THE WEEK ON WALL STREET
U.S. stock benchmarks opened a new quarter positively. The S&P 500, Dow Jones Industrial Average, the Nasdaq all gained in the opening week of July. Overseas, stocks in developed markets, tracked by MSCI’s EAFE index also rose. On July 3, the S&P posted its latest record close: 2,995.82. On July 5, stocks fell, slightly, after the Department of Labor released its June employment report.
JOBS REPORT BEATS EXPECTATIONS
Analysts polled by Bloomberg thought the economy would add 160,000 net new jobs in June. Instead, the number was 224,000. The headline unemployment rate ticked up 0.1% to 3.7%; the U-6 rate, including the underemployed, also rose 0.1% to 7.2%. Before the large June gain was announced, traders were confident that the Federal Reserve would adjust interest rates this summer. This latest hiring data called that confidence into question.
MORE TARIFFS SLATED FOR EUROPEAN GOODS
The federal government plans to levy new import taxes on $4 billion of food and beverages coming from the European Union, the Office of the U.S. Trade Representative said last week. This would complement the tariffs on $21 billion worth of E.U. imports announced in April. The U.S. and E.U. generate more than $1 trillion in commerce through trade relationships. European exports to the U.S., however, far outweigh U.S. exports to the E.U.
Monday, July 15 will mark the start of the next earnings season. Money-center banks report first, followed by companies from a variety of industries.
THE WEEK AHEAD: KEY ECONOMIC DATA
Tuesday: Federal Reserve Chairman Jerome Powell delivers opening remarks at a conference of the Federal Reserve Bank of Boston.
Wednesday: Fed Chair Powell testifies on monetary policy in Congress, and the Fed also releases the minutes from its June meeting. This could be market moving.
Thursday: The June Consumer Price Index appears, showing monthly and yearly changes in inflation.
These are the views of FMG Marketing Library, and not necessarily those of Nick Toadvine, or Calton Associates, Inc., and should not be construed as investment advice. Neither Nick Toadvine nor Calton & Associates, Inc. gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.