US Stock Markets Ended July 12, 2019

The S&P 500 set multiple record highs for the week, closing above 3,000 for the first time on Friday, led by testimony from Federal Reserve Chairman Jerome Powell indicating the central bank will likely cut rates soon. In economic news, inflation readings came in above expectations but remained around the Fed's target of 2%. Shares of UnitedHealth Group Inc. and other managed care names gained following the announcement the Trump administration will not look to limit drug rebates to pharmacy benefit managers. By contrast, drug makers and healthcare equipment names posted steep losses as the current administration is likely to look to other ways to reign in healthcare costs. Shares of Costco Wholesale Corp. rose after reported strong comparable-store-sales versus a year ago on strength in e-commerce, store traffic and higher prices. Shares of Deutsche Bank AG were hit hard on skeptisim the newest turnaround plan will be effective. Large U.S. banks, including JP Morgan Chase & Co. and Morgan Stanley, are likely to gain market share in equity trading with the large German bank shuttering their unit. In merger news, Cisco Systems announced the acquisition of Acacia Communications, Inc. for roughly $2.6 billion. Looking near term, markets are likely to be driven by sentiment over future rate moves, with good economic news now being viewed as negative news by many traders because it could delay potential rates cuts. Earnings season is also set to start next week with JP Morgan Chase & Co and Goldman Sachs Group set to report on Tuesday.
Posted on Monday, July 15, 2019 @ 8:08 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.