Dear valued client,
Markets continued their upward progress this week as corporate earnings season rolled on. Microsoft, Johnson & Johnson, and Charles Schwab posted stronger-than-expected revenues while Netflix, Tesla, and Goldman Sachs showed underwhelming numbers. As is always the case with short-term market fluctuations, investors’ expectations play a key role in the direction of share prices. Companies’ fundamentals and long-term potential profitability are the main factors for decades-long investors (which I often encourage you all to be). Additionally, U.S. sales figures for June rose 0.2% from a month prior, indicating a resilient economy despite higher interest rates.
Canada’s inflation rate fell to 2.8% in June (compared to 3.4% in May and 5.9% in January). This is the lowest inflation has been since March 2021. The fight to curb inflation, however, isn’t over…
The Kremlin announced Monday it is not extending a year-old pact that allowed the safe passage of Ukrainian agricultural products through a Russian naval blockade. Russia’s Defense Ministry heightened tensions with a warning that “all ships proceeding to Ukrainian ports in Black Sea waters will be considered potential carriers of military cargo.” An estimated 33 million tonnes of corn, wheat, and other grains flowed through this naval passage to be sold on the global market. This development will likely squeeze food prices that have already increased substantially over the past 12-18 months as supply will diminish.
For all you movie buffs, Christopher Nolan’s new film is out in theaters today. Here’s what writer Alex Cranz had to say, “Christopher Nolan wants Oppenheimer to be a cautionary tale for Silicon Valley. The film is about a man who regrets his great technological innovation because he failed to consider its ramifications.”
If you go see the movie, I’d love to hear your review.
Have a terrific weekend,
PW
