THE WEEK ON WALL STREET
Stocks had a mixed, see-saw week as disappointing corporate reports unsettled investors who appeared to rotate away from some leading groups in favor of other names.
The Dow Jones Industrial Average picked up 0.75 percent. Meanwhile, the S&P 500 Index declined 0.83 percent, and the Nasdaq Composite Index dropped 2.08 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, fell 1.49 percent for the week through Thursday’s close.
FACT OF THE WEEK
On July 29, 1958, the U.S. Congress passed legislation establishing the National Aeronautics and Space Administration (NASA), a civilian agency responsible for coordinating America’s activities in space. NASA has since sponsored space expeditions, both human and mechanical, that have yielded vital information about the solar system and universe. It has also launched numerous earth-orbiting satellites that have been instrumental in everything from weather forecasting to navigation to global communications.
NASA was created in response to the Soviet Union’s October 4, 1957, launch of its first satellite, Sputnik I. The 183-pound, basketball-sized satellite orbited the Earth in 98 minutes. The Sputnik launch caught Americans by surprise and sparked fears that the Soviets might also be capable of sending missiles with nuclear weapons from Europe to America.
MARKET MINUTE
Q2 Corporate Reports Start
Last week began with some positive momentum, but after Tuesday’s close, two influential tech companies reported disappointing Q2 numbers, which soured sentiment. On Wednesday, the S&P dropped 2 percent, and the Nasdaq fell more than 3 percent.
Stocks attempted to rebound on Thursday on news that gross domestic product grew much faster than expected in Q2, but sellers swooped in near the close.
Stocks rallied broadly on Friday after a positive inflation report. The personal consumption expenditures index, widely considered the Fed’s preferred inflation measure, showed only a slight uptick in June—in line with expectations.
Watch the Rotation
July 26 saw the end of the third consecutive week in which the Dow led the other two averages and its fourth straight week of gains. At the same time, the S&P and Nasdaq have been under pressure, with both posting losses for the second consecutive week. So far in July, the Dow is up nearly 4 percent, the S&P is down slightly, and the Nasdaq is off by over 2 percent. That’s a marked change from earlier in the year when the Nasdaq led.
FINANCIAL STRATEGY OF THE WEEK
Now that summer’s here, staying cool can make electricity bills skyrocket, so here are some strategies to help keep cool and save cash at the same time.
Change your air conditioner’s filter. The most important HVAC maintenance is routinely replacing or cleaning your filters. If they’re clogged or dirty, they’ll block normal airflow and reduce efficiency significantly, meaning more expense and wear and tear on your entire system. Replacing an old filter can lower your AC’s energy consumption by 5% to 15%, meaning you save on your monthly bill.
Adjust your AC or switch to a SMART thermostat. The U.S. Department of Energy says you can save as much as 10% a year by turning your thermostat up 7° to 10°F when you’re not home. Or better yet, automate it! Program a SMART thermostat based on your schedule to keep things cool when you’re home and save money when you’re not – you can always manually override the settings temporarily if needed. Depending on the thermostat model and your energy usage, you can save enough in a year to cover the initial cost of switching.
Maintain your equipment. Regular HVAC maintenance allows your system to operate at peak performance, ensuring optimal functionality, energy efficiency, indoor comfort, and better air quality. A well-maintained system has a longer lifespan with fewer costly breakdowns, and it also consumes less energy, resulting in reduced utility costs and a lighter environmental footprint. Schedule your cooling system’s check-up for early spring with a professional contractor.
Home improvements, from basic to beyond. Many homes are drafty, so check for door and window cracks that may allow AC to escape and install thermal stripping or insulating foam to keep cool air in and hot air out. Invest in thermal blackout curtains or shades for windows in direct sunlight – blocking the sun during the day can reduce heat gain by 33%. Finally, consider an awning for any windows facing south or west. Using a retractable awning in summer can reduce solar heat gain by 65% to 77%, keeping it cooler inside without using any energy at all!
These simple tips will help keep things cool this summer while saving you money. And, of course, if we need to get together to discuss any other aspects of your financial situation, let’s connect soon. I hope this information is helpful to you, and as always, please feel free to share it with your friends and family if you think it would be beneficial to them, too.