October 11, 2019
After starting on a weak note due to concerns about U.S-China trade, this week the S&P 500 gained over 1% due to U.S.-China trade deal optimism, as it seems a partial deal is in the works. Several international stock indices gained even more, benefiting from both China and Brexit optimism. While banks, government offices, and the bond markets will be closed for a holiday on Monday, the stock market will remain open. On Tuesday morning and throughout the week, several financial and healthcare companies will kick off Q3 earnings season. For more information on the markets or your portfolio, we encourage you to contact your Buckingham advisor.
Ryan P. Johnson, CFA, CFP®
Director of Equity Research
October 4, 2019
Stock prices and interest rates moved lower this week on economic data that showed contraction in manufacturing and a slowing of growth in the services sector of the economy (services makes up about 80% of GDP). Today, the monthly jobs report came in just shy of expectations with 136,000 jobs being added in September, but the July and August reports were revised higher. The unemployment rate fell to a 40-year low of 3.5%. The 10-year Treasury yield fell to nearly 1.5%, and the odds of another rate cut from the Federal Reserve at the end of October shot up to 77% in the futures market. Fed Chairman Powell speaks this afternoon as well as on Monday, Tuesday, and Wednesday next week. For more information on the markets or your portfolio, we encourage you to contact your Buckingham advisor.
September 27, 2019
This week the final read on Q2 GDP (Gross Domestic Product) came in as expected, showing 2.0% economic growth. Stocks sold off a bit on Tuesday when reports surfaced that Democratic members of Congress would formally announce an impeachment inquiry of the President, but the market recovered most of those losses Wednesday. However, just before noon on Friday, stocks declined again on news that President Trump is considering limiting investments in China, including possibly delisting Chinese companies from U.S. stock exchanges and by reducing U.S. government pension exposure to Chinese investments. The S&P 500 declined about 1.5% this week. Next week we will get monthly reads on manufacturing, services and job growth. For more information on the markets or your portfolio, we encourage you to contact your Buckingham advisor.
September 20, 2019
As expected, on Wednesday the Federal Reserve cut the Federal Funds Rate by 0.25% to a range of 1.75-2.00%. Fed Chairman Powell noted that trade tensions, weakening economies in Europe and China, and Brexit were risks (particularly for manufacturers), but the Fed also noted household spending remains strong. This week the 10-year Treasury yield, which is correlated to mortgage rates, declined to about 1.75%, which is still historically low. The stock market was down slightly, and we are still about a month from Q3 earnings season. Next week we will get a final read on Q2 GDP (Gross Domestic Product) that is expected to show 2.0% economic growth. For more information on the markets or your portfolio, we encourage you to contact your Buckingham advisor.