A shaky start to the week is followed by steady momentum higher pushing the S&P 500 to its 44th record close Friday. Earnings have been moving the market this week but it was the July jobs report that maintained higher highs in large caps to end the week. The jobs report came out with an addition of 943,000 jobs and the unemployment rate slipped down to 5.4%; both better than expected numbers. The delta variant of covid-19 has added concerns to investors about the pace of economic growth going forward. The jobs report eased those concerns that the new variant would slow growth as the numbers suggests more offices opening, consumer spending is rising, and potential workers are not concerned about the virus.
The other side of the coin brought by the jobs report is its effect on the Fed's plans to cut their stimulus they've been feeding the economy since the beginning of the pandemic. The Federal Reserve has mentioned an eventual plan to start cutting its bond and mortgage security buying programs. The unexpected wave of the delta variant put a pause to the Fed and left them in a wait and see state, but positive economic data coming in since the delta variants appearance is likely a sign that its less of an economic threat than thought. Of course investors love the free stimulus the Fed brings to keep equities afloat in uncertain times. Therefore despite the rise to new highs in the S&P 500, the C-fund stood alone as a gainer on Friday among the TSP funds and was up only 0.18% on Friday.
The I-fund lagged on Friday with a 0.58% loss on the day yet outperformed for the week with a 1.04% gain. Bonds (F-fund) were up early in the week and ended Thursday with its nose above even. The jobs report drove yields higher and the F-fund chart gapped down and fell more intraday losing 0.45% Friday and giving the F-fund a 0.41% loss for the week to lag the TSP funds. All three TSP stock funds were up for the week.
Looking for an edge on your TSP return? Get the Last Look Report for as low as $4.19 / month. The report is a daily email on the auto tracker moves, news, forum threads, and more before the IFT deadline. The service is aimed to help you make your own IFT decisions by giving you relative information 30 min prior to the deadline including where the members of TSP Talk are moving their money.
Here are the weekly, monthly, and annual TSP fund returns for the week ending August 6:
The SPY (S&P 500 / C-fund) slipped early in the week but did not last long near its 20-day EMA before shifting momentum higher for the rest of the week. The jobs report Friday gave the index enough push to hit its 44th record close this year. The index is trending up and despite a couple pull backs it has been riding in a trading channel right above its 20-day EMA. The C-fund was up 0.96% for the week.
The Dow Completion Index (S-fund) was up for the week but bounced off the intraday highs of the previous week on Friday before turning early gains into losses for the day. The technical win this week was higher lows for the week. The 50-day EMA held as support at Tuesday's lows and sent the trend higher. All time highs are within reach but a loss Friday put a pause on the rising momentum. The S-fund was up 0.81% for the week.
EFA (EAFE Index / I-fund) moved above the previous highs since the June pull back and remained above to finish the week. The index, like small caps, pulled back Friday off its highs but remained within a rising trading channel of the last few weeks. The I-fund was up 1.04% for the week to outperform the TSP funds.
BND (Bonds / F-fund) was up early in the week but turned around mid-week after opening higher Wednesday. The index gave back most of its early gains by Thursday's close but gapped down Friday following the jobs report which sent yields higher. This pushed the index to close below its 20-day EMA for the first time since May. The index produced a higher high and lower low than the previous week. The F-fund lagged the TSP funds with the sole loss for the week as it fell 0.41% for the week after slipping 0.45% on Friday.
Good luck and thanks for reading. We will be back here next week with another TSP Wrap Up. You can read our daily market commentary at the Market Comments page. If you need more help deciding what to do with your account, perhaps one of our Premium Services can help.
Thomas A Crowley
wwww.tsptalk.com
Facebook | Twitter
The legal stuff: This information is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this data. Do not buy, sell or trade the funds mentioned herein based on this information. We may trade these funds differently than discussed above. We use additional methods and strategies to determine fund positions.
The other side of the coin brought by the jobs report is its effect on the Fed's plans to cut their stimulus they've been feeding the economy since the beginning of the pandemic. The Federal Reserve has mentioned an eventual plan to start cutting its bond and mortgage security buying programs. The unexpected wave of the delta variant put a pause to the Fed and left them in a wait and see state, but positive economic data coming in since the delta variants appearance is likely a sign that its less of an economic threat than thought. Of course investors love the free stimulus the Fed brings to keep equities afloat in uncertain times. Therefore despite the rise to new highs in the S&P 500, the C-fund stood alone as a gainer on Friday among the TSP funds and was up only 0.18% on Friday.
The I-fund lagged on Friday with a 0.58% loss on the day yet outperformed for the week with a 1.04% gain. Bonds (F-fund) were up early in the week and ended Thursday with its nose above even. The jobs report drove yields higher and the F-fund chart gapped down and fell more intraday losing 0.45% Friday and giving the F-fund a 0.41% loss for the week to lag the TSP funds. All three TSP stock funds were up for the week.
Looking for an edge on your TSP return? Get the Last Look Report for as low as $4.19 / month. The report is a daily email on the auto tracker moves, news, forum threads, and more before the IFT deadline. The service is aimed to help you make your own IFT decisions by giving you relative information 30 min prior to the deadline including where the members of TSP Talk are moving their money.
Here are the weekly, monthly, and annual TSP fund returns for the week ending August 6:
The SPY (S&P 500 / C-fund) slipped early in the week but did not last long near its 20-day EMA before shifting momentum higher for the rest of the week. The jobs report Friday gave the index enough push to hit its 44th record close this year. The index is trending up and despite a couple pull backs it has been riding in a trading channel right above its 20-day EMA. The C-fund was up 0.96% for the week.
The Dow Completion Index (S-fund) was up for the week but bounced off the intraday highs of the previous week on Friday before turning early gains into losses for the day. The technical win this week was higher lows for the week. The 50-day EMA held as support at Tuesday's lows and sent the trend higher. All time highs are within reach but a loss Friday put a pause on the rising momentum. The S-fund was up 0.81% for the week.
EFA (EAFE Index / I-fund) moved above the previous highs since the June pull back and remained above to finish the week. The index, like small caps, pulled back Friday off its highs but remained within a rising trading channel of the last few weeks. The I-fund was up 1.04% for the week to outperform the TSP funds.
BND (Bonds / F-fund) was up early in the week but turned around mid-week after opening higher Wednesday. The index gave back most of its early gains by Thursday's close but gapped down Friday following the jobs report which sent yields higher. This pushed the index to close below its 20-day EMA for the first time since May. The index produced a higher high and lower low than the previous week. The F-fund lagged the TSP funds with the sole loss for the week as it fell 0.41% for the week after slipping 0.45% on Friday.
Good luck and thanks for reading. We will be back here next week with another TSP Wrap Up. You can read our daily market commentary at the Market Comments page. If you need more help deciding what to do with your account, perhaps one of our Premium Services can help.
Thomas A Crowley
wwww.tsptalk.com
Facebook | Twitter
The legal stuff: This information is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this data. Do not buy, sell or trade the funds mentioned herein based on this information. We may trade these funds differently than discussed above. We use additional methods and strategies to determine fund positions.
