Weekly Economic Summary - 9/4/2018Submitted by Miller Financial Group, LLC on September 4th, 2018
U.S stocks have opened this holiday shortened week on a down note with the global trade story continuing to worry investors. In early trading, all of the major U.S indices are firmly in negative territory. Both the S&P500 and Nasdaq have been in positive territory for five consecutive months while the Dow has gained for two straight months.
Trade tensions are once again in the news as the U.S. is scheduled to continue negotiations with Canada in an attempt to revise the North American Free Trade Agreement. Talks ended Friday without any agreement to terms and over the weekend President Trump threatened to leave Canada out of any new NAFTA pact. Furthermore, Trump urged lawmakers not to prevent a bilateral deal between Mexico and the U.S. from moving forward without Canada. The trade story will continue to be a focal point throughout the week with the potential of Trump ordering another round of tariffs on over $200 billion worth of Chinese imports.
Nike is proving to be a headwind for the Dow this morning with shares of its stock falling nearly 3% after it announced that its new ad campaign would feature Colin Kaepernick, the NFL quarterback who led player protests against racial injustice and police brutality by kneeling during the national anthem.
The economy continues to show growth and stability evidenced by a strong reading on manufacturing activity. The Institute for Supply Management’s manufacturing survey rose to 61.3 in August which is its highest level since May 2004.
Results around the world are mixed. Gold is down nearly 1% and oil is trading in positive territory.
Have a great week!