- Thanks in part to the Federal Reserve signaling that a rate cut is in fact coming, the equity markets ended the week on Friday with a surge higher. The S&P 500 closed above the 3000 and the Dow closed above the 27,000 level for the first time. https://www.cnbc.com/2019/07/12/stock-market-dow-futures-rise-after-fed-hints-at-rate-cut-ahead.html
- The U.S. Bureau of Labor Statistics (BLS) reported on Friday that the Producer Price Index for final demand ticked up 0.1% (seasonally adjusted) in June, outpacing expectations for a flat monthly reading and coming on the heels of a 0.1% increase in May and a 0.2% advance in April. On an annual basis (unadjusted), the PPI increased 1.7%, exceeding expectations for a 1.6% annual increase, following a 2.8% annual rate of advance in May. https://www.cnbc.com/2019/07/12/us-producer-price-index-ppi-june-2019.html
- Bonds rally on Monday as rates drop again and the equity markets are somewhat flat as 2nd quarter corporate earnings start up this week. Earnings are expected to be weaker for many of the S&P 500 companies in the second quarter, but given the expectations for interest rates to continue lower, a stabilization in China’s economy, a potential trade deal or at least the continuation of the current truce, and a continued healthy U.S. consumer, we could see profits pick up in the second half of the year. https://www.bloomberg.com/news/articles/2019-07-14/asia-stocks-to-dip-as-china-growth-data-awaits-markets-wrap?srnd=premium
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