Market Perspective for September 6, 2019

Positive economic data in the U.S. boosted global markets. The S&P 500 Index climbed 1.88 percent this week, the Nasdaq 1.66 percent, the Dow Jones Industrial Average 1.65 percent and the Russell 2000 Index 0.59 percent.

iShares Barclays 20+ Year Treasury (TLT) fell more than 3 percent from its midweek high to low and finished the week down 0.82 percent. SPDR Gold Shares (GLD) slid more than 3 percent from high to low and ended the week down 1.53 percent.

SPDR Energy (XLE) bounced 2.76 percent as oil prices rebounded. SPDR Technology (XLK) rallied 2.45 percent, SPDR Financial (XLF) 2.33 percent and SPDR Industrial (XLI) 2.32 percent.

The Markit manufacturing PMI slowed to 50.3 in August. The Services PMI was stronger at 50.7.

Motor vehicle sales climbed to an annualized pace of 17.1 million in August, up from July’s 16.9 million and economist forecasts of 16.6 million. Factory orders climbed 1.4 percent in July.

Weekly jobless claims remained low at 217,000. Nonfarm payrolls increased 130,000 in August, below expectations of 170,000. Unemployment held steady at 3.7 percent and wage growth climbed 0.4 percent, faster than projected.

The 10-year Treasury hit a high of 1.60 percent midday Friday before closing at 1.55 percent. PowerShares Senior Loan (BKLN) and iShares iBoxx High Yield Corporate Bond (HYG) gained 0.33 percent and 0.32 percent, respectively.

The U.S. Dollar Index was flat on the week. iShares MSCI Emerging Markets (EEM) jumped 3.46 percent. iShares MSCI EAFE (EFA) rose 2.49 percent.

Aerovironment (AVAV), Cloudera (CLDR), Michael’s Companies (MIK) and Slack (WORK) beat estimates by 111 percent, 80 percent, 36 percent and 22 percent, respectively. Lululemon (LULU) exceeded estimates by 8 percent and shares rallied to a new all-time high.

 

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