOMC announcement indicated the Fed would likely begin tapering November (with bond buybacks to be eliminated by June next year) with at least one rate hike in 2022 followed by another 2-3 hikes in 2023. The Fed’s willingness to slightly and gradually tighten its ultra-easy monetary policy signalled it believed the U.S. economy was strong and at the same time eased investor concerns of possible fallout from Fed inaction. Interestingly, the 10-year U.S Treasury rate, down 6bps through Wednesday, jumped 13bps higher Thursday and another 2bp Friday perhaps as a delayed reaction to the FOMC announcement and perhaps as a result of lessened Evergrande contagion fears. For the week, the S&P 500 Index rose 0.5% to 4,455.48, the Nasdaq Composite Index was almost unchanged at 15,047.70, the Dow Jones Industrial Average increased 0.6% to 34,797.60, the 10-year U.S. Treasury rate increased 9bps to 1.45% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.1% percent.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 24 Sep 2021

27 September, 2021 | GraniteShares
U.S. stock markets began the week on uneasy terms with Evergrande contagion concerns and FOMC announcement anxiety pushing all three major indexes about 2% lower. U.S stock markets, stagnating on Tuesday, moved higher the rest of the week, fortified by a somewhat-as-exprected FOMC announcement and optimism Evergrande would avoid immediate default. Wednesday’s FOMC announcement indicated the Fed would likely begin tapering November (with bond buybacks to be eliminated by June next year) with at least one rate hike in 2022 followed by another 2-3 hikes in 2023. The Fed’s willingness to slightly and gradually tighten its ultra-easy monetary policy signalled it believed the U.S. economy was strong and at the same time eased investor concerns of possible fallout from Fed inaction. Interestingly, the 10-year U.S Treasury rate, down 6bps through Wednesday, jumped 13bps higher Thursday and another 2bp Friday perhaps as a delayed reaction to the FOMC announcement and perhaps as a result of lessened Evergrande contagion fears. For the week, the S&P 500 Index rose 0.5% to 4,455.48, the Nasdaq Composite Index was almost unchanged at 15,047.70, the Dow Jones Industrial Average increased 0.6% to 34,797.60, the 10-year U.S. Treasury rate increased 9bps to 1.45% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.1% percent.

U.S. stock markets were mainly higher last week with the Nasdaq Composite Index closing at record levels and the S&P 500 Index closing just below record highs but with the Dow Jones Industrial Average finishing lower on the week. Growth stocks performed better than value stocks, buoyed by disappointing payroll reports and flagging consumer confidence – both attributed to Delta variant-related concerns and restrictions. Wednesday’s much weaker-than-expected ADP payroll report was substantiated by Friday’s much weaker-than-expected U.S. non-farm payroll report with markets overall reacting to the “bad news” as “good news” believing weak economic data would forestall the Fed from tightening monetary policy anytime soon. The 10-year U.S. Treasury reacted oppositely, increasing 4bps after the release of U.S. non-farm payroll report perhaps reflecting inflation concerns given the likelihood of the Fed to continue with its ultra-accommodative monetary policy and the U.S. dollar weakened, seemingly reflecting those same concerns. For the week, the S&P 500 Index increased 0.6% to 4,535.43, the Nasdaq Composite Index rose 1.6% to 15,363.50, the Dow Jones Industrial Average fell 0.2% to 35,369.35, the 10-year U.S. Treasury rate increased 2bps to 1.33% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.7% percent.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 03 Sep 2021

07 September, 2021 | GraniteShares
U.S. stock markets were mainly higher last week with the Nasdaq Composite Index closing at record levels and the S&P 500 Index closing just below record highs but with the Dow Jones Industrial Average finishing lower on the week. Growth stocks performed better than value stocks, buoyed by disappointing payroll reports and flagging consumer confidence – both attributed to Delta variant-related concerns and restrictions. Wednesday’s much weaker-than-expected ADP payroll report was substantiated by Friday’s much weaker-than-expected U.S. non-farm payroll report with markets overall reacting to the “bad news” as “good news” believing weak economic data would forestall the Fed from tightening monetary policy anytime soon. The 10-year U.S. Treasury reacted oppositely, increasing 4bps after the release of U.S. non-farm payroll report perhaps reflecting inflation concerns given the likelihood of the Fed to continue with its ultra-accommodative monetary policy and the U.S. dollar weakened, seemingly reflecting those same concerns. For the week, the S&P 500 Index increased 0.6% to 4,535.43, the Nasdaq Composite Index rose 1.6% to 15,363.50, the Dow Jones Industrial Average fell 0.2% to 35,369.35, the 10-year U.S. Treasury rate increased 2bps to 1.33% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.7% percent.

U.S. stock markets moved higher last week buoyed by strong earnings reports, as- or better-thanexpected economic data and by temperate comments from Fed Chairman Jerome Powell. All three major U.S. stock indexes rose every day but Thursday last week, faltering on Thursday in anticipation of Jerome Powell’s Jackson Hole speech Friday morning and on news of the Kabul airport attack. Both the S&P 500 Index and Dow Jones Industrial Average closed the week at record highs. Fed Chairman Jerome Powell’s prepared remarks on Friday confirmed the Fed wanted to begin tapering its Treasury note and mortgage-backed bond buyback program before year end but also qualified those comments with a need for careful and moderate implementation citing concerns of “temporary fluctuations in inflation”. The 10-year U.S. Treasury rate finished the week higher but well off its Thursday’s high of 1.36%, falling over 4bps after Jerome Powell’s comments. Similarly, the U.S. dollar, weaker by ½ percent through Thursday, weakened almost another ½ percent Friday. For the week, the S&P 500 Index increased 1.5% to 4,509.37, the Nasdaq Composite Index rose 2.8% to 15,129.50, the Dow Jones Industrial Average gained 1.0% closing at 35,454.81, the 10-year U.S. Treasury rate increased 5bps to 1.31% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.9% percent.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 27 Aug 2021

30 August, 2021 | GraniteShares
U.S. stock markets moved higher last week buoyed by strong earnings reports, as- or better-thanexpected economic data and by temperate comments from Fed Chairman Jerome Powell. All three major U.S. stock indexes rose every day but Thursday last week, faltering on Thursday in anticipation of Jerome Powell’s Jackson Hole speech Friday morning and on news of the Kabul airport attack. Both the S&P 500 Index and Dow Jones Industrial Average closed the week at record highs. Fed Chairman Jerome Powell’s prepared remarks on Friday confirmed the Fed wanted to begin tapering its Treasury note and mortgage-backed bond buyback program before year end but also qualified those comments with a need for careful and moderate implementation citing concerns of “temporary fluctuations in inflation”. The 10-year U.S. Treasury rate finished the week higher but well off its Thursday’s high of 1.36%, falling over 4bps after Jerome Powell’s comments. Similarly, the U.S. dollar, weaker by ½ percent through Thursday, weakened almost another ½ percent Friday. For the week, the S&P 500 Index increased 1.5% to 4,509.37, the Nasdaq Composite Index rose 2.8% to 15,129.50, the Dow Jones Industrial Average gained 1.0% closing at 35,454.81, the 10-year U.S. Treasury rate increased 5bps to 1.31% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.9% percent.

Slowing U.S and Chinese growth fears, Afghanistan-related geopolitical and Delta variant concerns and Fed minutes increasing expectations the Fed may taper asset purchases before the end of this year pushed U.S. stock markets lower last week. All three major stock indexes moved higher Friday, gaining between ¾ percent and over 1 percent, buoyed by strong earnings reports and amid investor re-thinking of Fed taper timing. The U.S. dollar strengthened over 1 percent while the 10- year U.S. Treasury rate fell 4bps, perhaps reflecting expectations the Fed will tighten monetary policy sooner than later resulting in slower economic growth going forward. For the week, the S&P 500 Index decreased 0.6% to 4,441.67, the Nasdaq Composite Index decreased 0.7% to 14,714.66, the Dow Jones Industrial Average fell 1.1% to 35,120.08, the 10-year U.S. Treasury rate decreased 4bps to 1.26% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 1.1% percent.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

The Long and Short of it, week ending 20 Aug 2021

23 August, 2021 | GraniteShares
Slowing U.S and Chinese growth fears, Afghanistan-related geopolitical and Delta variant concerns and Fed minutes increasing expectations the Fed may taper asset purchases before the end of this year pushed U.S. stock markets lower last week. All three major stock indexes moved higher Friday, gaining between ¾ percent and over 1 percent, buoyed by strong earnings reports and amid investor re-thinking of Fed taper timing. The U.S. dollar strengthened over 1 percent while the 10- year U.S. Treasury rate fell 4bps, perhaps reflecting expectations the Fed will tighten monetary policy sooner than later resulting in slower economic growth going forward. For the week, the S&P 500 Index decreased 0.6% to 4,441.67, the Nasdaq Composite Index decreased 0.7% to 14,714.66, the Dow Jones Industrial Average fell 1.1% to 35,120.08, the 10-year U.S. Treasury rate decreased 4bps to 1.26% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 1.1% percent.

U.S. stock markets moved higher again last week with both the Dow Jones Industrial Average and the S&P 500 Index posting another set of record highs. Senate passage of a $1 trillion infrastructure bill Tuesday and Wednesday’s CPI release showing high YoY gains but slowing MoM gains helped move stock prices higher. Markets all but ignored Thursday’s record high PPI release and Friday’s much lower-than-expected consumer sentiment reading with all three major indexes moving higher the last two days of the week. The U.S. dollar, stronger through Thursday, weakened substantially Friday following the much lower-than-expected Michigan University consumer sentiment release. U.S. 10-year Treasury rates performed similarly, falling 7bps Friday after being up 8bps through Thursday. For the week, the S&P 500 Index increased 0.7% to 4,468.00, the Nasdaq Composite Index decreased 0.1% to 14,822.90, the Dow Jones Industrial Average rose 0.9% to 35,515.38, the 10-year U.S. Treasury rate increased 1bps to 1.30% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.3% percent.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 13 Aug 2021

16 August, 2021 | GraniteShares
U.S. stock markets moved higher again last week with both the Dow Jones Industrial Average and the S&P 500 Index posting another set of record highs. Senate passage of a $1 trillion infrastructure bill Tuesday and Wednesday’s CPI release showing high YoY gains but slowing MoM gains helped move stock prices higher. Markets all but ignored Thursday’s record high PPI release and Friday’s much lower-than-expected consumer sentiment reading with all three major indexes moving higher the last two days of the week. The U.S. dollar, stronger through Thursday, weakened substantially Friday following the much lower-than-expected Michigan University consumer sentiment release. U.S. 10-year Treasury rates performed similarly, falling 7bps Friday after being up 8bps through Thursday. For the week, the S&P 500 Index increased 0.7% to 4,468.00, the Nasdaq Composite Index decreased 0.1% to 14,822.90, the Dow Jones Industrial Average rose 0.9% to 35,515.38, the 10-year U.S. Treasury rate increased 1bps to 1.30% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.3% percent.

A volatile week for U.S. stock markets with stock prices pushed and pulled by strong earnings and economic reports on the one hand and the Delta variant and “peak” economy concerns on the other. Still, all three major U.S. stock indexes ended higher on the week with both the Dow Jones Industrial Average and the S&P 500 Index setting new highs. As-expected jobless claims with declining continuing claims, strong service purchasing manager index releases and a much betterthan-expected non-farm payroll report supported stock prices while growing Covid infections, a weak ADP report and peak-growth concerns restrained price gains. The U.S. dollar strengthened and the 10-year U.S. Treasury rate rose, both reacting mainly to the non-farm payroll report, recouping most or all of their previous week’s losses. At week’s end, the S&P 500 Index increased 0.9% to 4,436.52, the Nasdaq Composite Index rose 1.1% to 14,835.76, the Dow Jones Industrial Average increased 0.8% to 35,208.51, the 10-year U.S. Treasury rate increased 5bps to 1.29% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.7% percent.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 06 Aug 2021

09 August, 2021 | GraniteShares
A volatile week for U.S. stock markets with stock prices pushed and pulled by strong earnings and economic reports on the one hand and the Delta variant and “peak” economy concerns on the other. Still, all three major U.S. stock indexes ended higher on the week with both the Dow Jones Industrial Average and the S&P 500 Index setting new highs. As-expected jobless claims with declining continuing claims, strong service purchasing manager index releases and a much betterthan-expected non-farm payroll report supported stock prices while growing Covid infections, a weak ADP report and peak-growth concerns restrained price gains. The U.S. dollar strengthened and the 10-year U.S. Treasury rate rose, both reacting mainly to the non-farm payroll report, recouping most or all of their previous week’s losses. At week’s end, the S&P 500 Index increased 0.9% to 4,436.52, the Nasdaq Composite Index rose 1.1% to 14,835.76, the Dow Jones Industrial Average increased 0.8% to 35,208.51, the 10-year U.S. Treasury rate increased 5bps to 1.29% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.7% percent.

U.S. stock markets fell last week reacting to a myriad of inputs including GDP and PCE releases, the FOMC announcement and earnings reprots. Markets struggled despite strong tech-company earnings reports Monday and Tuesday from Alphabet, Microsoft, Apple and Tesla with investors cautious before the FOMC announcement and the release of the first-estimate of Q2 GDP. Wednesday’s FOMC announcement, reporting no changes to monetary policy and slightly upgrading the assessment of the U.S. economy saying economic activity had strengthened and improved but not fully recovered, had little effect on stock prices. A worse-than-expected GDP release Thursday actually supported stock prices with all three major indexes ending the day higher. The first estimate of Q2 GDP growth came in at 6.5% economic growth versus expectations of 8.4%. The lower-than-expected number was attributed to production and transportation bottlenecks and to labor constraints. Friday’s higher-than-expected core PCE release and Amazon’s weaker-thanexpected earnings report and slowing sales growth guidance pushed U.S. stock markets ½ to ¾ percent lower on the day. The U.S. dollar weakened significantly over the week, influenced by the combination of the Fed’s no-action mantra and growing inflation concerns. At week’s end, the S&P 500 Index decreased 0.4% to 4,395.26, the Nasdaq Composite Index fell 1.1% to 14,672.68, the Dow Jones Industrial Average decreased 0.4% to 34,935.47, the 10-year U.S. Treasury rate fell 5bps to 1.24% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.8% percent.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 30 July 2021

02 August, 2021 | GraniteShares
U.S. stock markets fell last week reacting to a myriad of inputs including GDP and PCE releases, the FOMC announcement and earnings reprots. Markets struggled despite strong tech-company earnings reports Monday and Tuesday from Alphabet, Microsoft, Apple and Tesla with investors cautious before the FOMC announcement and the release of the first-estimate of Q2 GDP. Wednesday’s FOMC announcement, reporting no changes to monetary policy and slightly upgrading the assessment of the U.S. economy saying economic activity had strengthened and improved but not fully recovered, had little effect on stock prices. A worse-than-expected GDP release Thursday actually supported stock prices with all three major indexes ending the day higher. The first estimate of Q2 GDP growth came in at 6.5% economic growth versus expectations of 8.4%. The lower-than-expected number was attributed to production and transportation bottlenecks and to labor constraints. Friday’s higher-than-expected core PCE release and Amazon’s weaker-thanexpected earnings report and slowing sales growth guidance pushed U.S. stock markets ½ to ¾ percent lower on the day. The U.S. dollar weakened significantly over the week, influenced by the combination of the Fed’s no-action mantra and growing inflation concerns. At week’s end, the S&P 500 Index decreased 0.4% to 4,395.26, the Nasdaq Composite Index fell 1.1% to 14,672.68, the Dow Jones Industrial Average decreased 0.4% to 34,935.47, the 10-year U.S. Treasury rate fell 5bps to 1.24% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.8% percent.

Rocked by fears of a Covid-19 resurgence, driven by the spread of the Delta variant, U.S. stock markets declined sharply Monday, with the Dow Jones Industrial average falling over 2% and the 10- year U.S. Treasury rate, reflecting investor flight to quality, fell 12bps to 1.18%. Markets, however, rebounded strongly Tuesday and continued to recover the remainder of the week with receding Covid fears and strong earnings reports. All three major U.S. stock indexes finished the week at record highs and the Dow Jones Industrial Average closed above 35,000 for the first time. The 10-year U.S. Treasury rate rebounded as well, rising to almost unchanged on the week. At week’s end, the S&P 500 Index increased 2.0% to 4,411.79, the Nasdaq Composite Index rose 2.8% to 14,836.99, the Dow Jones Industrial Average gained 1.1% to 35,061.55, the 10-year U.S. Treasury rate fell 1bps to 1.29% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.2% percent

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 23 July 2021

26 July, 2021 | GraniteShares
Rocked by fears of a Covid-19 resurgence, driven by the spread of the Delta variant, U.S. stock markets declined sharply Monday, with the Dow Jones Industrial average falling over 2% and the 10- year U.S. Treasury rate, reflecting investor flight to quality, fell 12bps to 1.18%. Markets, however, rebounded strongly Tuesday and continued to recover the remainder of the week with receding Covid fears and strong earnings reports. All three major U.S. stock indexes finished the week at record highs and the Dow Jones Industrial Average closed above 35,000 for the first time. The 10-year U.S. Treasury rate rebounded as well, rising to almost unchanged on the week. At week’s end, the S&P 500 Index increased 2.0% to 4,411.79, the Nasdaq Composite Index rose 2.8% to 14,836.99, the Dow Jones Industrial Average gained 1.1% to 35,061.55, the 10-year U.S. Treasury rate fell 1bps to 1.29% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.2% percent

U.S. stock markets ended the week lower pressured by increasing concerns of fallout from rising inflation and of climbing Delta-variant Covid-19 infections. Tuesday’s CPI and Wednesday’s PPI releases surprised markets coming in at much higher-than-expected levels but intially had little effect on stock market levels while mixed earnings reports seemed to cap market increases. Fed Chairman Powell’s testimony before congress held true to the Fed’s ongoing message that rising inflation was transient, the economy, while growing, had further room for improvement and that interest rates would remain near zero for the foreseeable future. Friday’s lower-than-expected consumer sentiment report and China’s slightly lower-than-expected Q2 GDP growth tipped markets over the edge with all three major U.S. stock markets falling around ¾ percent. The 10-year U.S. Treasury rate fell 6bps over the week, driven by growing expectations the Fed would need to raise rates sooner than later resulting in slower economic growth and, as a result, lower longer-term rates. The U.S. dollar strengthened last week, reflecting similar views. For the week, the S&P 500 Index decreased 1.0% to 4,327.16, the Nasdaq Composite Index fell 1.9% to 14,427.24, the Dow Jones Industrial Average decreased 0.5% to 34,897.02, the 10-year U.S. Treasury rate fell 6bps to 1.30% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.6% percent.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 16 July 2021

20 July, 2021 | GraniteShares
U.S. stock markets ended the week lower pressured by increasing concerns of fallout from rising inflation and of climbing Delta-variant Covid-19 infections. Tuesday’s CPI and Wednesday’s PPI releases surprised markets coming in at much higher-than-expected levels but intially had little effect on stock market levels while mixed earnings reports seemed to cap market increases. Fed Chairman Powell’s testimony before congress held true to the Fed’s ongoing message that rising inflation was transient, the economy, while growing, had further room for improvement and that interest rates would remain near zero for the foreseeable future. Friday’s lower-than-expected consumer sentiment report and China’s slightly lower-than-expected Q2 GDP growth tipped markets over the edge with all three major U.S. stock markets falling around ¾ percent. The 10-year U.S. Treasury rate fell 6bps over the week, driven by growing expectations the Fed would need to raise rates sooner than later resulting in slower economic growth and, as a result, lower longer-term rates. The U.S. dollar strengthened last week, reflecting similar views. For the week, the S&P 500 Index decreased 1.0% to 4,327.16, the Nasdaq Composite Index fell 1.9% to 14,427.24, the Dow Jones Industrial Average decreased 0.5% to 34,897.02, the 10-year U.S. Treasury rate fell 6bps to 1.30% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.6% percent.

Despite an up-and-down week for U.S. stock markets, all three major U.S. stock indexes once again reached record highs. Increasing concerns regarding the spread of the Delta Covid-19 variant and the resulting effect on economic growth as well as larger-than-expected jobless claims drove both U.S stock markets and the U.S. 10-year Treasury rate lower through Thursday. The S&P 500 Index, for example was down almost ¾ percent through Thursday while the 10-year U.S Treasury rate was 14bps lower. Stock markets rallied strongly and 10-year U.S. Treasury rates rose Friday on no real news but perhaps as coronavirus fears retreated and possibly as a result of the ECB’s decision to raise their inflation target while maintaining their current historically accommodative monetary policy At week’s end, the S&P 500 Index increased 0.4% to 4,369.55, the Nasdaq Composite Index rose 0.4% to 14,701.92, the Dow Jones Industrial Average gained 0.2% to 34,870.16, the 10-year U.S. Treasury rate fell 7bps to 1.36% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.1% percent.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 12 July 2021

13 July, 2021 | GraniteShares
Despite an up-and-down week for U.S. stock markets, all three major U.S. stock indexes once again reached record highs. Increasing concerns regarding the spread of the Delta Covid-19 variant and the resulting effect on economic growth as well as larger-than-expected jobless claims drove both U.S stock markets and the U.S. 10-year Treasury rate lower through Thursday. The S&P 500 Index, for example was down almost ¾ percent through Thursday while the 10-year U.S Treasury rate was 14bps lower. Stock markets rallied strongly and 10-year U.S. Treasury rates rose Friday on no real news but perhaps as coronavirus fears retreated and possibly as a result of the ECB’s decision to raise their inflation target while maintaining their current historically accommodative monetary policy At week’s end, the S&P 500 Index increased 0.4% to 4,369.55, the Nasdaq Composite Index rose 0.4% to 14,701.92, the Dow Jones Industrial Average gained 0.2% to 34,870.16, the 10-year U.S. Treasury rate fell 7bps to 1.36% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.1% percent.

U.S stock markets rallied to all-time highs with all three major stock indexes reaching record levels. Strong economic data as represented by Friday’s mostly better-than-expected payroll report, Thursday’s post-pandemic low in jobless claims, climbing consumer confidence and surging home prices combined to push stock markets higher. Also helping stock prices was President Biden’s announcement he would sign the almost $1 trillion bipartisan infrastructure bill if it reached his desk. Ten-year U.S. Treasury rates fell 11bps last week pushed lower by diminished inflation concerns (the payroll report showed decreasing wages) and increasing expectations the Fed would not need to raise rates sooner than later. At week’s end, the S&P 500 Index increased 1.7% to 4,352.34, the Nasdaq Composite Index rose 1.9% to 14,639.33, the Dow Jones Industrial Average gained 1.0% to 34,786.35, the 10-year U.S. Treasury rate fell 11bps to 1.43% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.5% percent.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 2 July 2021

07 July, 2021 | GraniteShares
U.S stock markets rallied to all-time highs with all three major stock indexes reaching record levels. Strong economic data as represented by Friday’s mostly better-than-expected payroll report, Thursday’s post-pandemic low in jobless claims, climbing consumer confidence and surging home prices combined to push stock markets higher. Also helping stock prices was President Biden’s announcement he would sign the almost $1 trillion bipartisan infrastructure bill if it reached his desk. Ten-year U.S. Treasury rates fell 11bps last week pushed lower by diminished inflation concerns (the payroll report showed decreasing wages) and increasing expectations the Fed would not need to raise rates sooner than later. At week’s end, the S&P 500 Index increased 1.7% to 4,352.34, the Nasdaq Composite Index rose 1.9% to 14,639.33, the Dow Jones Industrial Average gained 1.0% to 34,786.35, the 10-year U.S. Treasury rate fell 11bps to 1.43% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.5% percent.

U.S. stock markets rebounded strongly from the previous week’s downturn with the S&P 500 Index closing at record highs and the Nasdaq Composite Index closing slightly lower than the record highs it set Friday. Fed Chairman Jerome Powell’s testimony Tuesday insisting current high levels of inflation would be temporary added to NY Fed President John Williams’ comments Monday asserting the current state of the economy did not warrant a change in Fed policy, pushed all three major stock indexes 1.5% to 2% higher through Tuesday. President Biden’s announcement of a bipartisan infrastructure agreement moved markets higher Thursday and Friday, with a record YoY increase in PCE having little effect on stock prices. 10-year U.S. Treasury rates increased 9bps reversing last week’s declines reflecting strong economic growth with resulting inflationary pressures. At week’s end, the S&P 500 Index increased 2.7% to 4,280.70, the Nasdaq Composite Index rose 2.4% to 14,360.39, the Dow Jones Industrial Average gained 3.4% to 34,433.84, the 10- year U.S. Treasury rate rose 9bps to 1.54% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.5% percent.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 25 June 2021

29 June, 2021 | GraniteShares
U.S. stock markets rebounded strongly from the previous week’s downturn with the S&P 500 Index closing at record highs and the Nasdaq Composite Index closing slightly lower than the record highs it set Friday. Fed Chairman Jerome Powell’s testimony Tuesday insisting current high levels of inflation would be temporary added to NY Fed President John Williams’ comments Monday asserting the current state of the economy did not warrant a change in Fed policy, pushed all three major stock indexes 1.5% to 2% higher through Tuesday. President Biden’s announcement of a bipartisan infrastructure agreement moved markets higher Thursday and Friday, with a record YoY increase in PCE having little effect on stock prices. 10-year U.S. Treasury rates increased 9bps reversing last week’s declines reflecting strong economic growth with resulting inflationary pressures. At week’s end, the S&P 500 Index increased 2.7% to 4,280.70, the Nasdaq Composite Index rose 2.4% to 14,360.39, the Dow Jones Industrial Average gained 3.4% to 34,433.84, the 10- year U.S. Treasury rate rose 9bps to 1.54% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.5% percent.

U.S. stock markets reacted negatively to the FOMC announcement Wednesday afternoon, with all three major indexes ending lower on the week. Monday, however, saw both the S&P 500 and Nasdaq Composite Indexes reach record highs with these levels gradually deteriorating into Wednesday’s announcement. The big news from the Fed was its shift forward in the timing of expected rate increases (on the heels of a record YoY PPI release Tuesday) as well as an increase in its inflation expectations. Interestingly, the Fed gave no guidance regarding its buyback program. Markets rebounded on Thursday but then sold off sharply Friday after St. Louis Fed President Jim Bullard opined that the first rate increase would occur in 2022. The Dow Jones Industrial Average fared the worst, falling each day of the week. The Treasury yield curve flattened, with 10-year U.S. Treasury rates declining slightly and 2-year U.S. Treasury rates rising 10bps, reflecting increased expectations of rate increases along with growing concerns of slowing economic growth. In addition, the U.S. dollar sharply strengthened. For the week, the S&P 500 decreased 1.9% to 4,166.45, the Nasdaq Composite Index fell 0.3% to 14,030.38, the Dow Jones industrial average dropped 3.5% to 33,290.08, the 10-year U.S. Treasury rate fell 1bps to 1.45% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 1.8% percent.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 18 June 2021

21 June, 2021 | GraniteShares
U.S. stock markets reacted negatively to the FOMC announcement Wednesday afternoon, with all three major indexes ending lower on the week. Monday, however, saw both the S&P 500 and Nasdaq Composite Indexes reach record highs with these levels gradually deteriorating into Wednesday’s announcement. The big news from the Fed was its shift forward in the timing of expected rate increases (on the heels of a record YoY PPI release Tuesday) as well as an increase in its inflation expectations. Interestingly, the Fed gave no guidance regarding its buyback program. Markets rebounded on Thursday but then sold off sharply Friday after St. Louis Fed President Jim Bullard opined that the first rate increase would occur in 2022. The Dow Jones Industrial Average fared the worst, falling each day of the week. The Treasury yield curve flattened, with 10-year U.S. Treasury rates declining slightly and 2-year U.S. Treasury rates rising 10bps, reflecting increased expectations of rate increases along with growing concerns of slowing economic growth. In addition, the U.S. dollar sharply strengthened. For the week, the S&P 500 decreased 1.9% to 4,166.45, the Nasdaq Composite Index fell 0.3% to 14,030.38, the Dow Jones industrial average dropped 3.5% to 33,290.08, the 10-year U.S. Treasury rate fell 1bps to 1.45% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 1.8% percent.

U.S stock markets moved lower prior to Thursday’s CPI release, reflecting the possibility the Fed may need to scale back its easy-money policies sooner than later. Despite CPI coming in above expectations, jumping 5% YoY and 0.6% MoM, stock prices generally moved higher with the S&P 500 Index hitting a record high and the Nasdaq Composite Index increasing 0.8%. Stock prices continued their move higher on Friday, though the Dow Jones Industrial Average ended the week lower while the S&P 500 and Nasdaq Composite Indexes moved higher. Interestingly, 10-year U.S. Treasury rates moved lower throughout the week, falling 8bps before the CPI release. For the week, the S&P 500 Index increased 0.4% to 4,247.44, the Nasdaq Composite Index increased 1.9% to 14,069.42, the Dow Jones Industrial Average fell 0.8% to 34,479.6, the 10-year U.S. Treasury rate fell 10bps to 1.46% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened ½ percent

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 11 June 2021

14 June, 2021 | GraniteShares
U.S stock markets moved lower prior to Thursday’s CPI release, reflecting the possibility the Fed may need to scale back its easy-money policies sooner than later. Despite CPI coming in above expectations, jumping 5% YoY and 0.6% MoM, stock prices generally moved higher with the S&P 500 Index hitting a record high and the Nasdaq Composite Index increasing 0.8%. Stock prices continued their move higher on Friday, though the Dow Jones Industrial Average ended the week lower while the S&P 500 and Nasdaq Composite Indexes moved higher. Interestingly, 10-year U.S. Treasury rates moved lower throughout the week, falling 8bps before the CPI release. For the week, the S&P 500 Index increased 0.4% to 4,247.44, the Nasdaq Composite Index increased 1.9% to 14,069.42, the Dow Jones Industrial Average fell 0.8% to 34,479.6, the 10-year U.S. Treasury rate fell 10bps to 1.46% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened ½ percent

U.S. stock markets moved higher again last week with gains mainly coming Friday on a holiday-shortened trading week. Thursday’s better-than-expected jobless claims and President Biden’s retraction of his proposed corporate tax hike increased expectations of strong economic growth, higher inflation and, as a result, increased concerns the Fed may act sooner than later to pare its accommodative monetary policy, pushing all three major stock indexes lower. Those losses, however, were recouped Friday following a payroll report showing good but below-expectations job growth and an unchanged labor participation rate. 10-year U.S. Treasury rates were little changed on the week but experienced increased volatility moving higher one day and then lower the next throughout the week. At week’s end, the S&P 500 Index increased 0.6% to 4,229.89, the Nasdaq Composite Index increased 0.5% to 13,814.49, the Dow Jones Industrial Average rose 0.7% to 34,756.39, the 10-year U.S. Treasury rate fell 2bps to 1.56% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.1%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 4 June 2021

07 June, 2021 | GraniteShares
U.S. stock markets moved higher again last week with gains mainly coming Friday on a holiday-shortened trading week. Thursday’s better-than-expected jobless claims and President Biden’s retraction of his proposed corporate tax hike increased expectations of strong economic growth, higher inflation and, as a result, increased concerns the Fed may act sooner than later to pare its accommodative monetary policy, pushing all three major stock indexes lower. Those losses, however, were recouped Friday following a payroll report showing good but below-expectations job growth and an unchanged labor participation rate. 10-year U.S. Treasury rates were little changed on the week but experienced increased volatility moving higher one day and then lower the next throughout the week. At week’s end, the S&P 500 Index increased 0.6% to 4,229.89, the Nasdaq Composite Index increased 0.5% to 13,814.49, the Dow Jones Industrial Average rose 0.7% to 34,756.39, the 10-year U.S. Treasury rate fell 2bps to 1.56% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.1%.

All three major indexes moved higher last week, downplaying inflation concerns and instead focusing on continued post-Covid economic growth. An as-expected GDP release, soaring house prices and a historically high PCE release had little negative effect on stock markets and actually resulted in 10-year U.S. Treasury rates falling 5bps on the week. President Biden’s $6 trillion budget proposal released Friday also had little effect on markets. At week’s end, the S&P 500 Index increased 1.2% to 4,204.11, the Nasdaq Composite Index increased 2.1% to 13,748.74, the Dow Jones Industrial Average rose 0.9% to 34,529.45, the 10-year U.S. Treasury rate fell 5bps to 1.58% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) was unchanged.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 28 May 2021

01 June, 2021 | GraniteShares
All three major indexes moved higher last week, downplaying inflation concerns and instead focusing on continued post-Covid economic growth. An as-expected GDP release, soaring house prices and a historically high PCE release had little negative effect on stock markets and actually resulted in 10-year U.S. Treasury rates falling 5bps on the week. President Biden’s $6 trillion budget proposal released Friday also had little effect on markets. At week’s end, the S&P 500 Index increased 1.2% to 4,204.11, the Nasdaq Composite Index increased 2.1% to 13,748.74, the Dow Jones Industrial Average rose 0.9% to 34,529.45, the 10-year U.S. Treasury rate fell 5bps to 1.58% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) was unchanged.

U.S stock markets struggled last week with growing inflation concerns unsettling investors and pressuring stock prices lower. FOMC minutes, released Wednesday, revealed some members thought it may be necessary in the near future to discuss scaling back asset purchases, adding to concerns the Fed may act to reduce its accommodative monetary policy sooner than expected. Increased cryptocurrency volatility also added to stock markets’ malaise contributing to investor concerns regarding asset valuations vis a vis a less accommodative Fed. Thursday’s post-pandemic low jobless claims release supported stock prices pushing the S&P 500 Index up 1% and the Nasdaq Composite Index higher by just under 2%. Friday’s much better-than-expected PMI Composite Flash seemingly had little effect on markets. The 10-year U.S. Treasury rate, up 4bps through Wednesday, closed the week unchanged. At week’s end, the S&P 500 Index decreased 0.4% to 4,155.86, the Nasdaq Composite Index increased 0.3% to 13,470.99, the Dow Jones Industrial Average fell 0.5% to 34,207.84, the 10-year U.S. Treasury rate was unchanged at 1.63% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.3%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 21 May 2021

25 May, 2021 | GraniteShares
U.S stock markets struggled last week with growing inflation concerns unsettling investors and pressuring stock prices lower. FOMC minutes, released Wednesday, revealed some members thought it may be necessary in the near future to discuss scaling back asset purchases, adding to concerns the Fed may act to reduce its accommodative monetary policy sooner than expected. Increased cryptocurrency volatility also added to stock markets’ malaise contributing to investor concerns regarding asset valuations vis a vis a less accommodative Fed. Thursday’s post-pandemic low jobless claims release supported stock prices pushing the S&P 500 Index up 1% and the Nasdaq Composite Index higher by just under 2%. Friday’s much better-than-expected PMI Composite Flash seemingly had little effect on markets. The 10-year U.S. Treasury rate, up 4bps through Wednesday, closed the week unchanged. At week’s end, the S&P 500 Index decreased 0.4% to 4,155.86, the Nasdaq Composite Index increased 0.3% to 13,470.99, the Dow Jones Industrial Average fell 0.5% to 34,207.84, the 10-year U.S. Treasury rate was unchanged at 1.63% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.3%.

A tale of two halves last week with stock markets selling off steeply through Wednesday and then rallying strongly Thursday and Friday to finish the week lower but well off of Wednesday’s lows. Rotation from growth to value stocks continued early last week as investors continued to be concerned about growth stock valuations in the face of inflation and increasing interest rates. Wednesday’s much greater-than-expected CPI release pushed both growth and value stocks lower with growing expectations the Fed would act to scale back its massive accommodative monetary policy sooner than later. A lower-than-expected jobless claims number and the CDC advising that those fully vaccinated no longer need to wear masks in most situations helped push stock markets significantly higher. The increase came despite a much greater-than-expected increase in the PPI release. Inflation concerns again were ameliorated by the Fed, stating inflation increases will be transitory and that more data would be needed to cause changes in policy. The 10-year U.S. rate rose to almost 1.7% following the CPI release but moved lower the remainder of the week. At week’s end, the S&P 500 Index decreased 1.4% to 4,173.85, the Nasdaq Composite Index fell 2.3% to 13,429.98, the Dow Jones Industrial Average decreased 1.1% to 34,832.13, the 10-year U.S. Treasury rate rose 6bps to 1.64% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.1%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 14 May 2021

17 May, 2021 | GraniteShares
A tale of two halves last week with stock markets selling off steeply through Wednesday and then rallying strongly Thursday and Friday to finish the week lower but well off of Wednesday’s lows. Rotation from growth to value stocks continued early last week as investors continued to be concerned about growth stock valuations in the face of inflation and increasing interest rates. Wednesday’s much greater-than-expected CPI release pushed both growth and value stocks lower with growing expectations the Fed would act to scale back its massive accommodative monetary policy sooner than later. A lower-than-expected jobless claims number and the CDC advising that those fully vaccinated no longer need to wear masks in most situations helped push stock markets significantly higher. The increase came despite a much greater-than-expected increase in the PPI release. Inflation concerns again were ameliorated by the Fed, stating inflation increases will be transitory and that more data would be needed to cause changes in policy. The 10-year U.S. rate rose to almost 1.7% following the CPI release but moved lower the remainder of the week. At week’s end, the S&P 500 Index decreased 1.4% to 4,173.85, the Nasdaq Composite Index fell 2.3% to 13,429.98, the Dow Jones Industrial Average decreased 1.1% to 34,832.13, the 10-year U.S. Treasury rate rose 6bps to 1.64% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.1%.

Analysis of industry data by ETF provider GraniteShares reveals that 16 FTSE 100 companies have annual dividend yields – these are based on the current share price and the total dividends declared in the previous 12 months - of 0%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Investment Cases , Investments

ANALSYSIS REVEALS POOR DIVIDEND YIELDS FROM FTSE 100 AND FTSE 250 COMPANIES

13 May, 2021 | GraniteShares
Analysis of industry data by ETF provider GraniteShares reveals that 16 FTSE 100 companies have annual dividend yields – these are based on the current share price and the total dividends declared in the previous 12 months - of 0%.

The value versus growth trade continued last week with both the S&P 500 Index and the Dow Jones Industrial Average ending the week at record highs while the Nasdaq Composite Index finished the week lower. Strong earnings reports, continued expectations of a strong post-pandemic economic recovery along with growing inflation concerns - exacerbated by Treasury Secretary Yellen’s comments on Tuesday and emphasized by Monday’s ISM Manufacturing Index release - helped push cyclical stock prices higher while hindering tech stock prices last week. Friday’s much weaker-thanexpected payroll report had limited negative effect on stock prices with some analysts attributing the weakness to labor shortages resulting from high unemployment benefits and a dearth of childcare facilities (benefiting value stocks) while others believed the weak report showed a need for continued fiscal and monetary stimulus (benefiting growth stocks). For the week, the S&P 500 Index increased 1.2% to 4,232.60, the Dow Jones Industrial Average increased 2.7% to 34,777.76, the Nasdaq Composite Index decreased 1.5% to 13,752.24, the 10-year U.S. Treasury rate fell 5bps to 1.58% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 1.2%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 07 May 2021

10 May, 2021 | GraniteShares
The value versus growth trade continued last week with both the S&P 500 Index and the Dow Jones Industrial Average ending the week at record highs while the Nasdaq Composite Index finished the week lower. Strong earnings reports, continued expectations of a strong post-pandemic economic recovery along with growing inflation concerns - exacerbated by Treasury Secretary Yellen’s comments on Tuesday and emphasized by Monday’s ISM Manufacturing Index release - helped push cyclical stock prices higher while hindering tech stock prices last week. Friday’s much weaker-thanexpected payroll report had limited negative effect on stock prices with some analysts attributing the weakness to labor shortages resulting from high unemployment benefits and a dearth of childcare facilities (benefiting value stocks) while others believed the weak report showed a need for continued fiscal and monetary stimulus (benefiting growth stocks). For the week, the S&P 500 Index increased 1.2% to 4,232.60, the Dow Jones Industrial Average increased 2.7% to 34,777.76, the Nasdaq Composite Index decreased 1.5% to 13,752.24, the 10-year U.S. Treasury rate fell 5bps to 1.58% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 1.2%.

A volatile week for US stock markets buffeted by concerns of potential upside from last week’s highs, President Biden’s seeking to raise capital gains tax rates and increased Covid-19 infections in Asia on the one hand and strong economic reports, decent earnings releases and continued optimism regarding global post-pandemic growth on the other. US stock markets fell sharply Monday and Tuesday on no real news but coming off record highs from the previous week. Betterthan-expected earnings reports moved markets higher on Wednesday only to see those gains reversed Thursday following President Biden’s announcement of his plan to raise capital gains tax rates and to work to sharply lower emissions over the next few years and despite lower-thanexpected jobless claims. Markets bounced back Friday following much stronger-than-expected new home sales and decreased concerns over the possible effects of higher capital gains tax rates. At week’s end, the S&P 500 Index decreased 0.1% to 4,180.17, the Dow Jones Industrial Average decreased 0.5% to 34,043.49, the Nasdaq Composite Index decreased 0.3% to 14,016.81, the 10-year U.S. Treasury rate was unchanged at 1.57% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.8%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 23 Apr 2021

26 April, 2021 | GraniteShares
A volatile week for US stock markets buffeted by concerns of potential upside from last week’s highs, President Biden’s seeking to raise capital gains tax rates and increased Covid-19 infections in Asia on the one hand and strong economic reports, decent earnings releases and continued optimism regarding global post-pandemic growth on the other. US stock markets fell sharply Monday and Tuesday on no real news but coming off record highs from the previous week. Betterthan-expected earnings reports moved markets higher on Wednesday only to see those gains reversed Thursday following President Biden’s announcement of his plan to raise capital gains tax rates and to work to sharply lower emissions over the next few years and despite lower-thanexpected jobless claims. Markets bounced back Friday following much stronger-than-expected new home sales and decreased concerns over the possible effects of higher capital gains tax rates. At week’s end, the S&P 500 Index decreased 0.1% to 4,180.17, the Dow Jones Industrial Average decreased 0.5% to 34,043.49, the Nasdaq Composite Index decreased 0.3% to 14,016.81, the 10-year U.S. Treasury rate was unchanged at 1.57% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.8%.

The FDA suspension of J&J’s vaccine and uncertainty regarding earnings releases left U.S. stock markets directionless and slightly lower through Wednesday last week. Very strong bank earnings reports, lower-than-expected jobless claims and much stronger-than-expected retail sales and housing starts and permits powered U.S. stock markets higher with both the S&P 500 Index and Dow Jones Industrial Average reaching new highs. 10-year U.S. Treasury rates fell 9bps on the week boistered by strong auction demand for U.S. Treasury notes and despite stronger-than-expected economic data and Fed Chair Powell’s comments the Fed would likely scale back bond purchases well before increasing rates. For the week, the S&P 500 Index increased 1.4% to 4,185.47, the Dow Jones Industrial Average increased 1.2% to 34,200.67, the Nasdaq Composite Index increased 1.1% to 14,052.34, the 10-year U.S. Treasury rate fell 9bp to 1.57% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.7%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 16 Apr 2021

20 April, 2021 | GraniteShares
The FDA suspension of J&J’s vaccine and uncertainty regarding earnings releases left U.S. stock markets directionless and slightly lower through Wednesday last week. Very strong bank earnings reports, lower-than-expected jobless claims and much stronger-than-expected retail sales and housing starts and permits powered U.S. stock markets higher with both the S&P 500 Index and Dow Jones Industrial Average reaching new highs. 10-year U.S. Treasury rates fell 9bps on the week boistered by strong auction demand for U.S. Treasury notes and despite stronger-than-expected economic data and Fed Chair Powell’s comments the Fed would likely scale back bond purchases well before increasing rates. For the week, the S&P 500 Index increased 1.4% to 4,185.47, the Dow Jones Industrial Average increased 1.2% to 34,200.67, the Nasdaq Composite Index increased 1.1% to 14,052.34, the 10-year U.S. Treasury rate fell 9bp to 1.57% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.7%.

U.S. stock markets moved higher last week, powered by a stronger-than-expected payroll report (released the previous Friday while markets were closed), FOMC minutes affirming the Fed’s continued accommodative approach and a much better-than-expected ISM Non-Manufacturing Index release. Both the S&P 500 Index and Dow Jones Industrial Average closed the week at record highs while the Nasdaq Composite Index climbed out of correction territory. A higher-than expected PPI release had limited effect on longer-term interest rates and helped pushed stock markets higher on Friday. For the week, the S&P 500 Index increased 2.7% to 4,128.80, the Dow Jones Industrial Average increased 2.0% to 33,800.60, the Nasdaq Composite Index increased 3.1% to 13,900.19, the 10-year U.S. Treasury rate fell 1bp to 1.67% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.8%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 09 Apr 2021

13 April, 2021 | GraniteShares
U.S. stock markets moved higher last week, powered by a stronger-than-expected payroll report (released the previous Friday while markets were closed), FOMC minutes affirming the Fed’s continued accommodative approach and a much better-than-expected ISM Non-Manufacturing Index release. Both the S&P 500 Index and Dow Jones Industrial Average closed the week at record highs while the Nasdaq Composite Index climbed out of correction territory. A higher-than expected PPI release had limited effect on longer-term interest rates and helped pushed stock markets higher on Friday. For the week, the S&P 500 Index increased 2.7% to 4,128.80, the Dow Jones Industrial Average increased 2.0% to 33,800.60, the Nasdaq Composite Index increased 3.1% to 13,900.19, the 10-year U.S. Treasury rate fell 1bp to 1.67% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.8%.

Another volatile week, this time with the S&P 500 and Dow Jones Indexes ending higher and closing the week at record highs. The Nasdaq Composite Index, down almost 2% through Thursday, finished the week down 0.6%. Higher Monday on easing longer-term U.S. Treasury rates, U.S. stock markets dropped Tuesday and Wednesday following Treasury Secretary Yellen’s and Fed Chair Powell’s testimony before Congress, a much weaker-than-expected durable goods report and on global growth concerns spurred by renewed restrictions in Europe. Treasury Secretary Yellen’s comments suggesting the need for higher taxes and Fed Chair Powell’s caution regarding the pace of economic recovery may have helped move markets lower Tuesday and Wednesday. Lower-than-expected jobless claims, a revision higher to 4th quarter GDP and perhaps recovering oil prices moved stocks higher on Thursday and Friday, with major indexes rallying into the close on both days. 10-year U.S. Treasury rates, lower by 11bps through Wednesday, moved higher by almost 7bps the remainder of the week with most of that increase occurring Friday. For the week, the S&P 500 Index increased 1.6% to 3,974.54, the Dow Jones Industrial Average increased 1.4% to 33,072.88, the Nasdaq Composite Index decreased 0.6% to 13,138.74, the 10-year U.S. Treasury rate decreased 4bps to 1.69% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.9%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 26 Mar 2021

30 March, 2021 | GraniteShares
Another volatile week, this time with the S&P 500 and Dow Jones Indexes ending higher and closing the week at record highs. The Nasdaq Composite Index, down almost 2% through Thursday, finished the week down 0.6%. Higher Monday on easing longer-term U.S. Treasury rates, U.S. stock markets dropped Tuesday and Wednesday following Treasury Secretary Yellen’s and Fed Chair Powell’s testimony before Congress, a much weaker-than-expected durable goods report and on global growth concerns spurred by renewed restrictions in Europe. Treasury Secretary Yellen’s comments suggesting the need for higher taxes and Fed Chair Powell’s caution regarding the pace of economic recovery may have helped move markets lower Tuesday and Wednesday. Lower-than-expected jobless claims, a revision higher to 4th quarter GDP and perhaps recovering oil prices moved stocks higher on Thursday and Friday, with major indexes rallying into the close on both days. 10-year U.S. Treasury rates, lower by 11bps through Wednesday, moved higher by almost 7bps the remainder of the week with most of that increase occurring Friday. For the week, the S&P 500 Index increased 1.6% to 3,974.54, the Dow Jones Industrial Average increased 1.4% to 33,072.88, the Nasdaq Composite Index decreased 0.6% to 13,138.74, the 10-year U.S. Treasury rate decreased 4bps to 1.69% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.9%.

A somewhat volatile week for with U.S. stock markets reacting to Wednesday’s FOMC announcement and Chairman Powell’s comments and then to rising longer-term U.S. Treasury rates. Higher through Wednesday with all three major U.S. stock indexes reacting positively to the Fed’s decision to continue unchanged its accommodative monetary policy (ie, zero Fed Funds rate and no change to its Treasury and mortgage-backed securities buyback program), markets reversed course on Thursday as 10-year U.S. Treasury rates rose above 1.7%, a level not seen since before the pandemic. The Nasdaq Composite Index fared the worst, falling 3% on Thursday while the S&P 500 Index decreased 1.5% and the Dow Jones Industrial Average lost less than ½ percent. The U.S. dollar also experienced some volatility weakening ½ percent after the FOMC announcement and then strengthening ½ percent after the rise in longer-term Treasury rates on Thursday. At week’s end the S&P 500 and the Nasdaq Composite Index decreased 0.8% to 3,913.10 and 13,215.24, respectively, the Dow Jones Industrial Average fell 0.5% to 36,267.97, the 10-year U.S. Treasury rateincreased 10bps to 1.73% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.3%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 19 Mar 2021

23 March, 2021 | GraniteShares
A somewhat volatile week for with U.S. stock markets reacting to Wednesday’s FOMC announcement and Chairman Powell’s comments and then to rising longer-term U.S. Treasury rates. Higher through Wednesday with all three major U.S. stock indexes reacting positively to the Fed’s decision to continue unchanged its accommodative monetary policy (ie, zero Fed Funds rate and no change to its Treasury and mortgage-backed securities buyback program), markets reversed course on Thursday as 10-year U.S. Treasury rates rose above 1.7%, a level not seen since before the pandemic. The Nasdaq Composite Index fared the worst, falling 3% on Thursday while the S&P 500 Index decreased 1.5% and the Dow Jones Industrial Average lost less than ½ percent. The U.S. dollar also experienced some volatility weakening ½ percent after the FOMC announcement and then strengthening ½ percent after the rise in longer-term Treasury rates on Thursday. At week’s end the S&P 500 and the Nasdaq Composite Index decreased 0.8% to 3,913.10 and 13,215.24, respectively, the Dow Jones Industrial Average fell 0.5% to 36,267.97, the 10-year U.S. Treasury rateincreased 10bps to 1.73% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.3%.

U.S stock markets moved higher last week with the Dow Jones Industrial average continuing to outperform the S&P 500 and Nasdaq Composite Indexes. Declining U.S. Treasury rates, a muted CPI release, lower-than-expected jobless claims, increasing consumer sentiment and passage and signing into law of the $1.9 trillion stimulus package all worked to move stock prices higher. 10-year U.S. Treasury rates jumped 9bps higher Friday to close over 1.63% causing some retracement of gains in the Nasdaq Compositie Index while the Dow Jones Industrial Average moved oppositely, gaining almost 1% and the S&P 500 Index was almost unchanged (the increase in rates may be partly attributable to increasing “risk-on” sentiment causing yields to rise and the U.S. dollar to weaken). At week’s end the S&P 500 Index increased 2.6% to 3,943.34, the Nasdaq Composite Index increased 3.1% to 13,319.86, the Dow Jones Industrial Average rose 4.1% to 32,778.64, the 10-year U.S. Treasury rate increased 6bps to 1.63% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.3%

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 12 Mar 2021

16 March, 2021 | GraniteShares
U.S stock markets moved higher last week with the Dow Jones Industrial average continuing to outperform the S&P 500 and Nasdaq Composite Indexes. Declining U.S. Treasury rates, a muted CPI release, lower-than-expected jobless claims, increasing consumer sentiment and passage and signing into law of the $1.9 trillion stimulus package all worked to move stock prices higher. 10-year U.S. Treasury rates jumped 9bps higher Friday to close over 1.63% causing some retracement of gains in the Nasdaq Compositie Index while the Dow Jones Industrial Average moved oppositely, gaining almost 1% and the S&P 500 Index was almost unchanged (the increase in rates may be partly attributable to increasing “risk-on” sentiment causing yields to rise and the U.S. dollar to weaken). At week’s end the S&P 500 Index increased 2.6% to 3,943.34, the Nasdaq Composite Index increased 3.1% to 13,319.86, the Dow Jones Industrial Average rose 4.1% to 32,778.64, the 10-year U.S. Treasury rate increased 6bps to 1.63% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.3%

Another volatile week for U.S. equity markets as investors struggled with strong economic data, decreasing Covid-19 infections, increasing vaccinations and rising interest rates. Tech stocks continued to fare the worst, suffering most from concerns over rising rates, with the Nasdaq Composite Index decreasing last week while the S&P 500 and Dow Jones Industrial Indexes increased. House passage of the $1.9 trillion stimulus package, approval of J&J’s Covid-19 vaccination and stable 10-year Treasury rates powered all three indexes 2% to 3% higher on Monday only to see those gains swept away by increased uncertainty and concerns from a resumption of rising longer-term U.S. Treasury rates spurred by stronger-than-exepected economic reports and status-quo comments by Fed Chairman Powell. All three indexes rallied on Friday after initially falling as 10-year Treasury rates spiked then fell to unchanged on the day following the much betterthan-expected release of the Employment Situation report. The U.S. dollar strengthened last week, reflecting continued market uncertainty with stock market levels. At week’s end the S&P 500 Index increased 0.8% to 3,841.94 the Nasdaq Composite Index fell 2.1% to 12,920.15, the Dow Jones Industrial Average rose 1.8% to 31,496.30, the 10-year U.S. Treasury rate increased 15bps to 1.57% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 1.2%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 05 Mar 2021

07 March, 2021 | GraniteShares
Another volatile week for U.S. equity markets as investors struggled with strong economic data, decreasing Covid-19 infections, increasing vaccinations and rising interest rates. Tech stocks continued to fare the worst, suffering most from concerns over rising rates, with the Nasdaq Composite Index decreasing last week while the S&P 500 and Dow Jones Industrial Indexes increased. House passage of the $1.9 trillion stimulus package, approval of J&J’s Covid-19 vaccination and stable 10-year Treasury rates powered all three indexes 2% to 3% higher on Monday only to see those gains swept away by increased uncertainty and concerns from a resumption of rising longer-term U.S. Treasury rates spurred by stronger-than-exepected economic reports and status-quo comments by Fed Chairman Powell. All three indexes rallied on Friday after initially falling as 10-year Treasury rates spiked then fell to unchanged on the day following the much betterthan-expected release of the Employment Situation report. The U.S. dollar strengthened last week, reflecting continued market uncertainty with stock market levels. At week’s end the S&P 500 Index increased 0.8% to 3,841.94 the Nasdaq Composite Index fell 2.1% to 12,920.15, the Dow Jones Industrial Average rose 1.8% to 31,496.30, the 10-year U.S. Treasury rate increased 15bps to 1.57% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 1.2%.

U.S. stock markets moved higher once again last week with both the S&P 500 and Nasdaq Composite Indexes again reaching record highs. Stock markets were buoyed by increasing expectations of passage of a $1.9 trillion stimulus package, strong corporate earnings reports, a rallying energy sector propelled by higher oil prices and positive news regarding vaccine availability. Fed Chairman Powell’s comments on Wednesday stating the economy was still struggling and in need of more than accomodative monetary policy helped weaken the U.S. dollar and push 10-year U.S. Treasury rates higher. At week’s end the S&P 500 Index increased 1.2% to 3,934.83, the Nasdaq Composite Index rose 1.7% to 14,095.47, the 10-year U.S. Treasury rate increased 4bps to 1.21% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.6%.

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 12 Feb 2021

16 February, 2021 | GraniteShares
U.S. stock markets moved higher once again last week with both the S&P 500 and Nasdaq Composite Indexes again reaching record highs. Stock markets were buoyed by increasing expectations of passage of a $1.9 trillion stimulus package, strong corporate earnings reports, a rallying energy sector propelled by higher oil prices and positive news regarding vaccine availability. Fed Chairman Powell’s comments on Wednesday stating the economy was still struggling and in need of more than accomodative monetary policy helped weaken the U.S. dollar and push 10-year U.S. Treasury rates higher. At week’s end the S&P 500 Index increased 1.2% to 3,934.83, the Nasdaq Composite Index rose 1.7% to 14,095.47, the 10-year U.S. Treasury rate increased 4bps to 1.21% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.6%.

U.S. stock markets moved higher last week with both the S&P 500 and Nasdaq Composite Indexes reaching new record highs. Steps taken by the Democratic controlled House and Senate set the stage for passage of a $1.9 trillion coronavirus relief package were the primary reasons for last week’s gains. Strong earnings reports in tech and energy and material stocks and a slightly better than-expected employment situation report also helped move stock markets higher. Increased expectations of the passage of the $1.9 trillion stimulus package also acted to move 10-year Treasury rates higher and helped subdue the strengthening of the U.S. dollar. At week’s end the S&P 500 Index increased 4.7% to 3,886.83, the Nasdaq Composite Index rose 6.0% to 13,856.30, the 10-year U.S. Treasury rate increased 11bps to 1.17% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.5%

Topic: Telecoms , Financials , Basic Materials , Energy , Healthcare , Industrials , Consumer Staples , Technology

Publication Type: Market Commentaries

The Long and Short of it, week ending 05 Feb 2021

09 February, 2021 | GraniteShares
U.S. stock markets moved higher last week with both the S&P 500 and Nasdaq Composite Indexes reaching new record highs. Steps taken by the Democratic controlled House and Senate set the stage for passage of a $1.9 trillion coronavirus relief package were the primary reasons for last week’s gains. Strong earnings reports in tech and energy and material stocks and a slightly better than-expected employment situation report also helped move stock markets higher. Increased expectations of the passage of the $1.9 trillion stimulus package also acted to move 10-year Treasury rates higher and helped subdue the strengthening of the U.S. dollar. At week’s end the S&P 500 Index increased 4.7% to 3,886.83, the Nasdaq Composite Index rose 6.0% to 13,856.30, the 10-year U.S. Treasury rate increased 11bps to 1.17% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) strengthened 0.5%

U.S. stock markets were higher last week with stock prices supported by strong economic reports and hopes of additional stimulus spending. Slightly lower-than-expected jobless claims, a strongerthan-expected PMI Composite Flash Index release and much better-than-expected housing starts and permits and existing home sales combined with Janet Yellen’s call for additional, larger stimulus spending and President Biden’s announcement of a $1.9 trillion stimulus package helped move stock prices higher through most of the week. The Nasdaq Composite Index closed the week at a record high elevated by strong performance by Apple, Amazon, Facebook and Netflix while the S&P 500 Index, hurt by poor IBM and Intel earnings reports, closed just off its record high set Thursday. At week’s end the S&P 500 Index increased 2.0% to 3,841.47, the Nasdaq Composite Index rose 4.2% to 13,543.06, the 10-year U.S. Treasury was unchanged at 1.09% and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.6%.