Weekly Economic Update
THE WEEK
ON WALL STREET
The S&P 500 came within
0.1% of a record close Friday. Stocks were lifted last week by positive news on
U.S.-China trade negotiations, plus earnings announcements.
The Nasdaq Composite posted
the largest weekly gain of the three major U.S. stock indices. It rose 1.90%.
Last week also brought gains of 0.70% for the Dow Jones Industrial Average and
1.22% for the S&P. The MSCI EAFE, a benchmark for developed stock markets
outside the U.S., rose 1.14%.1,2,3
Another
Hint of Progress in Trade Talks
Friday,
the Office of the U.S. Trade Representative stated that parts of a new trade
deal with China were near completion. No specifics were given as of Friday’s
close, but the USTR noted that negotiators had “made headway” on key issues.
Analysts
think both sides may cancel certain tariffs as part of a deal. President Trump
has said that he would like to sign a new trade accord with China’s President,
Xi Jinping, next month.4
A Gain
for Consumer Sentiment
Rising
to a final October mark of 95.5, the University of Michigan’s Consumer Sentiment
Index advanced 2.3 points month-over-month. During August and September, the index’s
level varied from 89.8 to 93.2.5
What’s
Next
The
Federal Reserve meets this week. Will it make another interest rate cut? And if
it does, could it be the last rate cut for a while? Traders will study the
language of the statement and listen carefully to Fed chair Jerome Powell’s
Wednesday press conference for clues.
T I P O F
T H E W E E K
This is the time of year to think about year-end charitable gifts. Consider and research organizations you might wish to donate to and inquire about the possible tax advantages that could come from those contributions.
THE WEEK
AHEAD: KEY ECONOMIC DATA
Tuesday: The Conference Board presents its October Consumer Confidence
Index.
Wednesday: The Federal Reserve makes its latest statement on
monetary policy, and Automatic Data Processing (ADP) publishes its October
private-sector payrolls report.
Thursday: The Department of Commerce offers September
consumer spending data.
Friday: November begins with the Department of Labor’s
October jobs report and the Institute for Supply Management’s newest Purchasing
Managers Index for the factory sector, a gauge of U.S. manufacturing activity.
Source:
Econoday, October 25, 2019
The Econoday economic calendar lists 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
Monday: AT&T (T), Alphabet
(GOOG), HSBC (HSBC)
Tuesday: Amgen (AMGN), BP (BP),
Mastercard (MA), Merck (MRK), Pfizer (PFE)
Wednesday: Apple (AAPL), Facebook
(FB), GlaxoSmithKline (GSK), Starbucks (SBUX)
Thursday: Altria (MO), Bristol-Myers
Squibb (BMY), Sanofi (SNY)
Friday: AbbVie (ABBV), Alibaba
(BABA), Berkshire Hathaway (BRK.B), Chevron (CVX), ExxonMobil (XOM)
Source:
Zacks.com, October 25, 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
“Lack of money is no
obstacle. Lack of an idea is an obstacle.”
KEN HAKUTA
T H E W E E K L Y
R I D D L E
Round like an apple and deeper
than a cup, yet all the king’s horses can’t pull it up. What is it?
LAST WEEK’S
RIDDLE: It falls from great heights, but it never stays, and sometimes people
wish it would go away. What is it?
ANSWER: Rain.
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
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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2 - wsj.com/market-data [10/25/19]
3 - quotes.wsj.com/index/XX/990300/historical-prices [10/25/19]
4 - reuters.com/article/us-usa-trade-china/u-s-china-close-to-finalizing-parts-of-phase-1-trade-pact-ustr-idUSKBN1X40EF
[10/25/19]
5 - investing.com/economic-calendar/michigan-consumer-sentiment-320
[10/25/19]
CHART CITATIONS:
quotes.wsj.com/index/XX/990300/historical-prices
[10/25/19]
quotes.wsj.com/index/SPX/historical-prices
[10/25/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield
[10/25/19]
