U.S. Stocks, High-Yield Bonds, and Treasuries posted solid gains last week.
The S&P 500 finished at 2,129, the highest weekly close ever and a few points off of the all-time high. In addition to stocks, other asset classes like Long-Term Bonds, REITs, and more made new record highs. On Wednesday, the Fed minutes revealed that participants were uncertain and wanted more information before another rate hike. This moved the implied probability of a rate hike down further. Employment data on Friday showed June month-over-month change of nonfarm payrolls were 287,000, easily topping expectations. ISM non-manufacturing data was strong as well, the composite index coming in at 56.5, the strongest growth of the year. In M&A, Danone, a French company, announced the purchase of WhiteWave Foods (WWAV) for $10 billion, a very rich valuation. Earnings season kicks off next week.