A positive labor report may have been enough to offset investor concerns about the tit-for-tat tariff war between the United States and its trade partners, as stocks posted positive returns by last week’s end. Trading volumes were relatively light, as expected, during the holiday-shortened week. As has been the case for much of the year, the tech-heavy Nasdaq and the small caps of the Russell 2000 enjoyed the largest weekly gains, followed by the large caps of the S&P 500, the Global Dow, and the Dow.
LAST WEEK’S ECONOMIC HEADLINES
- Employment increased by 213,000 in June, while the unemployment rate rose as more people were looking to enter the job market.
- The May trade deficit for goods and services down from April. This report does not reflect the impact, if any, of the trade tariffs imposed in June and July between the United States and many of its trade partners.
- Depending on which survey you read, economic activity in the manufacturing sector may have expanded in June.
- On the other hand, the IHS Markit final U.S. Manufacturing Purchasing Managers’ Index™ for June showed the overall rate of growth in the manufacturing sector dipped to its lowest rate in four months.
- According to the latest Non-Manufacturing ISM® Report On Business®, economic activity advanced in the non-manufacturing (services) sector in June over May.
EYE ON THE WEEK AHEAD