April 8, 2019

The Week On Wall Street

Stocks posted their second straight weekly gain. The Dow Jones Industrial Average gained 1.17% in five trading days; the S&P 500, 1.27%; the Nasdaq Composite, 1.72%. The MSCI EAFE index of international stocks rose 1.84%.1-4
Investors got some good news last week: an encouraging employment report and indications that a new U.S.-China trade deal might be near.
 

A Solid Hiring Report

The economy generated 196,000 net new jobs in March, according to the Department of Labor. Monthly job growth averaged 180,000 in the first quarter.
The March hiring recovery eased Wall Street concerns about a near-term economic downturn. If payroll growth is this strong in April and May, the Federal Reserve may be motivated to rethink its pause of interest rate hikes.5 
 

Another Step In The Trade Talks

Chinese Vice Premier Liu He said last week that the U.S. and China have come to a consensus on the basics of a new trade accord. President Trump commented Thursday that “the next four weeks” of negotiations will be critical.6
 

What’s Next

The first-quarter earnings season kicks off this week with three of the biggest banks in the country reporting results. The question is whether stocks in the S&P 500 will post earnings that beat analyst expectations to the degree that they have in the past few quarters.

THE WEEK AHEAD: KEY ECONOMIC DATA

  • Wednesday: Minutes from the March Federal Reserve meeting, plus the latest Consumer Price Index, tracking monthly and yearly inflation.
  • Friday: The initial University of Michigan consumer sentiment index for April, which assesses consumer confidence.

THE WEEK AHEAD: COMPANIES REPORTING EARNINGS

  • Wednesday: Bed Bath & Beyond (BBBY), Delta Air Lines (DAL)
  • Thursday: Fastenal (FAST), Rite Aid (RAD)
  • Friday: JPMorgan Chase (JPM), PNC (PNC), Wells Fargo (WFC)
Market Index Close April 5 Week YTD
DJIA 26,424.99 +1.17 +13.28
NASDAQ 7,938.69 +1.72 +19.64
S&P 500 2,892.74 +1.27 +15.39
Treasury Close April 5  Week YTD
10 Year Note 2.50 +0.09 -0.19

Sources: wsj.com, treasury.gov - 4/5/19 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. Weekly and year-to-date market index returns are expressed as percentages. 10-year Treasury note yield = projected return on investment, expressed as a percentage, on the U.S. government’s 10-year bond. Weekly and year-to-date 10-year Treasury note yield differences are expressed in basis points.

Weekly Tip

A new business owner should have some cash available for professional services, such as legal or accounting help. Those services will probably be necessary before the business receives any funding.

Citations
  1. quotes.wsj.com/index/SPX
  2. quotes.wsj.com/index/DJIA
  3. quotes.wsj.com/index/COMP
  4. quotes.wsj.com/index/XX/990300/historical-prices
  5. cnn.com/2019/04/05/economy/march-jobs-report/index.html
  6. cnbc.com/2019/04/05/stock-market-us-china-trade-nonfarm-payrolls-in-focus.html

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