Holiday week supplies few fireworks

Many investors left their trading desks behind for some fresh air and sunnier destinations last week, leaving others to ponder whether Fourth of July week may have some market fireworks.

In the end, there weren’t many. 

After some mid-week selling pressure, it was a robust non-farm payroll report (222,000) that helped the S&P 500 notch a slight gain at the end of the trading week for July 3–7. The payroll increase could indicate continued growth prospects for the economy amid the recent federal fund rate increases.

S&P 500, July 3-7

Source: E*TRADE Pro

Last week was a tale of two industries, with a potential challenge in one translating into good news for another. Oil oversupply fears caused prices to fall and dragged energy sector stocks lower. Conversely, airlines were winners as lower fuel costs and the start of peak travel season sent American Airlines Group (AAL) and United Continental Holdings (UAL) up over 5 percent.  

This week, the calendar starts quietly but gets busier as the week progresses.

There is little of importance scheduled for today, and Tuesday's only significant item is PepsiCo's (NYSE: PEP) quarterly results before the opening bell.

On Wednesday, Federal Reserve Chair Janet Yellen testifies before Congress, the central bank releases its Beige Book on economic conditions, and the Energy Department publishes its oil inventory report.

Thursday features jobless claims, producer prices, and a second Yellen appearance on Capitol Hill.

Friday's slate is the busiest. Economic headlines include retail sales, the consumer price index, industrial production, capacity utilization, and consumer sentiment. Also, quarterly results are due from banking heavy weights JPMorgan Chase (NYSE: JPM), Wells Fargo (NYSE: WFC), and PNC Financial (NYSE: PNC), along with several other major financials, which have recently been on a tear. 


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