The Week On Wall Street
Stock benchmarks were little changed for much of last week, but a rally occurred Friday after news broke that the U.S. and China could be closing in on the first phase of a new trade pact.
At Friday’s close, the Dow Jones Industrial Average crossed the 28,000 level. The Dow rose 1.17% for the week, outgaining the S&P 500 (which advanced 0.89%) and the Nasdaq Composite (which added 0.77%). The MSCI EAFE index, representing developed overseas stock markets, fell 0.77%.1,2
Will There Be A Trade Breakthrough?
Friday, Secretary of Commerce Wilbur Ross told the media that “in all likelihood,” a phase-one trade deal between China and the U.S. would presently happen, stating that the talks were “down to the last details.” Thursday evening, White House economic adviser Larry Kudlow expressed similar optimism, noting that negotiations were “coming down to the short strokes.”
That said, the Wall Street Journal reported last week that President Trump is not yet committed to signing a phase-one trade deal. Secretary Ross noted that such an agreement would be “relatively limited in scope.”3,4
Consumers Boost Their Buying
Retail sales advanced 0.3% in October, according to the Department of Commerce. That matched the gain forecast by economists polled by MarketWatch. This was a comeback after a September decline.5
The Week Ahead: Key Economic Data
- Wednesday: Minutes from the October Federal Reserve meeting appear.
- Thursday: The National Association of Realtors presents data on October existing home sales.
- Friday: The University of Michigan publishes its final Consumer Sentiment Index for November (an assessment of consumer confidence).
The Week Ahead: Companies Reporting Earnings
- Tuesday: Home Depot (HD), Medtronic (MDT), TJX Companies (TJX)
- Wednesday: Lowe’s (LOW), Target (TGT)
- Thursday: Intuit (INTU), Ross Stores (ROST)
|Market Index||Close Nov 15||Week %||YTD %|
|Treasury||Close Nov 15||Week %||YTD %|
|10 Year Note||1.84%||-0.10||-0.82|
Sources: wsj.com, treasury.gov – 11/15/2019
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.