Here are several highlights from last week’s market activity, as well as developing stories the investment team is following this week. As always, we remain committed to helping you navigate the ever-changing investment environment.
The following highlights should not be viewed as a recommendation, nor is this a notification of an impending change in asset allocation. For more information, please contact your advisor with any questions.
INVESTMENT TERM OF THE WEEK
Personal consumption expenditures (PCE), or the PCE Index, measures price changes in consumer goods and services. Expenditures included in the index are actual U.S. household expenditures. Data that pertains to services, durables and non-durables are measured by the index. Similar to the consumer price index (CPI), the PCE is part of the personal income report issued by the Bureau of Economic Analysis of the Department of Commerce.
IN THE MARKETS
U.S. equities touched new highs not seen since January, all in a week that included new tariffs, the chatter regarding the possible impeachment of the President and the Fed set to raise rates every three months.
The DJIA finished the week at 25790.35, up +0.47% on the week. The S&P 500 closed at 2874.69, up +0.86% on the week. The NASDAQ finished up +1.66% on the week. U.S. 10-year Treasury ended the week yielding 2.83%. In the energy markets, crude oil settled at $68.72. Year-to-date the S&P 500 is up +7.52%.
Positive US economic data and earnings sent the S&P 500 higher.
Investors shrugged off early-week losses following tense US-China trade talks, which in turn prompted a second wave of US tariffs (25%) on Chinese goods worth $16 Billion. China immediately retaliated in kind.
The bull market became the longest in history – 3,453 days, if you start counting from the S&P 500 low on 3/9/2009.
At the August Federal Open Market Committee meeting, the Fed signaled readiness to hike in September should the US economy stay on track. Chairman Powell defended Fed policy in the face of the President’s criticism.
In economic news: consumer confidence, personal income, consumption, PMI and sentiment data will be released. The Fed’s preferred measure of inflation, the PCE deflator, is expected to rise 2.3% year over year.
Several companies, including Bank of Montreal, DSW, Dollar Tree, and Lululemon will report earnings.
Washington Recap: Guilty – the plea of Trump fixer, Michael Cohen and conviction of former Trump campaign chairman, Manafort, reinvigorated impeachment chatter in the Beltway; several longtime Trump loyalists received immunity from prosecution, furthering impeachment talk; and trade talks continued.
John McCain, the maverick Senator and war hero, passed away at the age of 81.
Hawaii won the 2018 Little League World Series championship, as they defeated South Korea.
Focus will remain on continued trade talks. A U.S. Mexico deal looks promising based on early Monday news flow.
Are you ready for some football?!…college football gets underway. The #24 Oregon Ducks open their season this Saturday against Bowling Green. Oregon State will begin their season taking on #5 Ohio State.
THOUGHT OF THE WEEK
We hope everyone enjoys these last few days of summer leading into the Labor Day holiday. s a reminder, McGee Wealth Management will be closed Monday, September 3rd.
Please do not hesitate to call your advisor if you have any questions. Until we speak again, have a wonderfu week.
These highlights should not be viewed as a recommendation, nor is this a notification of an impending change in asset allocation. For more information, please contact your advisor with any questions. Opinions expressed in the attached article are those of Judith McGee and are not necessarily those of Raymond James. All opinions are as of this date and are subject to change without notice.
developments referred to in this material. This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of McGee Wealth Management and not necessarily those of Raymond James. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. . Investing involves risk and you may incur a profit or loss regardless of strategy selected. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. The Dow Jones Industrial Average (DJIA), commonly known as “The Dow” is an index representing 30 stock of companies maintained and reviewed by the editors of the Wall Street Journal. The NASDAQ composite is an unmanaged index of securities traded on the NASDAQ system. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor's results will vary. Past performance does not guarantee future results. This information is not intended as a solicitation or an offer to buy or sell any security referred to herein. Asset allocation and diversification do not ensure a profit or guarantee against loss. Investing in emerging markets can be riskier than investing in well-established foreign markets. Investing involves risk and investors may incur a profit or a loss. Sector investments are companies engaged in business related to a specific sector. They are subject to fierce competition and their products and services may be subject to rapid obsolescence. There are additional risks associated with investing in an individual sector, including limited diversification. Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any websites's users and/or members.
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