Market Commentary, 09/17/18
Last week the U.S. stocks closed broadly higher with the Dow up 0.9%, the S&P 500 gaining 1.1%, and the Nasdaq up 1.3% to close above 8,000.
Concerns about a new round of tariffs weighed heavily on the stock market early in the week. However, news that the Treasury Secretary would lead new trade negotiations with China led to a market surge later in the week. In fact, stocks recorded their largest daily gain this month on Thursday, as the Dow rose 147 points.
The Labor Department announced initial claims for unemployment benefits fell to 204,000 last week – the lowest level since December 1969. This report was well below the expected 210,000. Additionally, the continuing claims, people already collecting unemployment benefits, declined to 1.7 million – the lowest level since 1973. (Source: Sherman Sheet)
According to the Federal Reserve, industrial production rose 0.4% in August, resulting in a 4.9% increase in output year over year. This monthly growth was spurred by the increase in manufacturing activity we referenced last week. Typically trade tensions and a strong dollar hurt manufacturing, but President Trump’s “America First” trade policies are helping the industry thrive. (www.marketwatch.com)
The economy continues to show strength further reinforcing our positive outlook for the stock market.
Jeremiah Patterson, CFP®
Copelin Financial Advisors
514 Brooks Street
Sugar Land, TX 77478
Phone: 281 240-2902
Fax: 281 240-2856
Securities offered through ProEquities, Inc., a Registered Broker-Dealer and Member FINRA & SIPC Advisory Services offered through Harvest Investment Services, LLC., a Registered Investment Advisor Copelin Financial Advisors, Inc and Harvest Investment Services, LLC are independent of ProEquities, Inc.