Last Week:

Despite trade concerns the Dow and S&P have a strong week.

President Trump hit China with another set of tariffs. This time the President ordered a 10% tariff on $200 billion of additional Chinese goods. But Trump warned his latest tariff could rise form 10% up to 25% by the end of this year. China responded with a 5-10% tariff on $60 billion U.S. goods. In truth, a real trade war with China wouldn’t be good for either country. China has taken advantage of the U.S. for decades. President Trump is trying to get our country a better deal. China doesn’t want to give in and is trying to save face. For now my questions is: Who will blink first?

Housing news: Housing starts were up +9.2% in August; up +9.4% year-over-year. Existing home sales were unchanged in August; down -1.5% year-over year.

This Week:

The economic focus of the week: It will come on Wednesday afternoon when the Federal Reserve’s Open Market Committee (FOMC) meeting statement is released. The FOMC meets eight time/year; this being the sixth time. The results of this meeting, which takes place this Tuesday and Wednesday, is expected to see the Fed’s interest rate rise another ¼ point. If that takes place, the Fed’s rate will move from +1.75% up to +2.0%.

The final Q2 GDP number will be released on Thursday morning. The current reading is at +4.2%. It’s possible that could remain or it could rise a tick up to +4.3%. The number gets released at 8:30am. Either way, the rolling 4-quarter average will remain over +3.0%.

Indicator focus:  September’s consumer confidence number, July’s Case-Shiller home price index (Tue); FOMC meeting announcement, the Fed Chair press conference (Wed); August’s durable goods and international trade numbers, the final Q2 GDP number (Thu); and September’s final consumer sentiment number (Fri).

Hope you have a great week.


P.S. Please feel free to forward this commentary to family, friends, or colleagues. If you would like us to add them to the list, please reply to this e-mail with their e-mail address and we will ask for their permission to be added.

Securities offered through Securities America, Inc., member FINRA/SIPC.  Advisory services offered through Securities America Advisors, Inc. Parker Wealth Management and Securities America not affiliated.

* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.   The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. Yahoo! Finance, the Wall Street Journal, Investor’s Business Daily and Barron’s are several of the sources used for financial information.

* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Consult your financial professional before making any investment decision. You cannot invest directly in an index.   Past performance does not guarantee future results. No strategy can assure a profit or protect against a loss. Investments in the securities markets involve risk, such as loss of your principal.