As I keep saying, it takes much more these days for global events to even get the market to have any response too. Even intraday shooting headlines no longer cause the pullback we’d often see from investors/traders worried about a market impact. Some will read that being a good thing and some will be confused. It’s a thing these days for most negative headlines to simply get brushed off. Society in general has become a bit numb. Guess that’s a result of instant news at our fingertips. Let’s just hope our moral compass doesn’t get numb.
We’ll see if tech can send the quarter out in style, with the Nasdaq (QQQ) slipping 0.3% this past week. The Dow Jones Industrial Average (DIA) gained 2.3% and the S&P 500 rallied almost 1%. We had one of felt like Washington’s more quieter weeks, with the main headline coming late Monday, when President Trump announced that the U.S. will be slapping tariffs on $200 billion worth of Chinese goods starting on September 24. The tariff rate will start at 10%, but will increase to 25% on January 1. The president also said he will impose additional tariffs on $267 billion worth of Chinese goods if Beijing retaliates, which China vowed to do with 5-10% tariffs on $60 billion worth of U.S. goods. While the headlines do cause a little bit of the jitters, for the most part, Wall Street is not over-reacting. Now let’s see if companies start fussing about it as 4th quarter earnings start coming out.
Reuters reported on Friday that OPEC and non-OPEC countries are discussing the possibility of raising output by 500,000 barrels a day to counter falling supply from Iran due to U.S. sanctions. This may have come after President Trump a day earlier tweeted “OPEC monopoly must get oil prices down now!” Despite all the headlines, WTI crude climbed 2.6% this week to $70.77/bbl.
We’ll have some earnings to monitor this upcoming week, with names like Nike (NKE), Accenture (ACN), Cintas Corporation (CTAS), and Vail Resorts (MTN), just to name a few. Also, the Federal Reserve is set to meet this week and the market is expecting a 25 basis point hike in interest rates. The yield on the benchmark 10-yr Treasury note climbed seven basis points to end Friday at 3.07%, while the Fed-sensitive 2-yr yield jumped two basis points to 2.81%.
To be able to get through life in a smooth fashion, one thing you learn from an early age (especially if your parents are all about the discipline) is that you perform on whatever your obligations are as to what is expected. If things change and you are unable to meet current obligations, the reason needs to be quite solid why and you must act on whatever the resolution aims to be. Example, we may have a friend who we are helping do something for and we offer up our time, but suddenly that time is becoming more and more, and it interrupts something that is necessary to keep one’s personal obligations on point (like paying bills to support your family). No one will blame you for needing to take care of that need. But day-to-day obligations, albeit for work or your business are ones you must try and keep up with on a consistent basis. Doing so will make your life a heck of a lot better and also inspire those around you what it means to sacrifice day-in and day-out.
Thanks for reading and have a great weekend!