The major U.S. benchmark indexes continued to trend downward, losing value for the second week in a row. The Russell 2000 and the Nasdaq, both of which had been the leading performers for much of the year, suffered the biggest weekly losses, followed by the S&P 500 and the Dow Industrials. While energy shares performed well on the heels of oil prices reaching a four-year high, overall fears from speculation on trade between The United States and several of its trade partners pulled investors away from stocks.
LAST WEEK’S ECONOMIC HEADLINES
- The third and final estimate of the first-quarter gross domestic product showed the economy expanded at a rate of 2.0%.
- Both pre-tax and after-tax consumer income increased in May. Of note, consumer prices are up — an inflation indicator of importance to the Federal Open Market Committee. Look for possibly more interest rate increases intended to keep the reins on inflation.
- New home sales soared in May as weakening sales prices may have helped.
- New orders for durable goods fell slightly in May following a similar drop in April. Inventories increased 0.3% — the same increase as in April.
- Despite rumblings of tariffs and trade wars, exports surged in May, pulling down the trade deficit in May.
EYE ON THE WEEK AHEAD