While there is currently a 90-day pause on the implementation of some tariffs, the impact and timing of trade negotiations with multiple countries presents a risk that is causing some investors to be tentative in buying equities. Last week, the S&P 500 Index was -1.5%, the Dow Jones Industrials -2.7%, and the NASDAQ -2.3%. …
A 90-day pause in the U.S. tariff implementation plan provided equities a large relief rally last week. For the week, the S&P 500 Index was +5.7%, the Dow Jones Industrials +5.0%, and the NASDAQ +7.4%. The S&P 500 Index was led by the Technology, Industrial, and Communication Services sectors, while the Energy, Real Estate …
Fear trumped greed to lead equity markets lower last week, mainly from concern over the economic impact of pending tariffs. For the week, the S&P 500 Index was -1.5%, the Dow Jones Industrials -1.0%, and the NASDAQ -2.4%. The S&P 500 Index was led by the Consumer Staples, Energy, and Real Estate sectors, while …
The S&P 500 Index finished the week higher to break its four-week losing streak. For the week, the S&P 500 Index was +0.5%, the Dow Jones Industrials +1.2%, and the NASDAQ +0.3%. The S&P 500 Index was led by the Energy, Financial, and Health Care sectors, while the Materials, Utility, and Consumer Staples sectors …
The equity market saw a welcome relief rally on Friday but closed lower for the week. For the week, the S&P 500 Index was -2.2%, the Dow Jones Industrials -3.0%, and the NASDAQ -2.4%. The S&P 500 Index was led by the Energy, Utility, and Financial sectors, while the Consumer Staples, Consumer Discretionary, and …
Uncertainty caused by new policies such as lower government spending and tariffs to shape trade has weighed on the equity markets. For the week, the S&P 500 Index was -3.1%, the Dow Jones Industrials -2.3%, and the NASDAQ -3.2%. All sectors in the S&P 500 Index were lower for the week with the smallest …
Despite a strong showing on Friday, the S&P 500 Index closed lower for both the week and month. For the week, the S&P 500 Index was -1.0%, the Dow Jones Industrials +1.0%, and the NASDAQ -3.4%. The S&P 500 Index was led by the Financial, Real Estate, and Health Care sectors, while the Technology, …
The S&P 500 Index experienced both a new all-time high and its worst down day of the year last week. For the week, the S&P 500 Index was -1.6%, the Dow Jones Industrials -2.5%, and the NASDAQ -2.2%. The S&P 500 Index was led by the Utility, Health Care, and Energy sectors, while the …
Equity markets rebounded last week as investors continue to absorb new information on the economy, government spending, and proposed tariffs at rapid speed. For the week, the S&P 500 Index was +1.5%, the Dow Jones Industrials +0.6%, and the NASDAQ +2.5%. The S&P 500 Index was led by the Technology, Communication Services, and Consumer …
Mexico and Canada made border security concessions to avoid tariffs going into effect, but more tariff proposals may be looming for other countries. For the week, the S&P 500 Index was -0.2%, the Dow Jones Industrials -0.5%, and the NASDAQ +0.1%. The S&P 500 Index was led by the Consumer Staples, Real Estate, and …
Barring any significant disruption happening over the next two days, the equity market will be closing 2019 at, or near, record highs. Many of the worries from a year ago, such as global trade and a hawkish Federal Reserve, have dissipated. Consumer spending has been a key component of economic growth for the year. …
The stock market continues to grind higher driven by favorable progress on trade between both U.S.-China and U.S.-Mexico-Canada (USMCA). China appears to be accommodative to reducing tariffs and the U.S. is reciprocating. The key issues of intellectual property protections and further opening of China’s financial sector should take longer to work out. Trade should …
The stock market finished the week higher and hit all-time highs after a US-China trade deal was agreed upon. The agreement, known as a phase-one deal, averted new tariffs on $160 Billion of consumer goods set to start on December 15th. The agreement also reduced some current tariffs, with China agreeing to increase purchases …
The stock market struggled most of the week but staged a comeback rally on Friday on the better than expected employment report for November. The Labor Department reported nonfarm payrolls increased by 266,000 in November, well above expectations of 180,000. The unemployment rate also declined from 3.6% to 3.5%. This marks the 21st consecutive …
The advance report on First Quarter U.S. Gross Domestic Product (“GDP”) was reported at +3.2%. This was an upside surprise to the 2% widely anticipated by most economists. Part of the surprise was in net trade (exports versus imports) which was refreshing to see given the concern over the U.S.—China trade standoff. Personal consumption …
Earnings reports have been a positive surprise so far. For the S&P 500, 77 out of 500 companies have reported with 78% beating expectations, 5% matching and 17% below expectations. The 48 company earnings reports from the past week have raised the combined (reported and estimated) earnings growth for the quarter from -2.3% to …
The S&P 500 Index had a muted week but then generated some excitement on Friday with earnings from banks such as JP Morgan and Wells Fargo, an energy sector merger announcement with Chevron and Anadarko Petroleum, and Disney’s announcement of its direct-to-consumer media service. The S&P 500 Index closed the week +0.5% higher. The …
The S&P 500 Index added to an impressive first quarter return by posting a 2.1% return in the first week of 2019’s second quarter. Economic and trade optimism buoyed equity markets. Later this week, the first quarter earnings season kicks off with major banks J.P. Morgan Chase, Wells Fargo, and PNC announcing their quarterly …
The S&P 500 closed out its best first quarter since 2009. The quarter came in like a lion and went out like a lamb. The giant January rebound (+8.0%) stepped down to more normal returns in February (+3.2%) and March (+1.9%). The quarterly gain almost erased the steep decline from the fourth quarter of …
The S&P 500 Index advanced 0.4% last week, its fifth consecutive weekly increase. Crude oil fell 2.5% for the week. As we near the end of the quarterly earnings season, much of the fundamental news from reporting companies is out and speculation on how current macro and industry data may impact earnings for first quarter …
Continue reading “Wrapping up Earnings and Focusing on Economic Data”
US-China trade expiration is getting an extension until after Trump and Xi meet later in March. Chinese vice premier Liu He has been in Washington for negotiations all week and into the weekend. Both sides seem eager to do something constructive, but it looks like nothing will be finalized until later in March. This stops …
Continue reading “Extending the U.S. – China Trade Deadline”
A deal was struck to avoid a resumption of the partial U.S. government shutdown last week. Macroeconomic Crisis One averted, even though there may be political ramifications of the President’s decision to push ahead with funding the wall for the U.S. southern border through emergency measures. We’re much more concerned about economics, business, and investing, …
A Dissipating “Axis of Worry” Many of the concerns that caused the steep drop in the stock market in the fourth quarter of 2018 have started to dissipate. The combination of rising interest rates, a trade dispute between the U.S. and China, lower oil prices, and the U.S. government shutdown all rolled into what we …
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