In this week’s recap: stocks move lower as traders again
absorb conflicting messages about trade talks; the Federal Reserve shares its
October meeting minutes; good news comes from the housing market.
Weekly Economic Update
Presented by Troy L Thompson, CFP November
27th, 2019
THE WEEK
ON WALL STREET
Stocks
declined last week as mixed signals emerged about the progress of U.S.-China
trade negotiations.
The
three major Wall Street benchmarks all took weekly losses. The Dow Jones
Industrial Average declined 0.46%; the S&P 500, 0.33%; the Nasdaq Composite,
0.25%. Also pulling back, the MSCI EAFE index, tracking developed stock markets
outside the U.S. and Canada, retreated 0.69%.1,2
Nothing
Conclusive Regarding Trade
As
the market week ended, there was still haziness surrounding the state of
U.S.-China trade discussions. Were negotiators on the cusp of a phase-one deal
or further away?
Friday,
President Trump told reporters that a deal was “very close,” but Chinese
President Xi Jinping said that his country could decide to “fight back” against
certain terms. Last week, a bill intended to support Hong Kong protesters
advanced through Congress, and that development was not taken well in Beijing.3,4
The Fed
Assesses the Economy
Federal
Reserve officials gathered for their October meeting “generally saw the
economic outlook as positive,” according to minutes from the central bank’s
October monetary policy meeting released Wednesday. Some of them termed the
economy “resilient.”
The
minutes also noted that the Fed would wait to assess the impact of its recent
interest rate cuts and that any upcoming policy decisions might be data dependent.5
Strength
in the Housing Sector
Existing
home sales improved 1.9% last month, by the estimation of the National
Association of Realtors. Year-over-year, sales were up 4.6% through October,
and the median sale price was $270,900, 6.2% above where it was 12 months
earlier.
Wednesday,
the Census Bureau said that single-family home construction increased for a
fifth straight month in October. In addition, the pace of building permits for
new homes hit a level unseen since 2007.6,7
What’s
Ahead
This
will be an abbreviated trading week on Wall Street. U.S. stock and bond markets
are closed on Thanksgiving Day (Thursday) and then reopen for a half-day
session on Friday.
T I P O F
T H E W E E K
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THE WEEK
AHEAD: KEY ECONOMIC DATA
Tuesday: The Census Bureau issues
its latest new home sales snapshot, and the Conference Board releases its
November Consumer Confidence Index.
Wednesday: October consumer spending
numbers appear from the Department of Commerce, and the Bureau of Economic
Analysis publishes a new estimate of third-quarter economic expansion.
Source:
Econoday, November 22, 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: Agilent (A),
Hewlett-Packard (HPE), Palo Alto Networks (PANW)
Tuesday: Analog Devices (ADI),
Dell Technologies (DELL), Vmware (VMW)
Wednesday: Deere & Co. (DE)
Source:
Zacks.com, November 22, 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
“The bravest thing you
can do when you are not brave is to profess courage and act
accordingly.”
CORA HARRIS
T H E W E E K L Y
R I D D L E
Two children are born in the
same hospital, on the same year, on the same day, and have
the same father and mother… but they are not twins. How is this
possible?
LAST WEEK’S
RIDDLE: I give light by night, but not by day. Wicked I am, but not evil in any
way. I mostly wax, but always wane. Except when I'm out, I stay the same. What
am I?
ANSWER: A
candle.
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
[11/22/19]
2 - quotes.wsj.com/index/XX/990300/historical-prices [11/22/19]
3 - cnbc.com/2019/11/22/dow-futures-amid-us-china-trade-uncertainty.html
[11/22/19]
4 - cnbc.com/2019/11/22/hong-kong-rights-bill-unlikely-to-derail-us-china-trade-talks.html
[11/22/19]
5 - marketwatch.com/story/fed-minutes-show-worries-about-economy-had-eased-a-bit-2019-11-20
[11/20/19]
6 - inman.com/2019/11/21/existing-home-sales-pick-up-in-october-after-slump-nar/
[11/21/19]
7 - marketwatch.com/story/permits-for-new-home-construction-hits-post-recession-record-high-in-october-2019-11-19
[11/19/19]
CHART CITATIONS:
quotes.wsj.com/index/XX/990300/historical-prices
[11/22/19]
quotes.wsj.com/index/SPX/historical-prices
[11/22/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield
[11/22/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldAll
[11/22/19]