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 Economy and Credit Markets Ended Aug 2, 2019
Posted Under: Weekly Market Commentary

 
Yields continued to fall during a busy week that included an interest rate cut, an escalation in the trade war between the U.S. and China, and new jobs data. On Wednesday, the Fed cut rates by 0.25%, citing weak global growth, trade uncertainty, and soft inflation. However, given the absence of economic weakness in the U.S., Fed Chairman Jerome Powell called the move a "midcycle adjustment" as opposed to a long series of rate cuts. Despite Chair Powell's comments, the market still widely expects the Fed to cut rates again at its next meeting in September. Bonds surged on Thursday, with the yield on the benchmark U.S. 10-year Treasury note falling below 2% to its lowest level since November 2016, after President Donald Trump announced that he would impose a 10% tariff on $300 billion in additional Chinese imports beginning September 1. Meanwhile, economic data released Friday showed jobs gains remained solid as the U.S. economy added 164,000 jobs in July, which was about in line with expectations. Additionally, the unemployment rate held at 3.7% and average hourly earnings were up 3.2% over the prior year. The July gain marked 106 consecutive months the U.S. economy has added jobs. Major economic reports (related consensus forecasts, prior data) for the upcoming week include: Wednesday: August 2 MBA Mortgage Applications (N/A, -1.4%); Thursday: August 3 Initial Jobless Claims (215k, 215k), June Final Wholesale Inventories MoM (0.2%, 0.2%); Friday: July PPI Final Demand MoM (0.2%, 0.1%).  
Posted on Monday, August 5, 2019 @ 8:19 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
A Snapshot Of Bond Valuations
U.S. Stocks Have Outperformed Foreign Stocks Since President Trump Was Elected
US Stock Markets Week Ended July 26, 2019
US Economy and Credit Markets Week Ended July 26, 2019
A Snapshot Of Sector Investing
The More Things Change…
Interest Rates and Earnings, It All Comes Full Circle
US Stock Markets Week Ended July 19, 2019
US Economy and Credit Markets Week Ended July 19, 2019
The Low U.S. Consumer Credit Default Rate Is Good For Discretionary Stocks
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.