Trade Tensions / “Retail Week” – Monday Morning Market Memo – May 20, 2019

Good morning,

Market action continues to be focused on trade negotiations between the world’s two largest economies, the United States and China. Stocks ended lower overall last week, and fell on Friday after media reports stated trade talks between the two countries have stalled. For the week, the Dow Jones Industrial Average fell .7% (its fourth straight weekly drop), the Standard & Poor’s 500 Index dropped .8%, and the NASDAQ Composite dropped 1.3%.

The market is digesting the notion the trade dispute is not going to end anytime soon, and may even be escalating further. Other factors on the market’s radar screen are interest rates – the CME FedWatch Tool now indicates a greater than 50/50 chance of a rate cut this fall – and geopolitical stress in the Persian Gulf, with the price of oil rising amidst conflict with Iran.

Looking to the week ahead it’s what we refer to as “retail week”. Earnings season is about done, but there is one more active week left to go as a batch of high profile retailers report quarterly results. Household names reporting include TJX Companies, Home Depot, Urban Outfitters, Nordstrom, Kohls, JCPenney, Target, Lowe’s, Foot Locker, and Best Buy. As always, feel free to contact us with any questions or concerns you may have, or if you would like to set up a meeting.

All the best,
Southport Station Financial Management, LLC