December 13, 2019 Weekly Capital Market Update. For the week, the Nasdaq +0.91% led the market gains followed by S&P 500 Index +0.73% and the Dow Jones Industrial Average +0.43% on reports of Phase One trade agreement between U.S. and China. The deal cancels the 25% tariff on $160 billion of Chinese good scheduled for Sunday while, in turn, China agreed to purchase an extra $200 billion in U.S. agricultural, energy and manufactured products (along with efforts to halt counterfeiting, patent and trademark violations). The Democrat-controlled Congressional House of Representatives finally announced their approval of amendments to the USMCA pact which is a critical trade agreement with U.S.’s two largest trading partners, Mexico and Canada. Also, on the week the U.K.’s conservative party prevailed in majority of Parliament, paving the way for likely Brexit by Boris Johnson (PM).
December 7, 2019 Weekly Capital Market Update. Even after the blockbuster jobs report on Friday and subsequent market rally, the days positive ground was not able to overcome the week’s earlier losses stemming from news China- U.S. trade pace of progress has stalled. President Trump’s scheduled December 15th deadline for tariffs on Chinese goods. For the week, the S&P 500 lost -1.26%, the Dow Jones Average dropped -1.72% and the Nasdaq dropped -1.59%. Friday’s jobs report showed an unexpected gain of a whopping 266,000 jobs for November moving unemployment to a new 50-year low of 3.5%.