Author

Jeff Klearman

Jeff Klearman

Jeff Klearman is a Portfolio Manager for GraniteShares. He has more than 20 years of experience in the finance industry, including senior roles at Deutsche Bank and Rich Investment Solutions.

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Commentary,

Commodities and Precious Metals Update (Week ending July 10, 2020)

A see-saw week for U.S. stock markets as investors struggled with optimism over economic recovery versus growing concerns over increasing Covid-19 cases. Coming off the July 4th holiday week, a surging Chinese stock market and stronger-than-expected PMI and ISM services index numbers, the S&P 500 Index increased 1.6% on Monday only to see most of those gains reversed on Tuesday after the Trump administration called for a much-smaller-than-talked-about additional stimulus package and U.S. Federal Reserve officials voiced concerns that a resurgence of coronavirus cases could derail economic recovery. The S&P 500 Index rose about 0.6% on Wednesday on no real news only to see those gains more than reversed on a larger-than-expected jobless claims report and continued concerns surrounding increasing Covid-19 cases. Data suggesting Gilead’s remdesivir may help reduce Covid-19 mortalities helped move the S&P 500 Index over 1% higher on Friday. At week’s end the S&P 500 Index increased 1.8% to close at 3,184.04, the Nasdaq Composite Index rose 4.0% to 10,617.44, the 10-year U.S. interest rate fell 3 bps to 64bps and the U.S. dollar (as measured by the U.S. Dollar index – DXY) weakened 0.7%.

Commentary,

Commodities and Precious Metals Update (Week ending July 2, 2020)

Monday’s and Tuesday’s much-stronger-than-expected pending home sales and consumer confidence numbers combined with Boeing’s successful 737 Max test flight propelled the S&P 500 and the Nasdaq Composite Index to their best quartly performance since 1998 and 2001, respectively. Better-than-expected PMI and ISM manufacturing index releases on Wednesday and a much-stronger than-expected payroll report on Thursday pushed U.S. stock markets higher the remainder of the holiday-shortened week, though gains were muted because of growing concerns surrounding increasing COVID-19 cases. At week’s end the S&P 500 Index increased 4.0% to 3,130.01, the Nasdaq Composite Index increased 4.6% to 10,207.63, the 10-year U.S. Treasury rate increased 2bps to 0.67% and the U.S. dollar (as measured by the DXY Index) weakened 0.4%.

Commentary,

Commodities and Precious Metals Update (Week ending June 26, 2020)

Better-than-expected economic reports and continued optimism regarding a V-shaped economic recovery pushed S&P 500 Index 1.1% higher through Tuesday and helped the Nasdaq Composite Index reach new record closing levels. Reports of increasing Covid-19 cases, Trump administration threats of EU import tariffs and the IMF’s updated and significantly lower global economic growth forecast calling for a contraction of nearly 5% caught the market’s attention on Wednesday pushing the S&P 500 Index down 2.6%. Though a portion of those losses were reversed on Thursday as banks stocks rallied on news bank regulators would be relaxing certain capital restrictions, record daily increases in Covid-19 cases and reports that Florida and Texas would be rolling back some easing measures on Friday increased concerns regarding the strength and speed of the recovery of US and global economies pushing the S&P 500 Index down another 2.4%. At week’s end the S&P 500 Index fell 2.9% to 3,009.05, the 10-year U.S. Treasury rate decreased 5bps to 0.65% and the U.S. dollar (as measured by the DXY Index) weakened slightly, falling 0.1%.

Commentary,

Commodities and Precious Metals Update (Week ending June 19, 2020)

Garnering support from the U.S. Federal Reserve Bank’s widening of its corporate buyback program to include individual bonds and much-stronger-than-expected retail sales and and industrial production reports, the S&P 500 increased almost 3% through Tuesday. Fed Chairman Jerome Powell’s testimony in front of the Senate and House on Tuesday and Wednesday imploring congress to continue its fiscal stimulus efforts as well as increased fears of a coronavirus second wave (exacerbated by the W.H.O’s proclamation that the coronavirus has entered a new and dangerous phase) pushed the S&P 500 lower the remainder of week. At week’s end the S&P 500 Index increased 1.9% to 3,097.74, the 10-year U.S. Treasury rate was unchanged at 0.70% and the U.S. dollar (as measured by the DXY Index) strengthened 0.3%.

Commentary,

Commodities and Precious Metals Update (Week ending June 12, 2020)

Momentum from the previous Friday’s much-stronger-than-expected employment report pushed the S&P 500 Index 1.2% higher on Monday and into the black for the year and moved the Nasdaq Composite Index to a record all-time high. Anxiety surrounding the 2-Day FOMC meeting moved U.S. stock markets lower on Tuesday and Fed Chairman Powell’s comments on Wednesday – voicing deep uncertainty about the strength and timing of the recovery of the U.S. economy – pushed the S&P 500 Index off its Monday’s highs to unchanged for the week. U.S. stock markets plummeted Thursday on continued follow through from Powell’s comments as well as increased concerns of a coronavirus second wave only to see some of those losses recouped on Friday on no real news. 10-year Treasury rates steadily moved lower last week, fading with increased concerns of the timing and strength of economic recovery in the U.S. At week’s end the S&P 500 Index fell 4.8% to 3,041.31, the 10-year U.S. Treasury rate decreased 20bps to 0.70% and the U.S. dollar (as measured by the DXY Index) strengthened 0.2%.

Commentary,

Commodities and Precious Metals Update (Week ending June 5, 2020)

Overcoming concerns brought about by violent protests, fears of a second coronovirus wave and increasing U.S.-China tensions, U.S. stock markets marched higher last week, only pausing momentarily on Thursday, supported by growing optimism of a faster-than-expected economic recovery due to easing lockdown restrictions at home and abroad. An unexpected 2.5 million increase in non-farm payrolls (expectations were for a loss of about 8 million jobs) was the proverbial icing on the cake, pushing U.S. stock markets 2%-3% higher on Friday. Throughout the week the 10-year U.S. Treasury rate climbed higher as well, moving with increasing expectations of stronger, faster U.S. economic growth while the U.S. dollar weakened significantly mainly as result of lessening coronavirus concerns decreasing demand for U.S. dollars. At week’s end the S&P 500 Index increased 4.9% to 3,193.93, the 10-year U.S. Treasury rate rose 24bps to 0.90% and the U.S. dollar (as measured by the DXY Index) weakened 1.4%.