THE WEEK ON WALL STREET
Stocks rose last week despite mixed signals on inflation as investors kept one eye on the Fed’s September meeting. The S&P 500 Index advanced 0.94 percent, while the Nasdaq Composite Index added 0.81 percent. The Dow Jones Industrial Average rose 1.74 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, increased 2.16 percent.
FACT OF THE WEEK
On August 18, 1992, celebrated Boston Celtics forward Larry Bird retired.
Bird was a high school basketball star in his native Indiana. After graduation, he received a scholarship to play for legendary coach Bobby Knight at Indiana University, one of the finest teams in the country. However, Bird was homesick and uncomfortable in the spotlight in Bloomington and left the school after one month. He returned to French Lick, his hometown, and eventually enrolled at the smaller Indiana State, far from a basketball powerhouse. There, Bird was a one-man offense, averaging 30 points per game as a sophomore, junior and senior. He led the Sycamores to an undefeated record in his senior season (1978-79) before losing to Earvin “Magic” Johnson’s Michigan State Spartans in the most viewed NCAA title game ever.
Bird entered the NBA in 1979 and had an immediate impact on the league, winning Rookie of the Year after leading the Celtics to a 61-21 record and first place in the Atlantic Division just one year after they went 29-53 and finished in last place. In his second season, Bird, playing alongside fellow future Hall of Famers Kevin McHale at forward and Robert Parrish at center, led the Celtics to an NBA title. They would win the championship again in 1984 and 1986, with Bird winning the Finals MVP each of those two years. He was the NBA regular season MVP three years in a row, from 1984 to 1986, and a first-team NBA All-Star nine times. In the process, he won legions of loyal fans in Boston and throughout the country. Bird was also recognized for his versatility on the court: He could pass, rebound, shoot from the outside and play tough defense. As his career progressed, though, Bird began to suffer from chronic back pain that, by the 1990s, limited both his playing time and his effectiveness.
In 1992, at an emotional press conference in Boston to announce his retirement, Bird explained, “The last couple of years have been very tough on me, on my back and on my body. It was very hard to deal with, day in and day out.” NBA commissioner David Stern released a statement that read in part “Quite simply, Larry Bird has helped to define the way a generation of basketball fans has come to view and appreciate the N.B.A. In the future, great players will be judged against the standards he has set, but there will never be another Larry Bird.”
MARKET MINUTE
Third Gain in Four Weeks
Stocks posted modest losses to start the week as investors braced for July consumer inflation reports. The White House’s executive order on Monday extending the tariff deadline for China by 90 days failed to move markets in the other direction. Stocks then staged a two-day rally following the latest Consumer Price Index (CPI) report, which showed July inflation held steady over the prior month—beating expectations. The inflation news led some investors to move into small-cap stocks, with the Russell 2000 Index of small-cap stocks rising 5 percent over Tuesday and Wednesday. However, markets slipped Thursday as investors dug into the Producer Price Index (PPI) for July, which showed wholesale inflation hit a 3-year high last month; this was the third weekly gain in the past four weeks for each of the three major averages; the S&P and Nasdaq advanced four of the last five weeks.
A Mixed Inflation Story
Inflation continues to give mixed signals, which can unsettle investors who anticipate the Fed adjusting rates at its September meeting. Last week’s CPI report showed that “headline” (retail) inflation held steady. Stocks rose in response, even though core inflation—excluding volatile food and energy prices—was hotter than economists expected. Two days later, the PPI report revealed that inflation began to creep into wholesale prices in July. Stocks fell in response as investors processed the conflicting reports.
FINANCIAL STRATEGY OF THE WEEK
August is National Wellness Month, a time dedicated to promoting self-care, healthy routines, and stress management. It encourages you to prioritize your well-being by adopting new practices to enhance your life and health. Recent data shows that 84% of U.S. consumers say wellness is a “top” or “important” priority.
Join new fitness challenges. Organize a walking challenge with members of your community, try a new fitness class you’ve been considering, or join an intramural sports team in your neighborhood!
Sign up for a healthy cooking class. Sign up for a cooking class in your area to enhance your cooking skills and learn new recipes. Check out locations for monthly cooking class opportunities.
Start a gratitude journal. A great way to begin practicing gratitude is by journaling and sharing positive experiences that you can reflect on.
As you take the time to pause, reflect, and reset your action plans to reach year-end goals, we are here to assist you with any questions or concerns that may arise along the way. By having a clear direction and focus, you can make your goals a reality. As always, please do not hesitate to reach out. Stay well and enjoy these last few weeks of the summer season!