In this week’s recap: the major Wall Street equity indices
see further June gains, oil investors react to tanker attacks, and retail sales
improve.
Weekly Economic Update
THE WEEK ON WALL STREET
The
market seemed to put its recent preoccupation with trade issues aside, with
attention shifting to this week’s Federal Reserve monetary policy meeting.
Traders in futures markets now believe the Fed will make a rate cut in July, so
its June policy statement will be of great interest.3
Oil Prices Rollercoaster
Attacks
on vessels in the Strait of Hormuz, the busy oil shipping channel, helped to
push the price of West Texas Intermediate crude 2.2% higher Thursday, just a
day after a 4% fall. Even so, WTI crude lost 2.7% in five days, closing Friday
at $52.51 on the New York Mercantile Exchange.
Investors
wondered at mid-week if tensions in the Persian Gulf region would soon impact
oil output and transport. Looking beyond the short term, however, the
International Energy Agency reduced its 2020 projection for global oil demand.4
Households Bought More in
May
Retail
sales rose 0.5% last month, according to the Department of Commerce. Across the
year ending in May, they advanced 3.2%. The previously announced 0.2% April
retreat was revised into a 0.3% gain.
These
numbers affirm strong household spending this spring. Consumer spending
accounts for more than two-thirds of the nation’s gross domestic product.5
WHAT’S AHEAD
In terms of news, Wednesday offers what may prove to
be the biggest economic event of the week: a Federal Reserve policy statement
and press conference.
T I P O
F T H E W E E K
Some people take out personal loans to pay off high-interest credit card debts. For some, this is a worthwhile financial move – but it has potential drawbacks. It can feel like exchanging one debt for another, and the conditions or behaviors that created the original credit card debt may remain.
THE WEEK AHEAD: KEY ECONOMIC DATA
Wednesday: The Federal Reserve concludes a 2-day policy meeting, with Fed chair
Jerome Powell addressing the media afterward.
Friday: The National Association of Realtors releases data on May existing home sales.
Source:
Econoday / MarketWatch Calendar, June 14, 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
Tuesday: Jabil
(JBL)
Wednesday: Kraft
Heinz (KHC), Oracle (ORCL)
Thursday: Kroger
(KR), Red Hat (RHT), Darden Restaurants (DRI)
Friday: CarMax
(KMX)
Source:
Zacks.com, June 14, 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
“It's hard to beat a person who never
gives up.”
BABE
RUTH
T H E W E E
K L Y R I D D L E
What is the worst vegetable to have on a ship?
LAST
WEEK’S RIDDLE: What is taken before you can get it?
ANSWER:
Your picture.
Troy L Thompson 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
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avoiding any Federal tax penalty. This is neither a solicitation nor
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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.
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York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the
Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a
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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
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reader is advised to engage the services of a competent professional.
2 - quotes.wsj.com/index/XX/990300/historical-prices [6/14/19]
3 - cnbc.com/2019/06/14/stock-market-middle-east-tensions-weigh-china-data-in-focus.html
[6/14/19]
4 - marketwatch.com/story/oil-prices-steady-as-market-keeps-watch-on-strait-of-hormuz-after-tanker-attacks-2019-06-14
[6/14/19]
5 - cnbc.com/2019/06/14/retail-sales-may-2019.html
[6/14/19]
CHART CITATIONS:
quotes.wsj.com/index/SPX/historical-prices [6/14/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield
[6/14/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldAll
[6/
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