In this week’s recap: domestic and international stocks sell
off as higher tariffs go into effect for Chinese goods coming to the U.S.,
while the wave of notable initial public offerings continues.
Weekly Economic Update
As
we noted recently, Wall Street has a wandering eye. Last week, it focused on
the new tariff threats in the ongoing U.S.-China trade dispute. Stocks fell
across five trading sessions: the Dow Jones Industrial Average lost 2.12%; the
S&P 500, 2.18%; the Nasdaq Composite, 3.03%. International stocks also
fell: the MSCI EAFE index declined 3.06%.
Earnings
and big-name initial public offerings mattered little last week. Traders were
more concerned about how consumers and corporations might be affected by higher
import taxes in future quarters.1,2
TARIFFS
INCREASE
At
12:01 am on Friday, duties on $200 billion worth of Chinese products coming to
the U.S. rose from 10% to 25%. Just days earlier, President Trump had tweeted
that the U.S. might also tax another $325 billion of Chinese imports, mainly
consumer goods.
While
the proposed new taxes might take months to implement, institutional investors
reacted negatively to this information, perceiving that trade talks were
stalled.3,4
FINAL THOUGHT
A
few weeks ago, market watchers noted the huge number of initial public
offerings anticipated for 2019. One well-known tech firm completed its IPO on
Friday, and the wave of tech IPOs is still building. According to research firm
CB Insights, the average stock market valuation of the venture-capital-backed
tech companies going public this year is $9.6 billion.
T I P O F
T H E W E E K
Getting married? Think about whether you want to keep your finances separate or create some joint investment and bank accounts. If you want a joint investment account, you will need to agree on the investment style.
THE WEEK
AHEAD: KEY ECONOMIC DATA
Wednesday: April retail sales figures from the Census Bureau.
Friday: The University of Michigan’s preliminary May
consumer sentiment index, a measure of consumer confidence.
Source:
Econoday / MarketWatch Calendar, May 10, 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
Monday: Take-Two Interactive (TTWO)
Tuesday: Agilent (A), Ralph Lauren (RL)
Wednesday: Alibaba (BABA), Cisco (CSCO), Macy’s (M)
Thursday: Applied Materials (AMAT), Nvidia (NVDA), Walmart
(WMT)
Friday: Deere & Co. (DE)
Source:
Morningstar.com, May 10, 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 possible’s slow fuse is lit by the imagination.”
EMILY DICKINSON
T H E W E E K L Y
R I D D L E
Name three words in everyday English that begin with the letters “dw.”
LAST WEEK’S
RIDDLE: 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?
ANSWER: Night
and day.
Troy L Thompson, CFP may be reached at 515-432-54-21
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
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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
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Indices do not incur management fees, costs and expenses, and cannot be
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2 - quotes.wsj.com/index/XX/990300/historical-prices [5/10/19]
3 - cnn.com/2019/05/10/business/china-us-tariffs-trade/index.html
[5/10/19]
5 - nytimes.com/interactive/2019/05/09/business/dealbook/tech-ipos-uber.html
[5/9/19]
quotes.wsj.com/index/SPX/historical-prices
[5/10/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield
[5/10/19]
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