The Weekly Update

Week of February 10th, 2020
By Christopher T. Much, CFP®, AIF®

Left Tailight Ford Mustang

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%.

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.

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.

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.

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

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, 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.
WkEnding1200207 - CTS Financial Group
Past performance is no guarantee of future results. Data collected from Investors FastTrack software.
https://www.wsj.com/market-data
https://quotes.wsj.com/index/XX/MSCI%20GLOBAL/990300/historical-prices
https://www.cnn.com/2020/02/06/economy/china-tariffs-coronavirus/index.html
https://finance.yahoo.com/news/jobs-report-january-2020-labor-market-bls-002348568.html
https://ycharts.com/indicators/us_pmi
Published On: February 10, 2020|Categories: Weekly Update|

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This material is provided for informational purposes only. The information contained herein should not be construed as the provision of personalized investment advice. Information contained herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security. Past performance is no guarantee of future results. Investing in the stock market involves the risk of loss, including loss of principal invested, and may not be suitable for all investors. This material contains certain forward-looking statements which indicate future possibilities. Actual results may differ materially from the expectations portrayed in such forward-looking statements. As such, there is no guarantee that any views and opinions expressed in this material will come to pass. Additionally, this material contains information derived from third party sources. Although we believe these sources to be reliable, we make no representations as to the accuracy of any information prepared by any unaffiliated third party incorporated herein, and take no responsibility therefore. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change without prior notice. For additional information about CTS Financial Planning, Inc. and the material posted on this website, please review our Important Disclosures.

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