In this week’s recap: stocks rise, data shows economic
growth slowing from the first quarter, and the stage is set for further
U.S.-China trade discussions.
Weekly Economic Update
Last week, investors assessed
earnings and the initial estimate of second-quarter economic growth, while
awaiting the Federal Reserve’s next announcement about interest rates.
Stocks rose for the week;
particularly, tech shares. The S&P 500 gained 1.65%; the Nasdaq Composite,
2.26%. The Dow Jones Industrial Average lagged, adding just 0.14%. MSCI’s EAFE
index, a gauge of equity performance in developed foreign markets, ticked up
0.01%.,1,2
Economy Grew Moderately in Q2
Analysts surveyed by Dow
Jones Newswires had forecast 2.0% GDP for the second quarter. The actual
estimate, announced Friday by the Bureau of Economic Analysis, was slightly
better at 2.1%.3
While this is the poorest
quarterly GDP number since the opening quarter of 2017, the decline in GDP
largely reflects a decrease in business investment. Consumer spending improved
4.3% in Q2, and government spending rose 5.0%, which was the biggest quarterly
gain in a decade.3
China Trade Talks to Restart
U.S. trade delegates are
scheduled to resume face-to-face negotiations with their Chinese counterparts,
starting Tuesday in Shanghai.
This renewed effort to forge
a bilateral trade pact could go on for some time. Secretary of the Treasury
Steven Mnuchin, who is part of the U.S. delegation, told reporters last week
that it would likely take “a few more meetings” before any kind of accord can
be considered.4
WHAT’s
NEXT
Wednesday
at about 2:00pm EST, the Federal Reserve is scheduled to conclude its July
meeting. Wall Street is eager to see what the Fed will do with interest rates.
The question is whether traders have priced in expectations of a cut and how
they may react if no cut comes.
T I P O F
T H E W E E K
When it comes to insuring your residence, remember that the right amount of coverage is based on what it costs you to replace your home, not just to reconstruct it. Some homeowners underinsure their homes and end up paying some rebuilding or repair costs out of pocket after a calamity.
THE WEEK
AHEAD: KEY ECONOMIC DATA
Tuesday: The federal government’s
June personal spending report and the Conference Board’s monthly index of
consumer confidence.
Wednesday: The Federal Reserve
presents its latest statement on interest rates and monetary policy, and
payroll titan ADP offers its July private-sector employment snapshot.
Thursday: The latest report on
American manufacturing from the Institute for Supply Management.
Friday: July jobs data from the
Department of Labor and the University of Michigan’s final July Consumer Sentiment
Index, measuring household confidence in the economy.
Source:
Econoday / MarketWatch Calendar, July 26, 2019
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 release of data may be delayed without notice for a variety of
reasons.
THE WEEK
AHEAD: COMPANIES REPORTING EARNINGS
Tuesday: Apple (APPL), Mastercard
(MA), Merck (MRK), Pfizer (PFE), Procter & Gamble (PG)
Wednesday: General Electric (GE),
Qualcomm (QCOM)
Thursday: Royal Dutch Shell (RDS.A),
Verizon (VZ)
Friday: Berkshire Hathaway
(BRK.B), Chevron (CVX), ExxonMobil (XOM), Toyota (TM)
Source:
Zacks, July 26, 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
“To succeed, planning
alone is insufficient. One must improvise as well.”
ISAAC ASIMOV
T H E W E E K L Y
R I D D L E
LAST WEEK’S
RIDDLE: I’m a word that’s hardly there. Take away my start, and I’m an herbal
flair. What am I?
ANSWER: Parsley
(Sparsely, minus the S = Parsley).
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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1 - wsj.com/market-data
[7/26/19]
2 - quotes.wsj.com/index/XX/990300/historical-prices [7/26/19]
3 - cnbc.com/2019/07/26/us-gdp-second-quarter-2019.html
[7/26/19]
4 - reuters.com/article/us-usa-trade-china/top-us-china-trade-negotiators-to-meet-in-shanghai-next-week-idUSKCN1UJ1JI
[7/24/19]
quotes.wsj.com/index/SPX/historical-prices
[7/26/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield
[7/26/19]
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