In this week’s recap: Stocks pushed higher, the mood changed
in the trade saga between U.S. and China, and quarterly earnings reports
arrived.
Weekly Economic Update
Presented by Troy L Thompson, CFP October
16, 2019
THE WEEK
ON WALL STREET
Stock
prices pushed higher last week, as investors remained hyper-focused on any new
developments with the U.S. trade negotiations with China.
The
Dow Jones Industrial Average picked up 0.91%, while the Standard & Poor’s
500 rose 0.62%. The Nasdaq Composite index gained 0.93% for the week. The MSCI
EAFE index, which tracks developed overseas stock markets, added 2.28%.1,2
Trade
Winds
For
nearly two years, investors’ moods have seemed to swing with each twist in the
ongoing trade saga between the U.S. and China. Last week was no different.
On
Tuesday, stock prices fell sharply on concerns that U.S.-China trade tensions
had escalated. The White House announced the addition of 28 new Chinese
companies to its list of firms that are banned from doing business in the U.S.
Later in the day, White House officials confirmed that they had implemented
travel bans on selected Chinese officials.3,4
But
prices bounced back Thursday and surged higher Friday on White House reports
that suggested the trade talks between the two countries were “going really
well.” Near the close Friday, the White House confirmed the U.S. has come to a
“very substantial phase one deal” with China.5,6
Quarterly
Earnings
Investors
may start to get a better glimpse into third-quarter earnings this week, as
more than 150 companies are expected to report on their operations.7
As
“earnings season” gets underway, some attention may shift from the U.S.-China
trade negotiations and toward company reports.
What’s
Next
Some
U.S. financial markets will be open, and some will be closed, on Monday,
October 14, in observance of the federal holiday Columbus Day. The U.S. bonds
markets and most banks will be closed. But the New York Stock Exchange and the
NASDAQ will be open for regular hours.
T I P O F
T H E W E E K
A mental trick you can use to encourage consistent retirement saving – think of your monthly retirement contribution like a bill you need to pay.
THE WEEK
AHEAD: KEY ECONOMIC DATA
Thursday: Housing Starts for
September are released. A “start” is defined as the beginning of excavation of
the foundation for the building. Philadelphia Fed Business Outlook Survey. The
survey can provide insights into the manufacturing sector.
Source:
Econoday, October 11, 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
Tuesday: Netflix (NFLX), Johnson
& Johnson (JNJ), The Goldman Sachs Group (GS)
Wednesday: Abbott Laboratories
(ABT), United Rentals (URI), Winnebago Industries (WGO)
Thursday: Morgan Stanley (MS),
PayPal Holdings (PYPL), Intuitive Surgical (ISRG)
Friday: Coca-Cola (KO),
Schlumberger Limited (SLB), American Express (AXP)
Source:
Zacks, October 11, 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
“Employ thy time well, if
thou meanest to get leisure.”
BENJAMIN
FRANKLIN
T H E W E E K L Y
R I D D L E
In terms of date and time,
what was so significant about 3,661 seconds past midnight on January 1, 2001?
LAST WEEK’S
RIDDLE: Tamara donated $1 million to a charity. After she donated all that
money, she was a millionaire. Can you explain this?
ANSWER: She was
worth at least $2 million when she made the donation.
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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Please feel free to send us their contact information via phone or email. (Don’t worry – we’ll request their permission before adding them to our mailing list.)
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
not necessarily represent the views of the presenting party, nor their
affiliates. The information herein has been derived from sources believed to be
accurate. Please note - investing involves risk, and past performance is no
guarantee of future results. Investments will fluctuate and when redeemed may
be worth more or less than when originally invested. This information should
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for the purpose of avoiding any Federal tax penalty. This is neither a
solicitation nor recommendation to purchase or sell any investment or insurance
product or service, and should not be relied upon as such. All market indices
discussed are unmanaged and are not illustrative of any particular investment.
Indices do not incur management fees, costs and expenses, and cannot be
invested into directly. All economic and performance data is historical and not
indicative of future results. The Dow Jones Industrial Average is a
price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ
Composite Index is a market-weighted index of all over-the-counter common
stocks traded on the National Association of Securities Dealers Automated
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weighted index composed of the common stocks of 500 leading companies in
leading industries of the U.S. economy. NYSE Group, Inc. (NYSE:NYX) operates
two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE
Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific
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Additional risks are associated with international investing, such as currency
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CITATIONS:
1 – wsj.com/market-data [10/11/19]
2 – quotes.wsj.com/index/XX/990300/historical-prices [10/11/19]
3 – tinyurl.com/y29u6m2u [10/8/19]
4 – tinyurl.com/yyj9bh66 [10/8/19]
5 – cnbc.com/2019/10/10/trump-says-china-trade-talks-are-going-very-well.html?&qsearchterm=really%20well%20trump [10/10/19]
6 – cnbc.com/2019/10/11/trump-says-us-has-come-to-a-substantial-phase-one-deal-with-china.html [10/11/19]
7 – zacks.com/earnings/earnings-calendar [10/11/19]
2 – quotes.wsj.com/index/XX/990300/historical-prices [10/11/19]
3 – tinyurl.com/y29u6m2u [10/8/19]
4 – tinyurl.com/yyj9bh66 [10/8/19]
5 – cnbc.com/2019/10/10/trump-says-china-trade-talks-are-going-very-well.html?&qsearchterm=really%20well%20trump [10/10/19]
6 – cnbc.com/2019/10/11/trump-says-us-has-come-to-a-substantial-phase-one-deal-with-china.html [10/11/19]
7 – zacks.com/earnings/earnings-calendar [10/11/19]
CHART CITATIONS:
quotes.wsj.com/index/XX/990300/historical-prices
[10/11/19]
quotes.wsj.com/index/SPX/historical-prices
[10/11/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldYear&year=2019
[10/11/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldAll
[10/11/19]
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