In this week’s recap: Wall Street finishes August with a
rally, China decides to pause a potential response to oncoming U.S. tariffs,
and two consumer confidence indices send different messages.
Weekly Economic Update
THE WEEK
ON WALL STREET
Fears
of an impasse in the U.S.-China trade dispute lessened last week. While
additional U.S. tariffs on Chinese imports were scheduled to take effect on
September 1, China’s government communicated that it would refrain from taking
retaliatory measures for the moment.
U.S.
stock benchmarks advanced during the week. The S&P 500 rose 2.79% across
five trading days, and the Nasdaq Composite and Dow Jones Industrial Average
respectively gained 2.72% and 3.02%. The MSCI EAFE international index added
just 0.25%.1,2
Positive
News in the Trade Dispute
Thursday,
a spokesman for China’s commerce ministry said that negotiations could resume
this month, and that discussions need to focus on “removing the new tariffs to
prevent escalation.”
In
addition, officials in Beijing indicated they would hold off on responding to
the U.S. tariff hikes announced Friday by the White House.3
Mixed
Consumer Confidence Signals
The
Conference Board’s monthly Consumer Confidence Index was at 135.1 in August.
Analysts polled by Reuters had projected a reading of 129.5. Consumers’ view of
the present economic situation was the best since November 2000.
On
the other hand, the University of Michigan’s monthly Consumer Sentiment Index
(based on a different collection of survey data) dropped 8.6 points during
August to 89.8; that was its biggest monthly descent in nearly seven years.4,5
WHAT’s
NEXT
After
a pause for the Labor Day holiday, U.S. financial markets have an abbreviated
trading week. The August jobs report may influence Friday’s Wall Street
session, and any news pertaining to U.S.-China trade talks could also influence the markets.
T I P O F
T H E W E E K
If you still receive paper bank statements, you should know that there could be a financial perk for going digital: some financial institutions may offer you lower fees in return for your choice to manage your money online.
THE WEEK
AHEAD: KEY ECONOMIC DATA
Tuesday: The Institute for Supply
Management releases its August Purchasing Managers Index (PMI) for the factory
sector, assessing U.S. manufacturing activity.
Thursday: ISM presents its August
PMI for the service sector, and payroll giant ADP publishes its latest
private-sector employment snapshot.
Friday: The Department of Labor
offers its August employment report.
Source:
Econoday / MarketWatch Calendar, August 30, 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
Wednesday: Palo Alto Networks
(PANW), Slack Technologies (WORK)
Thursday: Lululemon Athletica
(LULU)
Source:
Zacks, August 30, 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
“Take rest; a field
that has rested gives a bountiful crop.”
OVID
T H E W E E K L Y
R I D D L E
When I was 2 years old,
my brother was half my age. Now I am 100 years old, how old is my
brother?
LAST WEEK’S
RIDDLE: A crook steals $100 from a cash register. The crook returns an hour
later with the same $100 and buys $70 in items, receiving $30 in change. How
much does the merchant lose?
ANSWER: $100.
The shop loses $70 worth of goods, plus $30 dollars in cash. It is as if the
merchant gave the goods out for free as well as $30.
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.
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1 - wsj.com/market-data
[8/30/19]
2 - quotes.wsj.com/index/XX/990300/historical-prices [8/30/19]
3 -
marketwatch.com/story/dow-futures-up-over-250-points-as-china-tamps-down-fears-of-further-trade-war-escalation-2019-08-29
[8/29/19]
5 - sca.isr.umich.edu/ [8/30/19]
quotes.wsj.com/index/SPX/historical-prices
[8/30/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield
[8/30/19]
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