XPO Logistics is a diversified trucking and logistics company, built mostly via acquisition (until 2016). Following the third-quarter 2021 spin-off of its global contract logistics division (outsourced warehousing and supply-chain services), XPO’s portfolio reflects its transportation operations--asset-based less-than-truckload shipping (33% of gross revenue), asset-light freight brokerage including intermodal and truck brokerage (29%), heavy goods last mile delivery (8%), and its European truckload and LTL operations (24%). The remainder of revenue stems from managed transportation and global forwarding services.

Stocks were mixed on Wednesday morning as investors weighed earnings reports from Alphabet, Apple, and Microsoft, and awaited the Fed's policy statement and comments from Fed Chair Jerome Powell this afternoon. Investors will be closely scrutinizing Mr. Powell's comments regarding the state of the economy, the impact of the Delta variant, and the timing of any reduction in the central bank's bond buying program. The Dow fell 0.1%, the S&P rose 0.1%, and the Nasdaq rose 0.7%. Crude oil traded near $72 per barrel, while gold fell $3 to $1797 per ounce.

Stocks fell on Tuesday morning amid continued Delta variant concerns as investors awaited earnings from a range of major tech companies. The Commerce Department said that U.S. core capital goods orders excluding aircraft rose 0.5% in June, in line with the prior month but below the Reuters consensus forecast of 0.7%. Meanwhile, the Conference Board reported that its July consumer confidence index rose slightly to 129.1 and topped the consensus of 123.9. The Dow fell 0.4%, the S&P 0.7%, and the Nasdaq 1.7%. Crude oil traded near $71.50 per barrel, while gold rose to $1802 per ounce.

The onset of the coronavirus in 2020 knocked the stock market into a bear market. Though stocks have recovered, the U.S. economy is about to slow down and COVID-19 cases are rising again as virus variants spread. Volatility, which has dropped from the highs of 2020, still has not returned to pre-COVID levels. Daily prices can swing wildly, as they did during two consecutive days in mid-July when the Dow Jones Industrial Average plummeted more than 1,000 points. Yet investors exit the stock market at their own peril, as long-term returns from equities consistently have outpaced long-term returns from other asset classes. Argus believes that Min Vol is an all-weather strategy that is timely in any investing climate and can deliver market-matching returns on an absolute basis and superior returns on a risk-adjusted basis over various time periods.

The stock market moved higher last week as the market digested a busy earnings week. Tech stocks outperformed blue chips as earnings came in very strong in portions of the tech sector. During Friday's session, the Dow Jones Industrial Average increased 238 points, or 0.68%. The S&P 500 was up 1.01%, and the Nasdaq Composite was up 1.04%. For the week, the DJIA was up 374 points, or 1.08%, the S&P 500 was up 1.96%, and the Nasdaq Composite was up 2.84%. Year-to-date, the DJIA is up 14.56%, the S&P 500 is up 17.46%, and the Nasdaq Composite is up 15.12%.

Stocks Stumble as the Economy Moves Ahead

The latest run higher in West Texas Intermediate (WTI) recently reached our target in the upper $70s/barrel, as WTI hit an intraday high of $77 on July 6. This was followed by a sharp reversal, with WTI closing that day at $73.37. The next day, oil fell intraday to $71. After a bit of recovery, crude was hit again yesterday, but held the $72 area. So no technical damage, yet. Gasoline futures fell to $2.17/gallon last Tuesday, but have recovered to $2.29.