Oil prices keep falling despite attempts by OPEC+ to prop up prices.

Freepik

However, demand is down, and more supply is coming online. Lower prices mean countries need to increase oil output to keep revenue flat. In turn, low oil prices are causing gas prices to decline. It’s a fortuitous cycle because gas prices are a volatile inflation component.

That said, many global economies are struggling, but the data shows the United States is performing well. In fact, it is performing better than before the pandemic. According to the Bureau of Labor Statistics, two million more jobs exist than before the pandemic. The U.S. real GDP keeps rising and is greater than predicted. A lot can be traced to the massive amounts of stimulus that stoked demand and kept people employed during the pandemic.

At the risk of sounding like a broken record, the Utility sector is undervalued. However, the recent recovery in the sector has caused prices to rise and yields to fall. That said, plenty of deals still exist.

Stock Market Overview

Data from Stock Rover* shows that the stock market had yet another positive week, the sixth one in a row. That said, the week was volatile. The Russell 2000 finished first, followed by the Nasdaq Composite, the S&P 500 Index, and the Dow Jones Industrial Average (DJIA).

Six of the 11 sectors increased this week. The top performers were the Consumer Cyclical, Communication Services, and Technology sectors. However, the Consumer Defensive, Basic Materials, and Energy sectors were the worst performers. The Energy sector had an abysmal week because of lower oil prices.

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