The Week on Wall Street
Fears of an impasse in the U.S.-China trade dispute lessened last week. While additional U.S. tariffs on Chinese imports were scheduled to take effect on September 1st, China's government communicated that it would refrain from taking retaliatory measures for the moment.
U.S. stock benchmarks advanced during the week. The S&P 500 rose 2.79% across 5 trading days, and the Nasdaq Composite and Dow Jones Industrial Average gained 2.72% and 3.02%, respectively. The MSCI EAFE international index added just 0.25%.
Positive News in the Trade Dispute
Thursday, a spokesman for China's commerce ministry said that negotiations could resume this month, and that discussions need to focus on "removing the new tariffs to prevent escalation."
In addition, officials in Beijing indicated they would hold off on responding to the U.S. tariff hikes announced Friday by the White House.
Mixed Consumer Confidence Signals
The Conference Board's monthly consumer confidence index was at 135.1 in August. Analysts polled by Reuters had projected a reading of 129.5. Consumers' view of the present economic situation was the best since November 2000.
On the other hand, the University of Michigan's monthly consumer sentiment index (based on a different collection of survey data) dropped 8.6 points during August to 89.8; that was its biggest monthly descent in nearly 7 years.
After a pause for the Labor Day holiday, U.S. financial markets have an abbreviated trading week. The August jobs report may influence Friday's Wall Street session, and any news pertaining to U.S.-China trade talks could also influence the markets.
THE WEEK AHEAD: KEY ECONOMIC DATA
Tuesday: The Institute for Supply Management releases its August purchasing managers index (PMI) for the factory sector, assessing U.S. manufacturing activity.
Thursday: ISM presents its August PMI for the service sector, and payroll giant ADP publishes its latest private-sector employment snapshot.
Friday: The Department of Labor offers its August employment report.
Source: Econoday / MarketWatch Calendar, August 30, 2019
The Econoday and MarketWatch economic calendars list 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
Wednesday: Palo Alto Networks (PANW), Slack Technologies (WORK)
Thursday: Lululemon Athletica (LULU)
Source: Zacks, August 30, 2019
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The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.
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The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Consumer Confidence Index is based on a survey of 5,000 households that attempts to measure the respondent's confidence of current economic conditions and uses 1985 as the starting benchmark.
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