US Stock Markets Ended July 5, 2019
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The S&P 500 reached record levels to start Wednesday's shortened trading session before dropping after the holiday to close out last week with a 1.69% return. Friday's job report added to the case that an interest rate cut by the Federal Reserve is not as necessary as President Trump believes. Chairman Powell has maintained the Fed's political independence, but a possible shift of opinion on the Board of Governors is looming with the potential nomination of some of the President's partisan allies. Ten of the 11 sectors in the S&P 500 traded higher last week. Pressure in the Energy sector was felt as the group traded down with oil falling by over 1.6%. Communication Services, led by Viacom Inc., was the best performing group in the index with group returning over 2.8%. Even as stocks trade higher, merger and acquisition activity are steady. Last week it was reported Broadcom Inc. is rumored to be considering a $16 billion-dollar takeover of cybersecurity software maker Symantec Inc. Cybersecurity remains a top concern for companies as more and more business depends on secure data warehousing. As investors look out into the second half of the year, behind them is a stock market that had its best first half since 1997. The same market drivers will persist into the second half of the year. With trade, interest rates, and geopolitical risks keeping investors on alert in the second half.
Posted on Monday, July 8, 2019 @ 8:56 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.