-September 13, 2019 Weekly Capital Market Update. The S&P 500 Index rose +0.96%, the Dow Jones Industrial Average gained +1.57%, and the Nasdaq finished up +0.91% on the third positive week. U.S.-China trade tariff tension de-escalated as China eased tariffs on several products (lubricating oils, alfalfa, etc.) and said it will exempt soybean and pork, which in turn prompted President Trump to then delay tariff increases scheduled to take effect on October 1st. Another upcoming silver lining is next week’s Federal Reserve meeting, where it is widely expected Chairman Powell will announce another 0.25% interest rate cut. There also appears to be a capital flow from growth stocks to value stocks, indicating better balance in weighted holdings (momentum stock have been overplayed). The NFIB report highlighted “Next week, the Federal Reserve is widely expected to announce another interest rate cut.”
-September 6, 2019 Weekly Capital Market Update. Leading the major indices for the week, the S&P 500 Index gained +1.79%, followed by Nasdaq +1.76% and the Dow Jones Industrial Average finishing up +1.49%. For the second week, the U.S. equity markets were largely supported by elevated China-U.S. trade deal expectations, followed by employment numbers and accommodative remarks by Fed Chair Powell. The ISM Non-Manufacturing Index bounced up with higher-than-expected expansion of the service economy while ADP reported 190,000 new jobs compared to estimates of 150,000. Fed Chair Powell expressed remarks that indicated further easing (rate cut) in late September: “Our main expectation is not at all that there will be a recession,’’ Powell said. “There are these risks, and we’re monitoring them very carefully and we’re conducting policy in a way that will address them.’’
-September 6, 2019 Weekly Capital Market Update. Leading the major indices for the week, the S&P 500 Index gained +1.79%, followed by Nasdaq +1.76% and the Dow Jones Industrial Average finishing up +1.49%. For the second week, the U.S. equity markets were largely supported by elevated China-U.S. trade deal expectations, followed by employment numbers and accommodative remarks by Fed Chair Powell. The ISM Non-Manufacturing Index bounced up with higher-than-expected expansion of the service economy while ADP reported 190,000 new jobs compared to estimates of 150,000. Fed Chair Powell expressed remarks that indicated further easing (rate cut) in late September: “Our main expectation is not at all that there will be a recession,’’ Powell said. “There are these risks, and we’re monitoring them very carefully and we’re conducting policy in a way that will address them.’’
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