In this week’s recap: stocks ride out a choppy week, as
traders react to a potential delay for a phase-one U.S.-China trade deal and a
surprising jobs report.
Weekly Economic Update
Presented by Thompson Financial, CFP December
11, 2019
THE WEEK
ON WALL STREET
Key
Wall Street benchmarks were up and down last week – or rather down and then up.
A Tuesday retreat was offset by a Friday rally spurred by the Department of
Labor’s November jobs report.
While
the S&P 500 managed to rise 0.16% for the week, the Dow Jones Industrial
Average declined 0.13%, and the Nasdaq Composite ceded 0.10%. MSCI’s EAFE
benchmark for international stocks retreated 0.25%.1,2
Hiring
Surpasses Expectations
Employers
added 266,000 net new jobs last month, 79,000 more than economists surveyed by
Dow Jones had projected. The main jobless rate ticked down 0.1% to 3.5%. The
U-6 rate, counting both the unemployed and underemployed, also declined 0.1% to
6.9%. Wages grew 3.1% year-over-year, above the 3.0% Dow Jones estimate.
These
numbers do not indicate an economy cooling off. While they were influenced by
the return of striking General Motors workers to their jobs, November hiring
gains were spread across several categories.3
Markets
Might Wait Well Into 2020 for a China Trade Deal
The
U.S.-China trade dispute has gone on for 21 months. Wall Street would like to
see a new phase-one trade agreement signed this month, but the timeline could
lengthen. On Tuesday, President Trump said that he was considering the option
of waiting until after the 2020 election to sign off on such a pact.
On
December 15, the U.S. is slated to impose a new set of tariffs on around $160
billion of Chinese products. Tech companies are eyeing this date with concern.4
FINAL THOUGHT
Holiday
shopping is critical to the economy, accounting for about 20% of annual retail
sales. This year’s calendar, however, does not favor retailers. The 2019
holiday shopping season is six days shorter than last year’s, as Thanksgiving
fell on November 28. So, expect traders to keep close tabs on the pace of
holiday spending, even with consumer confidence indices and stock benchmarks at
high levels.5
T I P O F
T H E W E E K
Searching for a cheap airfare? Instead of just relying on results from a search engine, go a step further and check the websites of discount air carriers. Sometimes, their fares do not show up on the popular flight search sites.
THE WEEK
AHEAD: KEY ECONOMIC DATA
Wednesday: The Federal Reserve makes
its latest monetary policy statement, followed by a press conference featuring
Fed Chairman Jerome Powell; also, the November Consumer Price Index appears.
Thursday: The Department of
Commerce releases its November retail sales report.
Source:
Econoday, December 6, 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: AutoZone (AZO)
Wednesday: Lululemon Athletica
(LULU)
Thursday: Adobe Systems (ADBE),
Broadcom (AVGO), Costco (COST)
Source:
Zacks.com, December 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
“All life is an experiment.
The more experiments you make, the better.”
RALPH WALDO
EMERSON
T H E W E E K L Y
R I D D L E
Suppose you have two
twins, three triplets, and four quadruplets. How many people do
you have?
LAST WEEK’S
RIDDLE: I follow and lead as you pass. Dress yourself in black, my darkness
lasts. I flee the light, but without the sun, your view of me would be gone.
Now tell me, what am I?
ANSWER: Your
shadow.
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.
This material was prepared by MarketingPro, Inc., and does
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Indices do not incur management fees, costs and expenses, and cannot be
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1 - wsj.com/market-data
[12/6/19]
2 - quotes.wsj.com/index/XX/MSCI%20GLOBAL/990300/historical-prices
[12/6/19]
3 - cnbc.com/2019/12/06/us-nonfarm-payrolls-november-2019.html
[12/6/19]
4 - washingtonpost.com/us-policy/2019/12/03/trump-says-trade-deal-with-china-could-wait-until-after-election/
[12/3/19]
5 - bit.ly/38ejx8o
[11/26/19]
quotes.wsj.com/index/XX/MSCI%20GLOBAL/990300/historical-prices
[12/6/19]
quotes.wsj.com/index/SPX/historical-prices
[12/6/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldYear&year=2019
[12/6/19]
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