Weekly Economic Summary - 10/1/2018Submitted by Miller Financial Group, LLC on October 1st, 2018
U.S. stocks are in rally mode this morning to kick off a new month and quarter in response to a trade deal struck between the U.S. and Canada that will revise the North American Free Trade Agreement. The Dow is just below an all-time intraday high and the S&P500 is pushing toward record levels as well.
The new trade agreement reached between the U.S., Canada and Mexico is giving investors a breather from the trade worries that have been a headwind for the markets the past several months. The U.S. and Canada reached a last minute deal late Sunday night on revising NAFTA. The pending agreement will allow Canada to participate in an agreement reached in late August between the U.S. and Mexico avoiding the potential of President Trump following through on threats to kill NAFTA outright or break the trilateral pact into separate pieces.
In economic news, a reading on the U.S. manufacturing sector from Markit registered a 55.6 reading which is above the previous reading of 54.7. In other manufacturing news, the Institute for Supply Management revealed a reading of 59.8 which was slightly below expectations. Investors will be hearing from several Federal Reserve speakers throughout the week along with comments later this morning from President Trump about the revamped NAFTA Agreement.
Tesla shares are up over 17% this morning after Chairman and Chief Executive Elon Musk settled a Securities and Exchange fraud probe. The settlement will force the Chief Executive to step down as Chairman for three years and the company will pay $40 million in fines.
Markets in China and Hong Kong are closed for holidays. European stocks are moving upward after a slow start.