US Stock Markets Ended September 14, 2018
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After falling last week, equities regained their footing and posted solid gains for the week on renewed trade deal optimism. President Donald Trump directed aides to procced with tariffs on an additional $200 billion in Chinese goods. However, the administration has delayed an announcement on the new round of tariffs due to concerns raised by corporations. Information technology stocks rallied, recovering part of the losses the sector suffered last week on fears of more stringent regulation and the effect of tariffs on the industry's trade-dependent companies. In economic news, U.S. core inflation unexpectedly dropped in August as medical-care costs and apparel prices fell, leaving room for the Federal Reserve to continue to raise rates slowly. The Fed is widely expected to raise rates later this month. In stock news, Activision Blizzard, Inc. released a new multiplayer battle royale game to compete with Fortnite. Apple Inc. unveiled three new smartphones with higher price tags and a next generation watch with added health features. Shares of Sonic Corp. jumped after the restaurant chain pre-announced better-than-expected comparable store sales on increased store traffic. Discovery, Inc. shares moved higher following a licensing agreement with Hulu to provide over 4,000 episodes on the streaming service. Looking ahead to the future, trade sentiment will likely continue to drive sentiment in the market over the short-run with earnings season nearly a month away. With the S&P 500 in reach of recent highs, continued strength in corporate profits could propel the market to new highs in the coming quarters. The S&P 500 is projected to grow earnings by 19.3% next quarter and 23.5% for 2018.
Posted on Monday, September 17, 2018 @ 8:09 AM

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.