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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

July 26, 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

July 20, 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

July 13, 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

July 07, 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

June 29, 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

June 21, 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

June 14, 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

June 07, 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

June 01, 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

May 25, 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

May 17, 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

May 13, 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

May 10, 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

April 26, 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

April 20, 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%.

Investors and hedge fund managers alike diversify their portfolios by investing in FANG ETFs. What are FANG stocks, and why are they so popular? We’ll examine how FANG stocks perform and why these stocks are lucrative. Whether you prefer long-term or short-term investment strategies, FANG benefits both. We’ll explain why these industry leaders are worth your investment.

Topic: FAANG , GAFAM , FATANG

Publication Type: ETP and Industry

How To Invest In FANG ETFs

April 19, 2021 | GraniteShares
Investors and hedge fund managers alike diversify their portfolios by investing in FANG ETFs. What are FANG stocks, and why are they so popular? We’ll examine how FANG stocks perform and why these stocks are lucrative. Whether you prefer long-term or short-term investment strategies, FANG benefits both. We’ll explain why these industry leaders are worth your investment.

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

April 13, 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

March 30, 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

March 23, 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

March 16, 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%

FAANG is an acronym of five internationally-famous technology giants based in the United States: Facebook, Apple, Amazon, Netflix, and Google (now Alphabet). Not only are FAANG companies easily recognized and household names, but because they make up such a large portion of the stock market, they can impact the market as a whole. Therefore, it would be an excellent opportunity to learn more about these companies. Read on to learn more about the FAANG group that makes up for a good portion of the S&P 500 market, what they do, how to invest in them, and whether they’re a good investment to make in the first place.

Topic: Technology , FAANG

Publication Type: ETP and Industry

What Is FAANG? [Stock & ETF Overview]

March 10, 2021 | GraniteShares
FAANG is an acronym of five internationally-famous technology giants based in the United States: Facebook, Apple, Amazon, Netflix, and Google (now Alphabet). Not only are FAANG companies easily recognized and household names, but because they make up such a large portion of the stock market, they can impact the market as a whole. Therefore, it would be an excellent opportunity to learn more about these companies. Read on to learn more about the FAANG group that makes up for a good portion of the S&P 500 market, what they do, how to invest in them, and whether they’re a good investment to make in the first place.

In the world of finance, FANG is an acronym that refers to four American-based technology giants. Companies in this group contain Facebook (FB), Amazon (AMZN), Netflix (NFLX), and Google (GOOG)—after this acronym was born, Google restructured to Alphabet Inc. in 2015; however, the acronym remains the same. FANG stocks are all known for tremendous growth in their respective industries. Keep reading to learn everything you need to know about FANG stocks; what each company of this group produces, if their stocks are overvalued, and reasons for investing.

Topic: FAANG , GAFAM , FATANG

Publication Type: ETP and Industry

What Are FANG Stocks? [Definition & FAQ]

March 08, 2021 | GraniteShares
In the world of finance, FANG is an acronym that refers to four American-based technology giants. Companies in this group contain Facebook (FB), Amazon (AMZN), Netflix (NFLX), and Google (GOOG)—after this acronym was born, Google restructured to Alphabet Inc. in 2015; however, the acronym remains the same. FANG stocks are all known for tremendous growth in their respective industries. Keep reading to learn everything you need to know about FANG stocks; what each company of this group produces, if their stocks are overvalued, and reasons for investing.

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