Weekly Economic Update – April 8, 2019

In this week’s recap: stocks rise with help from a reassuring March employment report as well as news of further progress in U.S.-China trade talks.

Weekly Economic Update

Presented by William Mauro April 8, 2019

 

THE WEEK ON WALL STREET

Stocks posted their second straight weekly gain. The Dow Jones Industrial Average gained 1.17% in five trading days; the S&P 500, 1.27%; the Nasdaq Composite, 1.72%. The MSCI EAFE index of international stocks rose 1.84%.^1-4

Investors got some good news last week: an encouraging employment report and indications that a new U.S.-China trade deal might be near.

 

A Solid Hiring Report

The economy generated 196,000 net new jobs in March, according to the Department of Labor. Monthly job growth averaged 180,000 in the first quarter.

The March hiring recovery eased Wall Street concerns about a near-term economic downturn. If payroll growth is this strong in April and May, the Federal Reserve may be motivated to rethink its pause of interest rate hikes.⁵

 

Another Step in the Trade Talks

Chinese Vice Premier Liu He said last week that the U.S. and China have come to a consensus on the basics of a new trade accord. President Trump commented Thursday that “the next four weeks†of negotiations will be critical.⁶

 

What’s Next

The first-quarter earnings season kicks off this week with three of the biggest banks in the country reporting results. The question is whether stocks in the S&P 500 will post earnings that beat analyst expectations to the degree that they have in the past few quarters.

 

T I P   O F   T H E   W E E K

A new business owner should have some cash available for professional services, such as legal or accounting help. Those services will probably be necessary before the business receives any funding.

 

 

THE WEEK AHEAD: KEY ECONOMIC DATA

Wednesday: Minutes from the March Federal Reserve meeting, plus the latest Consumer Price Index, tracking monthly and yearly inflation.

Friday: The initial University of Michigan consumer sentiment index for April, which assesses consumer confidence.

Source: Econoday / MarketWatch Calendar, April 5, 2019

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 release of data may be delayed without notice for a variety of reasons.

 

THE WEEK AHEAD: COMPANIES REPORTING EARNINGS

Wednesday: Bed Bath & Beyond (BBBY), Delta Air Lines (DAL)

Thursday: Fastenal (FAST), Rite Aid (RAD)

Friday: JPMorgan Chase (JPM), PNC (PNC), Wells Fargo (WFC)

Source: Morningstar.com, April 5, 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

“If you want the rainbow, you gotta put up with the rain.â€

DOLLY PARTON

 

 

T H E   W E E K L Y   R I D D L E

What is the timepiece with the most moving parts? (It has been around for centuries.)

 

LAST WEEK’S RIDDLE: What is the only planet within our solar system that rotates clockwise?

ANSWER: Venus.

 

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 not be construed as investment, tax or legal advice and may not be relied on 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 Quotation System. The Standard & Poor’s 500 (S&P 500) is a market-cap 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 “NYSEâ€) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

CITATIONS:

1 – quotes.wsj.com/index/SPX [4/5/19] 

2 – quotes.wsj.com/index/DJIA [4/5/19]         

3 – quotes.wsj.com/index/COMP [4/5/19]        

4 – quotes.wsj.com/index/XX/990300/historical-prices [4/5/19]

5 – cnn.com/2019/04/05/economy/march-jobs-report/index.html [4/5/19]

6 – cnbc.com/2019/04/05/stock-market-us-china-trade-nonfarm-payrolls-in-focus.html [4/5/19]

CHART CITATIONS:

markets.wsj.com [4/5/19]

 

treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldYear&year=2019 [4/5/19]

 

treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldAll [4/5/19]