Monday, Jul 06

Talking Points of the Week for Financial Advisors (7/6)

As an OCIO, Helios distributes a 19-page Weekly Report to member firms every Friday, which includes risk level summaries, model allocations, detailed model positioning information, market index information, and much more. Here, we are sharing the talking points of the week which we provide in the Weekly Report.

On a shortened week, the S&P 500 was positive in every trading day, helped by a better than expected unemployment report on Thursday. We haven’t seen an all green week on the S&P 500 since early April of last year.

The unemployment rate positively surprised the market once again, with a June figure of 11.1%, better than the 12.5% expected and over a 2% improvement from May’s 13.3% rate. This is the second notable surprise in a row giving fuel to optimistic readings on the direction of the underlying economy, though not without caveats given the recent acceleration of new COVID cases.

Underlying report was mixed with average hourly earnings continuing to fall (-1.2% vs. -1.0% in May), an increased participation rate, and another record (4.8M) number of added jobs.

ISM Manufacturing index moved back into expansionary territory in June, rising to 52.6 from 43.1. This beat expectations by nearly 3 points and is the highest reading since April 2019. The Markit Manufacturing PMI Index also improved, but more modestly and staying just below the boundary between contractionary and expansionary readings.

Nyle Bayer

Nyle Bayer

Nyle Bayer is the Chief Marketing Officer at Helios, where he helps Financial Advisors tell their story to the clients they serve. Prior to Helios, Nyle was the President of Up Capital Management, a Registered Investment Advisor. Nyle lives in the Sacramento, CA area with his wife and three children.