Weekly Macro Minute

Carl Gallion authored this issue’s devotional. He served the Lord alongside his wife, Cassie, for 42 years.

"Philip answered him, 'Two hundred pennyworth of bread is not sufficient for them, that every one of them may take a little.'" John 6:7 (KJV)

Philip's reply came in response to Jesus' question: "Whence shall we buy bread, that these may eat?" As Philip looked around and saw the multitude of hungry people, he was overwhelmed by the enormity of the situation. It didn't take long for him to realize that all they had would be insufficient to meet such a need. That evoked his admission that "all we have is not enough."

I am sure Philip must have felt somewhat defeated when he had to admit there was very little they could do to help these people. I understand such feelings. As a pastor, I have often heard the cries and felt the pain of hurting people. And like Philip, I have had to admit that all I have — and everything I could do — wouldn't be enough to silence their cries or stop their pain.

There are those in ministry, however, who seem to have all the answers for all of life's problems. I question the credibility of such a ministry that attempts to do what only an omnipotent God can bring to pass. Unknowingly, Philip had given the exact response Jesus was waiting to hear. Jesus knew all along what he would do and what needed to be done. However, he was waiting for Philip and the other disciples to confess that they were inadequate in themselves to meet such demands. By their admission, this meant they would have to trust him to do what seemed impossible.

This is the realm where the Christian lives. Each day, we face insurmountable demands and incredible obstacles along our journey. The sooner we admit to our own insufficiency for the task, the sooner Jesus can begin to provide a way for us. Jesus took a little and made much out of it, enough to feed everyone present and have food left over. The lesson here is that a little becomes a lot when placed in the hands of Jesus.

I encourage those of you who are reading this to simply admit that all you have is not enough to meet the demands that life places upon you and those you love. But when you give what you have to Jesus, it is simply amazing what He can do with it and how blessed you become by giving it.

What area of your life feels “not enough,” and how can you place it in Jesus' hands today?

Small caps lead as equities consolidate gains

• U.S. equities finished mixed as investors paused following the prior week’s rally.
• The S&P 500^® rose 0.4%, while the Russell 2000^® gained 1.2% and reached a new record high during the week.

Earnings season closes on a strong note

• Second-quarter earnings season finished with impressive results, supported by both revenue and profit growth.
• S&P 500^® companies are on pace for revenue growth of roughly 15% and earnings growth exceeding 50%.
• Results continued to demonstrate resilience across the corporate sector despite economic and geopolitical uncertainty.

Yield curve steepens

• Treasury yields were mixed as inflation data cooled, but long-term rates remained pressured by supply and fiscal concerns.
• The 2-year Treasury yield fell to 4.17%, while the 30-year Treasury yield remained near its highest level since 2007.
• Long-duration Treasury auctions reflected continued pressure on the long end of the curve.

Energy rebounds on renewed uncertainty

• Energy was the best-performing sector of the week.
• WTI crude rose 5.7% to above $82 per barrel as uncertainty surrounding shipping activity through the Strait of Hormuz resurfaced.
• Energy’s year-to-date gains approached 40%.

European equities pull back

• European stocks declined modestly as geopolitical concerns offset resilient economic data and generally positive earnings results.
• Germany outperformed many regional peers despite broader weakness across the continent.

European growth remains resilient

• Investor confidence continued improving across the eurozone.
• Economic activity remained supported by positive growth trends, though energy-related supply disruptions began creating new challenges.

Japan rallies on technology strength

• Japanese equities posted strong gains supported by memory and technology companies.
• Financials also advanced as investors anticipated additional policy tightening from the Bank of Japan.

China faces mixed conditions

• Chinese equities moved lower despite easing inflation pressures.
• Policymakers continued implementing measures aimed at supporting housing and broader economic activity.
• Asian markets outside China generally performed well, led by gains in South Korea and Taiwan.

Inflation continues to cool

• July inflation data came in largely as expected and showed further moderation.
• Headline CPI rose 3.4% year over year, while core (ex. energy and food) CPI increased 2.5%.
• Producer prices also showed easing pressure, reinforcing the broader disinflation trend.

Federal Reserve hike expectations decline

• Cooling inflation caused markets to lower expectations for additional Fed tightening.
• Rate hike probabilities for September fell notably throughout the week.

Consumer spending weakens

• Retail sales fell 0.6% in July, marking the largest monthly decline in more than a year.
• The report suggested consumers may be becoming more cautious after an extended period of resilience.

Consumer confidence deteriorates

• Consumer sentiment declined in August following two months of improvement.
• Inflation expectations moved slightly higher even as actual inflation continued to ease.