Summer is often a slow period for markets, and slow it has been. Another day of low volatility for stocks has come and gone. It’s now been 14 days in a row that the S&P 500 has closed without a move bigger than 0.30% in either direction of its opening price.
It was, however, the first time in 11 days that the Dow Jones industrial average didn’t close in record territory.
First up, the scoreboard:
- Dow: 22,085.34, -33.08, (-0.15%) S&P 500: 2,474.92, -5.99, (-0.24%) Nasdaq: 6370.46, -13.31, (-0.21%) US 10-year yield: 2.25%, +0.03 WTI crude oil: $49.10, -0.21, (-0.43%)
The S&P 500 is up over 10% this year, but only because it favors the biggest public companies. If you weight the index equally, the growth doesn’t look as promising. After forking into bitcoin and bitcoin cash, bitcoin was expected to fall in value. But it’s pretty much shrugged off the fork and is hitting record highs. The combined value of a single unit of both bitcoin and bitcoin cash is now about $1,000 higher than a single bitcoin was before the fork. Jeff Gundlach thinks market volatility will pick up soon. He says betting on an increase in volatility is “free money.” LendingClub was hit by a fraud scandal in 2016, but its battling back. The company posted its second-highest quarterly revenue and shares popped on the news. Credit card debt in the US is now above where it peaked before the 2008 financial crisis. Defaults are on the rise for credit card and auto loans.