The Investor Guide to Fidelity Funds for September 2018 is AVAILABLE NOW! Links to the September Data Files have been posted below. Market Perspective: Changes Coming to Sector Classifications August […]
U.S. stocks moved higher on Monday with strength in industrials and consumer staples. The transportation subsector powered industrials. The Dow Transportation Index rose 1.82 percent ahead of Hurricane Florence, expected to make U.S. mainland landfall on Thursday morning.
The NOAA upgraded Florence to a category four hurricane on Monday. This storm is slow moving and gaining strength. Building supplies companies rose and Home Depot (HD) rallied more than 2 percent. Insurers slipped. Crude oil fell slightly, and natural gas gained 1 percent on Monday. Wal-Mart (WMT) also gained on the day.
The Jobs Openings and Labor Turnover Survey (JOLTS) for July will be out on Tuesday. There were 6.7 million job openings in June, more than the number of officially unemployed Americans. Wholesale inventories for July, which could affect third-quarter GDP estimates, will also be reported.
August inflation data will be out on Wednesday and Thursday. The Bureau of Labor Statistics’ PPI and CPI are forecast to rise 0.2 and 0.3 percent. Economists expect core CPI will have risen 0.2 percent.
Friday will bring retail sales and industrial production for August and the early consumer sentiment reading for September.
The Atlanta Federal Reserve will update its third-quarter GDP growth forecast tomorrow. It currently predicts 4.4 percent growth. The economist consensus is 3.1 percent.
China’s inflation data came in slightly better than expected on Monday. Chinese fixed-asset investment and industrial production is due later this week. New tariffs on Chinese imports could come as early as this week.
The European Central Bank will meet on Thursday and is expected to keep rates steady.
The U.S. Dollar Index moved lower after the British pound rallied on talk of a Brexit deal. Emerging market currencies were steady, but shares moved lower. Alibaba (BABA), top 10 holding in many emerging market funds, fell more than 3 percent after CEO and Founder Jack Ma announced plans to step down. iShares MSCI Emerging Markets (EEM) declined 0.99 percent. The weaker dollar drove iShares MSCI EAFE (EFA) 0.61 percent higher.
Earnings season has all but wrapped up. Supermarket chain Kroger (KR) will report this week, with earnings expected to fall 1 cent from a year ago to 38 cents per share.
Click Here to view today’s Global Momentum Guide WEEKLY SECTOR MOVERS The Dow Jones Industrial Average declined 0.19 percent last week, the S&P 500 Index 1.03 percent, the Russell […]
The week ended with a strong jobs report. Employers added 201,000 new jobs in August and average hourly earnings doubled forecasts with a 0.4-percent increase. Rising wages pushed the 10-year Treasury yield up to 2.94 percent, its highest level in nearly a month. The odds of a December rate hike jumped from 71 to 80 percent on the news.
Earlier in the week, the ISM manufacturing index climbed to 61.3 percent, crushing forecasts of 57.9 percent. It was the highest reading since 2004. The ISM services index was strong too, rising to 58.5 percent from 55.7 percent in July. Both indexes signal expansion when above 50 percent. Motor vehicle sales eased to an annualized pace of 16.7 million, down 0.1 million from July.
The trade deficit widened to a higher-than-expected $50.1 billion in August, signaling a stronger economy.
The Dow Jones Industrial Average fell 0.27 percent this week, best among the major indexes. Weakness was concentrated in technology and pulled the Nasdaq down 2.30 percent. SPDR Consumer Staples (XLP) rallied 1.06 percent and SPDR Utilities (XLU) 0.74 percent. SPDR Industrials (XLI) gained 0.70 percent on the week. The Dow Transportation Index gained 0.33 percent.
SPDR Communications Services (XLC) fell 4.01 percent and SPDR Technology (XLK) declined 2.59 percent.
The U.S. Dollar Index climbed 0.8 percent on the week on strong economic data and weakness abroad. SPDR S&P 500 (SPY) fell 0.93 percent versus losses of 3.61 and 3.26 percent for iShares MSCI EAFE (EFA) and iShares MSCI Emerging Markets (EEM).
EEM just missed closing at a new 52-week low on Friday following political violence in Brazil. The leading presidential candidate was stabbed late Thursday but remains stable following surgery. His economic policies have bolstered Brazilian stocks and currency.
Crude oil declined about 3 percent on the week and copper 3.5 percent. Agricultural commodities climbed 1.5 percent.
President Trump has threatened additional tariffs on $200 billion of Chinese goods and tariffs on an additional $267 billion of Chinese imports could follow. iShares China Large Cap (FXI) moved in sympathy with emerging markets and lost 3.29 percent on the week.
Earnings news was light this week. Broadcom (AVGO) beat estimates and shares rallied 7.7 percent on Friday. Drone maker AeroVironment (AVAV) gained 16.7 percent for the week following its strong report.
Click Here to view today’s Global Momentum Guide WEEKLY SECTOR MOVERS The Nasdaq increased 2.06 percent last week, the S&P 500 Index 0.93 percent, the Russell 2000 Index 0.87 […]
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