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US Stock Markets Ended June 14, 2019
Stocks rose for the week, buoyed by a trade deal between the U.S. and Mexico to avert tariffs being placed on Mexican imports. Economic data was mostly positive for the week as retail sales advanced 0.5% in May and April's number was revised significantly higher. In addition, industrial production surprised to the upside with growth of 0.4% and inflation remains benign for both consumers and manufacturers. In stock news, Broadcom Inc. slumped after reporting disappointing guidance, citing the current trade dispute between the U.S. and China. Other semiconductor stocks sold-off in sympathy as the trade dispute is likely to have a bigger impact on the chip industry. Shares of Advanced Micro Devices Inc. initially jumped after Microsoft Inc. announced they will use AMD chips in their next gaming system, but fell later in the week with the rest of the industry. Casey's General Stores Inc. reported another strong quarter on strong same-store sales and better-than-expected margins on gasoline. In merger news, United Technologies Corp. and Raytheon Co. announced a merger of equals, creating an industrial powerhouse with $74 billion of pro-forma revenue. Salesforce.com Inc. announced the acquisition of Tableau Software Inc., a leader in data analytics and visualization, for around $15 billion in an all-stock transaction. Looking ahead, all eyes will be on Fed's meeting next week as the market is now pricing a rate-cut before the end of the year. Additionally, headlines around trade and increased geo-political tensions between the U.S. and Iran over the recently damaged tankers will be at the forefront of traders' minds. Looking longer term, with the market approaching past highs, the economy and corporate fundamentals will likely need to remain strong to keep stocks moving higher.
Monday, June 17, 2019 @ 8:14 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.