LAST WEEK’S HIGHLIGHTS
1. The equity market suffered across the board losses. President Trump’s comments on the Charlotte protests resulting in unconfirmed rumors of administration officials resigning received the most attention. On top of that was another terrorist van attack in Spain and conflicting opinions from the Federal Reserve minutes concerning inflation and interest rate hikes/balance sheet reductions. The DJIA was off 0.8%, the S&P and NASDAQ were down 0.6%. Retail stocks continue to take a hit from the Amazon threat to their business.
2. More political and business officials publicly disagreeing with Pres. Trump’s behavior. This will make it more difficult to pass tax and regulation legislation.
3. Geopolitics. The North Korea/USA war of words slipped to the backround. This looked good for markets until the next Trump fiasco and European terrorist attacks took center stage.
THIS WEEK’S EXPECTATIONS
1. Economic data. Another very light week. Only July new and existing home sales; and July durable goods are on tap.
2. Dog days of August. Congress is recess. However, when they return the debt ceiling, the budget and tax reform will be discussed and hopefully solved.
3. Potential outsized moves to news. Many market participants are on vacation so a lack market liquidity could move equity markets if something unexpected arises.