Market & Economic Recap
June nonfarm payroll came in hot, confirming that the U.S. economy is gradually returning back to normal. National home price index for April was up 14.6%, reaching a new, unbelievable high, the biggest increase in 30 years.
In contrast, China is facing a headwind. Its Purchasing Managers’ Index (PMI) drops lightly. Last year, China was the first country out of the pandemic, so it would be the first to slow down. Since the U.S. and Europe (in that order) followed China to reopen their economies, China could be a leading indicator for the U.S. and Europe.
Dollar index was popping in the past two weeks and will test the high of April 2021. If it breaks up, it will form a W-bottom. When the U.S. dollar appreciates, commodities and emerging markets will go choppy or fall.
Credit Spreads Screening
A friendly reminder that the season of releasing 2021 Q2 earnings starts in few days. Please skip the stocks having earnings announcements. In terms of this week’s market condition, we used the high volatility settings to scan the conforming credit spreads. Premier Members can view the screening reports of conforming credit spreads, and others can join us to test-drive free for 30 days.