In this week’s recap: stocks hit record peaks, then descend
after the Friday release of the June jobs report; further tariffs are planned
for European imports.
Weekly Economic Update
THE WEEK
ON WALL STREET
U.S.
stock benchmarks opened a new quarter positively. The S&P 500 gained 1.65%
in the opening week of July; the Dow Jones Industrial Average, 1.21%; the
Nasdaq Composite, 1.94%. Overseas, stocks in developed markets, tracked by
MSCI’s EAFE index, rose 1.43%.1-4
On
July 3, the S&P posted its latest record close: 2,995.82. On July 5, stocks
fell, slightly, after the Department of Labor released its June employment
report.5
Jobs
Report Beats Expectations
Analysts
polled by Bloomberg thought the economy would add 160,000 net new jobs in June.
Instead, the number was 224,000. The headline unemployment rate ticked up 0.1%
to 3.7%; the U-6 rate, including the underemployed, also rose 0.1% to 7.2%.6
Before
the large June gain was announced, traders were confident that the Federal
Reserve would adjust interest rates this summer. This latest hiring data called
that confidence into question.
More
Tariffs Slated for European Goods
The
federal government plans to levy new import taxes on $4 billion of food and
beverages coming from the European Union, the Office of the U.S. Trade
Representative said last week. This would complement the tariffs on $21 billion
worth of E.U. imports announced in April.7
The
U.S. and E.U. generate more than $1 trillion in commerce through trade
relationships. European exports to the U.S., however, far outweigh U.S. exports
to the E.U.7
WHAT’s
AHEAD
Monday,
July 15 will mark the start of the next earnings season. Money-center banks
report first, followed by companies from a variety of industries.
T I P O F
T H E W E E K
A good, small-business invoice ideally states five things: the timeframe the company gives the client to pay, whether the client is permitted to pay upfront, whether late fees can be charged, the kinds of payments accepted, and if delivery will occur before or after receipt of payment.
THE WEEK
AHEAD: KEY ECONOMIC DATA
Tuesday: Federal Reserve Chairman Jerome Powell delivers
opening remarks at a conference of the Federal Reserve Bank of Boston.
Wednesday: Fed Chair Powell testifies on monetary policy in
Congress, and the Fed also releases the minutes from its June meeting.
Thursday: The June Consumer Price Index appears, showing
monthly and yearly changes in inflation.
Source:
Econoday / MarketWatch Calendar, July 5, 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: PepsiCo (PEP)
Wednesday: Bed Bath & Beyond (BBBY)
Thursday: Delta Air Lines (DAL), Fastenal (FAST)
Source:
Zacks.com, July 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
“All our discontent at what
we lack results from lack of
gratitude for what we have.”
DANIEL DEFOE
T H E W E E K L Y
R I D D L E
LAST WEEK’S
RIDDLE: What is the difference between a schoolboy studying and a farmer
watching his cattle?
ANSWER: One is
stocking his mind, while the other is minding his stock.
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
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2 - quotes.wsj.com/index/DJIA/historical-prices
[7/5/19]
3 - quotes.wsj.com/index/COMP/historical-prices
[7/5/19]
4 - quotes.wsj.com/index/XX/990300/historical-prices [7/5/19]
5 - marketwatch.com/story/sp-500-heads-for-3rd-straight-record-ahead-of-private-sector-jobs-report-2019-07-03
[7/3/19]
CHART CITATIONS:
quotes.wsj.com/index/DJIA/historical-prices
[7/5/19]
tradingview.com/markets/indices/quotes-us/
[7/5/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldYear&year=2019
[7/5/19]
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