Portfolio Advisory Council, LLC presents:




July 6, 2020 


"We're blessed with the opportunity to stand for something - for liberty and freedom and fairness. And these are things worth fighting for ."


In a holiday-shortened week, stock prices turned higher as encouraging economic data outweighed an increase in COVID-19 cases and a rollback in economic re-openings.
The Dow Jones Industrial Average rose 3.25%, while the Standard & Poor's 500 increased by 4.02%. The Nasdaq Composite Index gained 4.62% for the week. The MSCI EAFE Index, which tracks developed stock markets overseas, picked up 0.22%.1,2,3

Stocks Climb a Wall of Worry
Stock prices moved higher on optimism of continued central bank support and a wave of buying on the final trading days of the second-calendar quarter.
On Wednesday, investors were emboldened by news of promising results from a COVID-19 vaccine trial. Stocks continued their move to the upside on Thursday, sparked by a better-than-expected jobs report and a higher-than-expected read on manufacturing activity.

Jobs, Jobs, Jobs
The ultimate measure of economic recovery is jobs for Americans, and last week, Wall Street got an update from three different perspectives.
First, the ADP (Automatic Data Processing) National Employment Report, which reported private-sector employers added 2.37 million jobs in June. Next, an update on jobless claims, which showed 1.43 million claims, slightly higher than estimates. And finally, the June employment report from the Bureau of Labor Statistics, which showed 4.8 million jobs added, and the unemployment rate falling to 11.1%. Both numbers were better than expected.4,5,6
While the employment numbers painted a mostly positive picture, it's important to remember that the June wave of rehiring was prior to the increase in COVID-19 cases, which has caused some states to revisit their re-opening plans.


GAMES - The last time MLB played a shortened regular season that still included post-season play was 1981. After a players' strike that wiped out 52 games per team, the Dodgers won the '81 World Series (source: MLB).

COST OF MONEY WENT DOWN - During the 7 years that the Fed kept short-term interest rates near zero between 12/16/08 and 12/16/15, the average interest rate on a 30-year fixed rate mortgage fell from 5.47% to 3.95% (source: Freddie Mac).

DOLLAR IS KING - 61% of the world's foreign exchange reserves, i.e., cash holdings of central banks around world, were held in US dollars as of the end of calendar year 2019 (source: International Monetary Fund). 7

Monday: Purchasing Managers Index (PMI) Services Index. Institute for Supply Management (ISM) Non-Manufacturing Index.
Tuesday: Job Openings and Labor Turnover Survey (JOLTS).
Thursday: Jobless Claims.
Source: Econoday, July 2, 2020
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.

Tuesday: Paychex (PAYX), Levi Strauss (LEVI).
Wednesday: Bed, Bath & Beyond (BBBY).
Thursday: Delta Airlines (DAL), Walgreens Boots (WBA).
Source: Zacks, July 2, 2020
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.  

To date, only one bachelor has served as President of the United States. Can you name him?
LAST WEEK'S RIDDLE: Can you determine the numeral between 1 and 100 that is also nine times the sum of its digits?
ANSWER: 81. (8+1 = 9, 81 is 9x the sum of 9)

Portfolio Advisory Council, LLC
A Registered Investment Advisory Since 1986
Investment advisory services offered through Portfolio Advisory Council, LLC, and an SEC Registered Investment Adviser.
We cannot accept trade orders through e-mail. Important letters, e-mail, or fax messages should be confirmed by calling 713.574.6015.  This email service may not be monitored every day, or after normal business hours.  

James W. Hamilton, CFS, AIF
W. Thomas Sutton  CFP(R), ChFC, CLU
Philip B. Moran, MBA, ChFC, CFP(R), AIF
John C. Husbands

Visit us at www.pac1000.com 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is a market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor's 500 (S&P 500) is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the "NYSE") and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world's largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions - the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

1. The Wall Street Journal, July 2, 2020
2. The Wall Street Journal, July 2, 2020
3. The Wall Street Journal, July 2, 2020

4. MarketWatch, July 1, 2020
5. CNBC, July 2, 2020
6. The Wall Street Journal, July 2, 2020
7 -  Re production Prohibited without Express Permission - Copyright © 2011 Michael A. Higley

The Wall Street Journal, July 2, 2020
The Wall Street Journal, July 2, 2020
Treasury.gov, July 2, 2020