Your Weekly Summary – July 9, 2018

Markets Reverse From Prior Week Losses

 

What a difference a week makes! Perhaps July 4th Fireworks had something to do with all Major US Stock Indexes finishing firmly in the black. The Dow was up .80%, the S&P500 up 1.55% and the Russell 2000 up 3.12%. The Barclay’s Aggregate Bond Index finished the week up .24%

 

 

Interestingly, as the United States initiated $34 Billion Tariff on Chinese goods, the Market was firmly up with the true beginning of Tariff implementation taking place on Friday. China waited for the US to throw the first punch and then responded with retaliatory tariffs on some of our goods going into China.

 

Jobs and Interest Rates

 

Last Friday’s Employment Report added 213,000 new jobs with increases in Health Care, Manufacturing and Construction, however Retail trade experienced a decrease. The unemployment rate increased from 3.8% to 4% as several hundred new workers were reported added into the system.

 

Interestingly, over in Euro Land, the unemployment rate was reported @ 8.4%, its lowest level since December 2008. Wow, jobs certainly seem better on our side of the pond!!

 

The 10 Year US Treasury Note Yield dropped from 2.85% the week prior to 2.83%. The 2-10 Year Spread we continue to mention now stands @ .29%. I’m starting to see a lot of articles speculating on what this may mean. Historically, when the yield curve inverts, meaning the 2 year rate is higher than the 10 year rate, we have found ourselves in a recession 6 to 12 months later. The question is, will the yield curve actually invert and if so, will history repeat itself, rhyme or be different this time??

 

Economic Data

 

This week finds us light with economic data. Tonight however, @ 9:00 pm, President Trump will announce his Nominee for the Supreme Court. As always, this is extremely important to the future of our Country!!

 

Right around the corner is the beginning of 2nd Quarter Corporate Earnings Reports. I’m reading that most people anticipate another quarter of excellent results with Energy and Technology among the leaders. Why Energy; we haven’t seen Oil prices this high in some time.

 

Question of the Week?

 

Which of our Supreme Court Justices has the longest current tenure?

 

a) Chief Justice Clarence Thomas

b) Ruth Bader Ginsburg

c) Anthony Kennedy

d) Sonia Sotamayor

e) Samuel Alito

 

Answer to Last Week’s Question of the Week!

 

The Question was, “In 2017, what was the largest selling “Sports Car” in the United States?”

 

a) Chevrolet Corvette

b) Dodge Challenger

c) Audi A5

d) Ford Mustang

e) Mazda MX-5 Miata

f) Chevrolet Camaro

 

The correct answer is the Ford Mustang, selling 81,866 cars. The Chevrolet Camaro was 2nd selling 67,940 cars