Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Click for Bio

Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
 

  US Stock Markets Ended May 31, 2019
Posted Under: Weekly Market Commentary

 
Domestic equities experienced losses last week as disappointing trade news dominated headlines. U.S. President Donald Trump returned from his trip to Japan with news that a near-term trade deal didn't seem likely, China "was not ready to make a long-term deal' and then ended last week announcing new tariffs on Mexico in an effort to stem the flow of illegal immigrants into the U.S. The new tariffs on imports from Mexico are scheduled to start on June 10th at 5% and to escalate to 25% by October 1st. Mexican President Lopez Obrador has sent his foreign minister to Washington D.C. to negotiate with U.S. officials to try and avoid the June 10th tariffs. U.S. 1Q19 annualized GDP growth was revised down to 3.1% from the previously announced 3.2%. Both measurements were well ahead of economist projections of 2.3% from April and speak to the strength of the U.S. economy. Uber Technologies Inc. announced quarterly financial results for the first time since their IPO on May 9th and saw shares up 1.5% Friday, while the general market was down. The company is focused on becoming a one-stop shop for local transportation and commerce. In 1Q19 they averaged 17m trips per day, with an annualized booking rate of $59b or 41% year-over-year growth. The company did manage to lose over $1b last quarter, mostly from promotional costs as they continue to strive for acceptance in many of their end markets. U.S. retail continues to struggle, the most recent casualty was The Gap Inc. Despite restructuring plans to spin off their Old Navy brand, the stock fell 9.3% on poor earnings and has fallen 26% for the year. Looking ahead, tariff and trade news will likely drive near-term market returns. Remembering the strong U.S. macroeconomic picture of robust job market, strong corporate earnings and sturdy GDP growth is important for long-term stock market investors. We currently remain constructive on equities long-term, making these near-term dips in equities favorable entry points.
Posted on Monday, June 3, 2019 @ 8:01 AM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
MARKET ANALYSIS
Market Commentary and Analysis
Market Commentary Video
Weekly Market Commentary
Weekly Market Watch
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
US Economy and Credit Markets Ended May 31, 2019
A Case For Investing In Two Basic Necessities
How Equity REITs Have Fared Since 7/8/16
US Stock Market Ended May 25, 2019
US Economy and Credit Markets Ended May 25, 2019
A Snapshot Of The Rally In The U.S. Dollar
Tracking The Retail Investor’s Appetite For High Yield Corporate Bonds
US Stock Markets Ended May 17, 2019
US Economy and Credit Markets Ended May 17, 2019
A Snapshot Of Bond Valuations
Archive
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2020 All rights reserved.