The S&P 500 wrapped up May on the plus side at 4204 on Friday, marking four straight positive months. For the most part (except for AMC surging 47% on Thursday), the week was characterized with low volatility and trading volume ahead of the holiday weekend and the unofficial start of summer. On the economic front, 1) initial jobless claims fell to another new pandemic low of 406,000 new claims, 2) the Chicago manufacturing reading came in at a higher than expected 75.2, its highest level since November 1973, and as one would expect in an expanding economy, 3) the core personal consumption expenditures index rose a faster-than-expected 3.1% in April. From a technical perspective, the S&P 500 remained in that range bound channel between its record high of 4232 on 7 May (resistance level) and the low of 4053 on 12 May (support level). With the upcoming holiday shortened week, the markets will most likely remain calm awaiting Fridays May payroll report, which follows Aprils unexpected gain of only 266K jobs. For TSP TIPS, the C fund mimicked the S&P 500 and remained in the above-mentioned range bound channel. However, the I fund was the standout making three new record highs including a strong week ending Friday. As such, our current allocation looks well positioned and well see what next Friday brings us. Lastly, the markets will be closed on Monday and we wish everyone an enjoyable Memorial Day weekend!!
The S&P 500 wrapped up May on the plus side at 4204 on Friday, marking four straight positive months. For the most part (except for AMC surging 47% on Thursday), the week was characterized with low volatility and trading volume ahead of the holiday weekend and the unofficial start of summer. On the economic front, 1) initial jobless claims fell to another new pandemic low of 406,000 new claims, 2) the Chicago manufacturing reading came in at a higher than expected 75.2, its highest level since November 1973, and as one would expect in an expanding economy, 3) the core personal consumption expenditures index rose a faster-than-expected 3.1% in April. From a technical perspective, the S&P 500 remained in that range bound channel between its record high of 4232 on 7 May (resistance level) and the low of 4053 on 12 May (support level). With the upcoming holiday shortened week, the markets will most likely remain calm awaiting Fridays May payroll report, which follows Aprils unexpected gain of only 266K jobs. For TSP TIPS, the C fund mimicked the S&P 500 and remained in the above-mentioned range bound channel. However, the I fund was the standout making three new record highs including a strong week ending Friday. As such, our current allocation looks well positioned and well see what next Friday brings us. Lastly, the markets will be closed on Monday and we wish everyone an enjoyable Memorial Day weekend!!