In this week’s recap: the Dow logs an 8-day winning streak
and Treasuries sell off as the mood brightens slightly in the U.S.-China trade
dispute; yearly core inflation reaches a 13-month high.
Weekly Economic Update
THE WEEK
ON WALL STREET
Stocks
edged toward all-time peaks during a relatively calm week marked by easing
trade tensions. Friday marked the eighth straight daily advance for the Dow
Jones Industrial Average.1
Small-cap
shares, as tracked by the Russell 2000 index, rose 4.85% in five days. The
S&P 500 improved 0.96% for the week, while the Dow and Nasdaq Composite
respectively advanced 1.57% and 0.91%. Foreign shares added 1.22%, according to
the MSCI EAFE index.2-4
A Delay
for Planned October Tariff Hikes
Existing
tariffs on $250 billion of Chinese imports were slated to rise from 25% to 30%
on October 1, but the White House decided Thursday to postpone the increase
until October 15, in a “gesture of good will” honoring a request from Chinese
Vice Premier Liu He.
Bloomberg
reported last week that some White House officials were considering an
“interim” trade agreement that could pause some import taxes on Chinese
products, so long as China agrees to buy specific U.S. crops and address
intellectual property concerns.5
More
Risk Appetite
Last
week’s conciliatory gestures between the U.S. and China influenced the bond
market. By Friday’s close, the 10-year Treasury yield had climbed to 1.90%, up
0.35% for the week after a big selloff. (A rise in bond yields generally
reflects a drop in bond prices.)6
Inflation
Pressure Increases
Yearly
core inflation reached a 13-month peak of 2.4% in August, according to the
federal government’s Consumer Price Index. Core inflation (which excludes
volatile food and fuel costs) has now increased for three straight months.7
WHAT’S
NEXT
This
week, traders await the Federal Reserve’s latest policy announcement. Whether
the Fed chooses to cut short-term interest rate, any guidance in the statement
will be highly scrutinized, as Wall Street is eager to discern any hints about
whether the Fed is prepared to continue cutting short-term rates.
T I P O F
T H E W E E K
Smart small-business owners hire a bookkeeper soon after launching their companies. Organized books can point out whether a business is successful and identify the areas in which it can improve.
THE WEEK
AHEAD: KEY ECONOMIC DATA
Wednesday: The Federal Reserve’s
policy announcement is scheduled for 2:00pm EST, and Fed chair Jerome Powell is
slated to address the media at a subsequent press conference.
Thursday: The National Association
of Realtors issues its August existing home sales report.
Source:
Econoday / Federal Reserve, September 13, 2019
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. The release of data may be delayed without notice for a variety of reasons.
THE WEEK
AHEAD: COMPANIES REPORTING EARNINGS
Tuesday: Adobe (ADBE), FedEx (FDX)
Wednesday: General Mills (GIS)
Thursday: Darden Restaurants (DRI)
Source:
Zacks, September 13, 2019
Companies
mentioned are for informational purposes only. It should not be considered a
solicitation for the purchase or sale of the securities. Any investment should
be consistent with your objectives, time frame, and risk tolerance. 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.
Q U O T E O F T H E W E E K
“You cannot shake
hands with a clenched fist.”
INDIRA GHANDI
T H E W E E K L Y
R I D D L E
What has hundreds or
thousands of ears, but can’t hear a thing?
LAST WEEK’S
RIDDLE: It is not alive, it cannot see, yet it has an eye and it can make you
gasp or cry, if you are not careful. What might it be?
ANSWER: A needle.
Troy L Thompson, CF may be
reached at 515-432-5421 or troy@thompsonfinancialinc.com
www.thompsonfinancialinc.com
www.thompsonfinancialinc.com
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Please feel free to send us their contact information via phone or email. (Don’t worry – we’ll request their permission before adding them to our mailing list.)
Troy Thompson, CFP
DBA Thompson Financial and Hanson Asset Strategies
Securities offered through FIRST HEARTLAND CAPITAL, INC.
Member FINRA & SIPC.
Thompson Financial is not affiliated with FIRST HEARTLAND
CAPITAL, INC.
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
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2 - money.cnn.com/data/markets/russell/
[9/13/19]
3 - wsj.com/market-data [9/13/19]
4 - quotes.wsj.com/index/XX/990300/historical-prices [9/13/19]
5 - tinyurl.com/y2obyd4e
[9/12/19]
6 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield
[9/13/19]
7 - investing.com/economic-calendar/core-cpi-736 [9/12/19]
quotes.wsj.com/index/SPX/historical-prices
[9/13/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldYear&year=2019
[9/13/19]
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