Trade is dominating the conversation in the financial markets, with developments steadily unfolding. Wednesday, China’s state media suggested that the country could soon cut off exports of rare earths to the U.S. Late Thursday, the Trump administration announced 5% tariffs on all imports from Mexico, effective June 10; these taxes could rise in the coming months.
Meanwhile, on Main Street…
The Conference Board’s consumer confidence index soared to 134.1 in May, its highest reading since November; the consumer view of present economic conditions was the best since the end of 2000. Additionally, the University of Michigan’s consumer sentiment index ended May at 100.00, near the 15-year peak of 102.4 seen earlier in the month.
Spring also brought a solid advance in consumer spending. April’s gain was 0.3%, according to the Bureau of Economic Analysis.
While Wall Street remains cautious and concerned about trade, consumers appear to be upbeat, sensing widespread economic prosperity. Stocks have surged this week after Fed Chairman Jerome Powell signaled investors that the Central Bank was open to easing monetary policy in an effort to “save” the economy amid trade tensions with China and Mexico. This underscores the fact that the state of the economy does not necessarily correspond to the state of the stock market (and vice versa)
Does the state of “YOUR economy” match or correspond to the state of your portfolio? Better? Worse? Lets decide and/or get clarity on how the two could or should match! Email or call me; I’d love to explore further with you—better, 15 minute consults can be booked here.
THE WEEK AHEAD: KEY ECONOMIC DATA
Monday: The Institute for Supply Management releases its latest factory purchasing manager index, which takes the pulse of the U.S. manufacturing sector.
Tuesday: Federal Reserve Chairman Jerome Powell speaks on monetary policy at the Federal Reserve Bank of Chicago.
Wednesday: Payroll giant ADP releases its May private-sector employment snapshot.
Friday: The Department of Labor presents its May employment report.
THE WEEK AHEAD: COMPANIES REPORTING EARNINGS
Tuesday: Cracker Barrel Old Country Store (CBRL), Salesforce (CRM)
Thursday: Beyond Meat (BYND), J.M. Smucker (SJM)