The Fiduciary Advisor Report – Monday, February 10, 2020 – Alpine Utah

THE WEEK ON WALL STREET

Stocks advanced four days out of five during the past market week, erasing the losses of the week before.

The Nasdaq Composite surged 4.04%, the S&P 500 3.17%, and the Dow Jones Industrial Average 3.00%. Foreign stocks also rallied: the MSCI EAFE index added 2.21%.^1,2

China Plans to Halve Some Tariffs

Thursday, investors woke up to the news that China would be lowering import taxes on about $75 billion of U.S. products. Later this week, a set of 10% tariffs is slated to drop to 5%, and a group of 5% tariffs is scheduled to fall to 2.5%.

This reduction is part of the phase-one trade deal that China agreed to last month, a pact which may be a step toward a trade truce with the U.S.³

January’s Net Job Gain: 225,000

The Department of Labor’s latest employment report exceeded expectations. Economists surveyed by Bloomberg projected 165,000 net new hires last month. The main jobless rate ticked north to 3.6%; the U-6 rate including the underemployed rose 0.2% to 6.9%.

This upside surprise points to ongoing strength in the economy. Stocks declined Friday after the report’s release, however, as traders viewing the data saw less reason for a Federal Reserve rate cut in the near future.⁴

A Manufacturing Positive

The U.S. factory sector grew last month, for the first time since July. The Institute for Supply Management’s purchasing managers index for the manufacturing sector, which traders view as a fundamental economic indicator, came in at 50.9 in January; any reading above 50 indicates sector expansion.⁵

WHAT’s AHEAD

Investors should note that U.S. stock and bond markets will be closed on Monday, February 17 for Presidents Day.

T I P   O F   T H E   W E E K

By continuously reviewing your business budget, you can pinpoint how well your company is following its financial objectives throughout the year.

THE WEEK AHEAD: KEY ECONOMIC DATA

Tuesday: Federal Reserve chairman Jerome Powell begins two days of testimony in Congress on U.S. monetary policy.

Thursday: The federal government’s January Consumer Price Index, measuring monthly and yearly inflation.

Friday: January retail sales data from the Census Bureau, and the University of Michigan’s preliminary February consumer sentiment index, an evaluation of consumer confidence levels.

Source: MarketWatch, February 7, 2020

The MarketWatch economic calendar lists 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

Monday: Allergan (AGN), RingCentral (RNG)

Tuesday: Exelon (EXC), Hilton Worldwide Holdings (HLT)

Wednesday: CME Group (CME), Cisco (CSCO), CVS Health (CVS), Shopify (SHOP)

Thursday: Alibaba (BABA), Nvidia (NVDA), PepsiCo (PEP)

Friday: AstraZeneca (ABBV), Enbridge (ENB)

Source: Zacks.com, February 7, 2020

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.

Q U O T E   O F   T H E   W E E K

“We always admire the other person more after we’ve tried to do his job.”

WILLIAM FEATHER

T H E   W E E K L Y   R I D D L E

You can rest on my pad without touching the keys. I will sing all month long as long as you pay your fees. What am I?

LAST WEEK’S RIDDLE: There is a word for a place in Europe, a place where many travelers like to go. But, if you take the first letter of this word and put it at the end of the other four letters in the word, you have something no one likes. What is this word?

ANSWER: Spain (Pains).

CITATIONS:

1 – wsj.com/market-data [2/7/20]

2 – quotes.wsj.com/index/XX/MSCI%20GLOBAL/990300/historical-prices [2/7/20]

3 – cnn.com/2020/02/06/economy/china-tariffs-coronavirus/index.html [2/6/20]

4 – tinyurl.com/utpxrzd [2/7/20]

5 – ycharts.com/indicators/us_pmi [2/6/20]

CHART CITATIONS:

wsj.com/market-data [2/7/20]

quotes.wsj.com/index/XX/MSCI%20GLOBAL/990300/historical-prices [2/7/20]

quotes.wsj.com/index/SPX/historical-prices [2/7/20]

treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldAll [2/7/20]

This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This material was prepared by MarketingLibrary.Net Inc., for Mark Lund, Mark is known as a Wealth Advisor, The 401k Advisor, Investor Coach, Financial Advisor, Financial Planner, Investment Advisor and author of The Effective Investor.  Mark offers investment advisory services through Stonecreek Wealth Advisors, Inc. a fiduciary, independent, fee-only, Registered Investment Advisor firm providing investment and retirement planning for individuals and 401k consulting for small businesses.  Mark’s newsletter is called The Fiduciary Report.  Cities served in Utah are: Salt Lake County, Park City, Salt Lake City, Murray, West Jordan, Sandy, Draper, South Jordan, Provo, Orem, Lehi, Highland, Alpine Utah, American Fork, and Utah County.

Category: Blog, Growth Report