Weekly Economic Update
Stocks
drifted lower last week as investors considered the possibility that the
world’s two largest economies might take some time to resolve key trade issues.
The
S&P 500 retreated 1.17%; the Nasdaq Composite, 2.29%; the Dow Jones
Industrial Average, 0.69%. The concern over trade was felt elsewhere: the
overseas developed markets benchmark, the MSCI EAFE, also lost 1.41% in five
trading sessions.1,2
A
compromise on tariffs between the U.S. and China did not seem forthcoming last week.
Negotiations appeared stalled. Regardless, President Trump and Chinese
President Xi are slated to meet at June’s G20 summit in Japan.
The
Department of Commerce has effectively banned U.S. companies from doing
business with Chinese tech giant Huawei, a major global player in 5G
technology. Some analysts think China may respond with retaliatory measures.3
Big-box
stores and other major retail chains announced first-quarter results last week.
While some traditional department store chains disappointed (Kohl’s, JC Penney,
Nordstrom), Macy’s recorded its sixth straight quarter of comparable sales
growth. Target reported a 10.8% jump in earnings in the first quarter, Walmart
announced Q1 gains in earnings and revenue, and Urban Outfitters saw record
sales in Q1.4,5
Any companies mentioned are for informational purposes only, and
this should not be considered a solicitation for the purchase or sale of their
securities. Any investment should be consistent with your objectives, time
frame, and risk tolerance.
As
new chapters in the U.S.-China trade drama continue to unfold, remember that
your investment approach is built around your long-term objectives and risk
tolerance. There will always be day-to-day price changes; there will always be
breaking news alerts. The disciplined, long-term investor stays the course
through the ups and downs.
Young adults can potentially see significant auto insurance savings if their parents include them on their policy. That is permissible as long as the younger driver is under a certain age and either still living at home or living on a college campus.
Tuesday: The
Conference Board’s latest monthly consumer confidence index.
Friday: May consumer
spending numbers and May’s final University of Michigan consumer sentiment
index (another important measure of consumer confidence levels).
Source:
Econoday / MarketWatch Calendar, May 24, 2019
The Econoday and MarketWatch economic calendars list upcoming U.S.
economic data releases (including key economic indicators), Federal Reserve
policy meetings, and speaking engagements of Federal Reserve officials. 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 WEEK AHEAD: COMPANIES REPORTING
EARNINGS
Wednesday: Dick’s Sporting Goods (DKS), PVH
(PVH)
Thursday: Costco (COST), Dell (DELL), Dollar
General (DG), Ulta Beauty (ULTA)
Source:
Morningstar.com, May 24, 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
“The successful
person knows how to put energy into
time and how to draw success from
time.”
DENIS
WAITLEY
T H E W E E
K L Y R I D D L E
If I say, "everything I tell you is a
lie," am I telling you the truth
or a lie?
LAST
WEEK’S RIDDLE: Can you name two perennial vegetables? (That is, vegetables that
don’t need to be replanted and can live on to produce in a future growing
season?)
ANSWER:
Asparagus and rhubarb.
Troy L Thompson, CFP may be reached at 515-432-5421
or troy@thompsonfinancialinc.com
www.thompsonfinancialinc.com
www.thompsonfinancialinc.com
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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.
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1 - wsj.com/market-data
[5/24/19]
2 - quotes.wsj.com/index/XX/990300/historical-prices [5/24/19]
3 - cnbc.com/2019/05/21/tech-stocks-are-feeling-the-pain-but-may-emerge-better-off-after-trade-war.html
[5/21/19]
quotes.wsj.com/index/SPX/historical-prices
[5/24/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield
[5/24/19]
