Market Summary – July 26

U.S. equity markets were relatively flat last week, as earnings reports were mixed. Trading volume was lower as investors awaited economic news this week. New home sales in the U.S. rose
8.3% in June, despite higher mortgage rates. Sales of previously owned homes slipped 1.2% in June from May, but remain 15% higher than a year earlier. House prices rose 7.3% year over year
in May. The median existing home sales price rose 13% in June from a year earlier. U.S. durable goods orders increased 4.2% in June, surpassing the 1.3% expected. Nondefense capital goods
orders excluding aircraft, a proxy for business spending plans, rose 0.7% after a revised 2.2% increase in May. U.S. consumer sentiment reached a six‐year high in July climbing from 84.1 to 85.1
in June, surpassing expectations.

Eurozone business activity expanded in July, its first month of growth since January 2012. Markit’s preliminary PMI showed slim gains while its service index contracted. The composite index,
combining the two, rose to 50.4 (above the expansion level of 50) from 48.7. The HSBC flash China manufacturing PMI fell to 47.7 in July from 48.2 in June, reaching an 11‐month low. Chinese
manufacturing activity contracted for a third straight month. Japan’s CPI increased more in June than it has in five years, signaling a potential end to 15 years of deflation. Consumer prices
excluding fresh food rose 0.4% in June from a year earlier.

The S&P 500 Index posted a small loss last week, down ‐0.03%. The DJIA posted a slight gain of 0.10%. Seven of ten S&P 500 Index sectors were negative for the week. The three positive sectors
were utilities, materials, and health care. The poorest performing sectors were energy, industrials, and consumer staples. Crude oil dropped 3.10% to close the week at $104.70, and gold gained
2.16% to close at $1,322. The yield on the 10 Year Treasury rose to 2.56%.

Market Summary 7-26

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