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Market Direction Is Important –
Updated Chart of the S&P 500 and Secondary Signals
Of our Four secondary indicators under our MTI:
Relative Strength Index (RSI)-Positive
Chaikin Money Flow (CMF)-Positive
Money Flow Index-MFI-Positive
More on the Market and the Economy:
Stocks advanced on Friday following an upbeat jobs report, with the S&P 500 closing the week with a .1% gain.
This week data will be released on industrial production, small business optimism, the Job Openings and Labor Turnover Survey and the Fed’s Beige Book.
The economy added 222,000 jobs in June and hiring picked up. The unemployment rate rose to 4.4% as more people entered the labor force looking for work; the labor force participation rate rose to 62.8%.
The release of the Fed’s meeting minutes showed that the central bank may begin to reduce its $4.5 trillion in debt holdings in September, as several officials “preferred to announce the start of the process within a couple of months”. Officials consider the recent slowdown of inflation to be temporary, as “most participants viewed the recent softness in these price data as largely reflecting idiosyncratic factors…and expected these developments to have little bearing on inflation over the medium run. Participants continued to expect that, as the effects of transitory factors waned and labor market conditions strengthened further, inflation would stabilize around the Committee’s 2% objective over the medium term”.
Manufacturers are growing at the fastest pace in three years, with the ISM manufacturing index rising to 57.8% in June, the highest reading since 2014. Measures of employment, new orders and production rose.
The US trade deficit shrank to $46.5 billion in May, as exports rose to $192 billion and imports slipped to $238.5 billion.
Source: Census Bureau
The Atlanta Fed’s GDPNow forecast for second quarter growth dipped to 2.7% following last week’s manufacturing data.