In this week’s recap: the Federal Reserve stands pat on
interest rates, key indicators show strength, and stocks end the week little
changed.
Weekly Economic Update
THE WEEK
ON WALL STREET
Stocks
were up and down last week, and the three major benchmarks ended up little
changed after five trading days. The S&P 500 rose 0.20% for the week; the
Nasdaq Composite, 0.22%. The Dow Jones Industrial Average declined 0.14%.
The
MSCI EAFE index, a benchmark for international stocks, declined 0.21%.1-2
The Fed
Emphasizes Patience
The
Federal Reserve held interest rates steady at its May meeting. Its May 1 policy
statement noted “solid” job growth and economic activity, but only tame
inflation pressure.
While
the Fed was not expected to make a move, some investors wondered if its latest
policy statement might hint at the possibility of a rate cut later this year.
No such hint appeared. Fed chair Jerome Powell told the media Wednesday that
“we don’t see a strong reason for moving in one direction or the other.”3
Indications
of a Thriving Economy
Employers
added 263,000 net new jobs in April. Economists polled by Bloomberg forecast a
gain of 190,000. The jobless rate fell to 3.6% last month, the lowest in half a
century.
This
better-than-expected employment snapshot comes on the heels of a first-quarter
GDP reading that surprised to the upside. In another bit of good news, personal
spending rose an impressive 0.9% in March.4-5
Final
Thought
On
Wednesday and Thursday, stocks fell in the wake of the Fed policy statement.
Friday, they more or less recouped their losses after the impressive April jobs
report. Ups and downs like these come with the territory when you invest; the
key is to stay patient and think long term instead of short term.
T I P O F
T H E W E E K
If you are young and want to make financial progress out of college, consider starting your career in a metro area where housing and living expenses are relatively low. Some of the most “exciting” cities to live and work in are also some of the priciest, with their millennial and Gen Y residents deeply in debt.
THE WEEK
AHEAD: KEY ECONOMIC DATA
Source:
Econoday / MarketWatch Calendar, May 3, 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.
Econoday Inc. is a technology and information company providing data and
analysis for the financial industry, participants in the financial community,
and individual investors. MarketWatch, a financial information website, is a
subsidiary of Dow Jones & Company, a property of News Corp. 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 are also subject to revision. The release of data
may be delayed without notice for a variety of reasons, including the shutdown
of the government agency or change at the private institution that handles the
material.
THE WEEK
AHEAD: COMPANIES REPORTING EARNINGS
Monday: Occidental Petroleum (OXY), Tyson Foods (TSN)
Tuesday: Allergan (AGN), Anheuser-Busch (BUD), Lyft (LYFT)
Wednesday: Green Dot (GDOT), Hostess Brands (TWNK), Walt
Disney Co. (DIS)
Thursday: AXA Equitable Holdings (EQH), Keurig Dr. Pepper
(KDP), News Corp. (NWSA)
Friday: Enbridge (ENB), Marriott International (MAR),
Viacom (VIA)
Source:
Morningstar.com, May 3, 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
“Do not go where the path may
lead, go instead where there is no path and leave a trail.”
RALPH WALDO
EMERSON
T H E W E E K L Y
R I D D L E
There are two friends: one
always goes to sleep as the other wakes up, and vice versa. They never see one another. What are they?
LAST WEEK’S
RIDDLE: It walks on four legs in the morning, two legs at noon, and three legs
in the evening. What is it?
ANSWER: A
human. A baby crawls on all fours, then walks on two legs as an adult, and uses
two legs and a cane when old.
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.
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
accurate. Please note - investing involves risk, and past performance is no
guarantee of future results. Investments will fluctuate and when redeemed may
be worth more or less than when originally invested. This information should
not be construed as investment, tax or legal advice and may not be relied on
for the purpose of avoiding any Federal tax penalty. This is neither a
solicitation nor recommendation to purchase or sell any investment or insurance
product or service, and should not be relied upon as such. All market indices
discussed are unmanaged and are not illustrative of any particular investment.
Indices do not incur management fees, costs and expenses, and cannot be
invested into directly. All economic and performance data is historical and not
indicative of future results. The Dow Jones Industrial Average is a
price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ
Composite Index is a market-weighted index of all over-the-counter common
stocks traded on the National Association of Securities Dealers Automated
Quotation System. The Standard & Poor's 500 (S&P 500) is a market-cap
weighted index composed of the common stocks of 500 leading companies in
leading industries of the U.S. economy. NYSE Group, Inc. (NYSE:NYX) operates
two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE
Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific
Exchange). NYSE Group is a leading provider of securities listing, trading and
market data products and services. The New York Mercantile Exchange, Inc.
(NYMEX) is the world's largest physical commodity futures exchange and the
preeminent trading forum for energy and precious metals, with trading conducted
through two divisions – the NYMEX Division, home to the energy, platinum, and
palladium markets, and the COMEX Division, on which all other metals trade.
Additional risks are associated with international investing, such as currency
fluctuations, political and economic instability and differences in accounting
standards. This material represents an assessment of the market environment at
a specific point in time and is not intended to be a forecast of future events,
or a guarantee of future results. MarketingPro, Inc. is not affiliated with any
person or firm that may be providing this information to you. The publisher is
not engaged in rendering legal, accounting or other professional services. If
assistance is needed, the reader is advised to engage the services of a
competent professional.
CITATIONS:
2 - quotes.wsj.com/index/XX/990300/historical-prices [5/3/19]
3 - bankrate.com/banking/federal-reserve/fomc-meeting-recap-april-may-2019
[5/1/19]
4 - nytimes.com/2019/05/03/business/economy/jobs-report-april.html
[5/3/19]
5 - marketwatch.com/tools/calendars/economic [5/3/19]
CHART CITATIONS:
markets.wsj.com/usoverview [5/3/19]
quotes.wsj.com/index/SPX/historical-prices
[5/3/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldAll
[5/3/19]
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