The following economic awareness entry is based on short-term events and therefore should not be taken as information towards making investment decisions, which are of a long-term nature. It is only meant to provide clarity regarding current economic events, as there is often a large degree of incorrect information dispersed through the media or other sources.
The Week on Wall Street
Stocks rallied during a week in which Wall Street was buffeted by headlines.
Following a mixed Monday, the market jumped Tuesday after dovish remarks from Federal Reserve Chairman Jerome Powell. Breaking out of a 6-week losing streak, the Dow had its best week since November.
Jerome Powell's Comments
Speaking at the Federal Reserve Bank of Chicago, the Fed chair stated that central bank officials "will act as appropriate to sustain the expansion" of the economy in the face of "recent developments involving trade negotiations and other matters."
The next 2-day Fed policy meeting ends on June 19, with a press conference to follow.
Employers added just 75,000 net new jobs to their payrolls in May, according to the Department of Labor. Economists polled by Reuters thought that the gain would be 185,000. The main unemployment rate held at 3.6% last month; the U-6 rate, which includes the underemployed and those who have stopped looking for work, fell 0.2% to 7.1%.
To some analysts, the weak May hiring number hinted at private-sector concern over tariffs. To others, it simply signified the possibility that the economy may be at or near full employment.
While breaking news does often merit investor attention, refrain from letting the headlines of the moment prompt you into emotional decisions. Brace yourself for further headlines that may drive market volatility because new developments are arriving quickly in the financial markets.
THE WEEK AHEAD: KEY ECONOMIC DATA
Wednesday: The latest Consumer Price Index, showing the rate of inflation in May and across the past 12 months.
Friday: The Census Bureau's May retail sales report as well as the University of Michigan's initial June consumer sentiment index, measuring consumer confidence levels.
Source: Econoday / MarketWatch Calendar, June 7, 2019
The Econoday and MarketWatch economic calendars list upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
THE WEEK AHEAD: COMPANIES REPORTING EARNINGS
Tuesday: H&R Block (HRB)
Wednesday: Lululemon Athletica (LULU)
Thursday: Broadcom (AVGO)
Source: Morningstar.com, June 7, 2019
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Any investment should be consistent with your objectives, time frame and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
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