In this week’s recap: stocks rise with help from a
reassuring March employment report as well as news of further progress in U.S.-China
trade talks.
Weekly Economic Update
Presented by Troy L Thompson, CFP, April 8, 2019
THE WEEK
ON WALL STREET
Stocks
posted their second straight weekly gain. The Dow Jones Industrial Average
gained 1.17% in five trading days; the S&P 500, 1.27%; the Nasdaq Composite,
1.72%. The MSCI EAFE index of international stocks rose 1.84%.1-4
Investors
got some good news last week: an encouraging employment report and indications
that a new U.S.-China trade deal might be near.
A Solid
Hiring Report
The
economy generated 196,000 net new jobs in March, according to the Department of
Labor. Monthly job growth averaged 180,000 in the first quarter.
The
March hiring recovery eased Wall Street concerns about a near-term economic
downturn. If payroll growth is this strong in April and May, the Federal
Reserve may be motivated to rethink its pause of interest rate hikes.5
Another
Step in the Trade Talks
Chinese
Vice Premier Liu He said last week that the U.S. and China have come to a
consensus on the basics of a new trade accord. President Trump commented
Thursday that “the next four weeks” of negotiations will be critical.6
What’s
Next
The
first-quarter earnings season kicks off this week with three of the biggest
banks in the country reporting results. The question is whether stocks in the
S&P 500 will post earnings that beat analyst expectations to the degree
that they have in the past few quarters.
T I P O F
T H E W E E K
A new business owner should have some cash available for professional services, such as legal or accounting help. Those services will probably be necessary before the business receives any funding.
THE WEEK
AHEAD: KEY ECONOMIC DATA
Wednesday: Minutes from the March Federal Reserve meeting,
plus the latest Consumer Price Index, tracking monthly and yearly inflation.
Friday: The initial University of Michigan consumer
sentiment index for April, which assesses consumer confidence.
Source:
Econoday / MarketWatch Calendar, April 5, 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
Wednesday: Bed Bath & Beyond (BBBY), Delta Air Lines (DAL)
Thursday: Fastenal (FAST), Rite Aid (RAD)
Friday: JPMorgan Chase (JPM), PNC (PNC), Wells Fargo (WFC)
Source:
Morningstar.com, April 5, 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
“If you want the rainbow, you
gotta put up with the rain.”
DOLLY PARTON
T H E W E E K L Y
R I D D L E
What is the timepiece with the most moving parts? (It has been around for centuries.)
LAST WEEK’S
RIDDLE: What is the only planet within our solar system that rotates clockwise?
ANSWER: Venus.
Troy L Thompson, CFP may be
reached at 515-432-5421 or www.thompsonfinancialinc.com
www.thompsonfinancialinc.com
www.thompsonfinancialinc.com
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CITATIONS:
4 - quotes.wsj.com/index/XX/990300/historical-prices
[4/5/19]
5 - cnn.com/2019/04/05/economy/march-jobs-report/index.html
[4/5/19]
6 - cnbc.com/2019/04/05/stock-market-us-china-trade-nonfarm-payrolls-in-focus.html
[4/5/19]
CHART CITATIONS:
markets.wsj.com [4/5/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldYear&year=2019
[4/5/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldAll
[4/5/19]
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