The equity markets had a slow leak over the short, four-day trading week last week. The S&P 500 Index closed the week –1.7%, the NASDAQ –1.4% and the Dow –2.1%. The U.S. 10-year Treasury bond yield increased to 1.343% at Friday’s close versus 1.326% the previous week. With second quarter earnings reporting complete, the …
A well below forecast employment report may allow the Federal Reserve to be judicious when it decides to start tapering monthly bond purchases. The August employment report showed an increase of only 235,000 net new jobs versus expectations of 725,000 to 750,000 jobs. The S&P 500 Index closed the week +0.6%, the NASDAQ +1.4% …
The greatly anticipated speech from Fed Chair Jerome Powell at the Jackson Hole Economic Symposium on Friday appeared to have a calming and positive impact on markets. He reiterated the comments of several Fed officials who said that economic conditions have improved, and the Fed can begin tapering its monthly bond purchases some time …
A geopolitical crisis in Afghanistan and hints from the Federal Reserve that it could soon begin tapering monthly bond purchases combined to lead the equity markets to a negative week. The S&P 500 Index closed the week –0.5%, the NASDAQ –0.3% and the Dow –1.0%. The U.S. 10-year Treasury bond yield decreased to 1.260% …
While inflation sparked by the rapid economic rebound is still elevated, the recent Consumer Price Index (CPI) and Producer Price Index (PPI) reports may suggest the surge is losing some steam. We are not out of the woods yet, but the concern of runaway inflation may be overdone. The S&P 500 Index closed the …
Optimism on U.S.—China trade helped markets extend gains for the third straight week. Stocks are at record levels as the third quarter earnings season slows into its final weeks. Of the 446 companies in the S&P 500 that have reported 3Q earnings, 74% have exceeded expectations, 7% have met expectations and 19% have reported …
The S&P 500 Index snapped a three-week decline on optimism the U.S. and China were making progress on the trade dispute. In an announcement on Friday, the U.S. agreed not to enact the scheduled October 15th tariff increases on $250 billion of goods in exchange for China agreeing to purchase more U.S. agricultural products. …
The S&P 500 Index posted its third consecutive weekly decline. The decline wound up being smaller than the start of the week would have indicated, as the market rallied strongly on Thursday and Friday. The week started down when the September ISM Manufacturing Report showed contraction in the manufacturing sector. The Index level of …
Last week produced a mix of economic reports that presented a modestly softer economy, but one that is not imminent danger of recession. Some of the softness, such as the contraction in the ISM Manufacturing Index and the weaker Employment Report, can be attributed to the continuing trade issues with China. Once the announcement …
The Federal Reserve’s Federal Open Market Committee (“FOMC”) held short-term interest rates steady this week. As mentioned in last week’s Commentary, the Fed’s mandate is to promote maximum employment, stable prices, and moderate long-term interest rates. The Fed’s current inflation target is 2% and inflation is currently below that level. This past Friday’s Employment …
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