In this week’s recap: the three Wall Street benchmarks
advance as investors respond to newly scheduled U.S.-China trade talks and see
a silver lining in the latest employment and manufacturing data.
Weekly Economic Update
THE WEEK
ON WALL STREET
Stocks
rose last week, with help from two developments: the announcement of further
U.S.-China trade talks as well as August hiring and manufacturing numbers that
seemed to bolster the argument for a rate cut by the Federal Reserve.
The
broad U.S. equity market, as represented by the S&P 500, added 1.79% during
a 4-day trading week. The Dow Jones Industrial Average improved 1.49%; the
Nasdaq Composite, 1.76%. Foreign shares tracked by the MSCI EAFE index gained
1.69%.1-3
Trade
Talks Poised to Restart
Trade representatives from the U.S. and China
are planning to head back to the negotiating table early next month. This news came Thursday from China’s ministry
of commerce, which confirmed a verbal agreement among Secretary of the Treasury
Steven Mnuchin, U.S. Trade Representative Robert Lighthizer, and Chinese Vice
Premier Liu He.
Formal
trade discussions between the U.S. and China last happened in July. China has
said that it wants punitive U.S. tariffs on its products removed in the event
of a deal.4
Weaker
Hiring & Manufacturing Data
Payrolls
expanded with just 130,000 net new jobs in August, according to the Department
of Labor; 25,000 were temp jobs linked to the federal government’s 2020 Census.
The main jobless rate stayed at 3.7%. The U-6 rate, which measures both
unemployment and underemployment, rose 0.2% to 7.2%.
A
key gauge of U.S. factory activity, the Institute for Supply Management’s
manufacturing purchasing manager index, fell to 49.1 in August. A number below
50 indicates factory sector contraction. Some investors took these hiring and
manufacturing reports as hints of a slowing economy, one which the Federal
Reserve could potentially try to stimulate with an interest rate cut.5,6
WHAT’s
AHEAD
August
inflation data arrives this week, and if looks especially mild, it may amount
to another suggestion that the Fed should ease. The European Central Bank
concludes a meeting on Thursday, and Fed officials will certainly pay attention
to its latest policy statement.7
T I P O F
T H E W E E K
Some consumers pay $100 or more in ATM fees annually because they make withdrawals from third-party ATMs. If you bank with a major lender, try to make ATM withdrawals strictly from their branches.
THE WEEK
AHEAD: KEY ECONOMIC DATA
Friday: The August retail sales
report from the Census Bureau.
Source:
Econoday, September 6, 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
Thursday: Broadcom (AVGO), Kroger
(KR)
Source:
Zacks, September 6, 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
“Life is like a ten-speed
bicycle. Most of us have gears we never use.”
CHARLES M.
SCHULTZ
T H E W E E K L Y
R I D D L E
It is not alive; it
cannot see. Yet it has an eye, and it can make you gasp or cry,
if you are not careful. What might it be?
LAST WEEK’S
RIDDLE: When I was 2 years old, my brother was half my age. Now I am 100 years
old, how old is my brother?
ANSWER: 99.
Half of 2 is 1. 2+98=100, and 1+98=99.
Troy L Thompson, CFP may be reached at 515-432-5421 or troy@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
[9/6/19]
2 - wsj.com/market-data
[8/30/19]
3 - quotes.wsj.com/index/XX/990300/historical-prices [9/6/19]
5 - bloomberg.com/news/articles/2019-09-06/u-s-payrolls-rise-130-000-boosted-by-25-000-for-census-count
[9/6/19]
6 - tradingeconomics.com/united-states/business-confidence
[9/3/19]
7 - cnbc.com/2019/09/06/stocks-look-to-reclaim-their-all-time-highs-in-the-week-ahead.html
[9/6/19]
quotes.wsj.com/index/SPX/historical-prices
[9/6/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldYear&year=2019
[9/6/19]
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