To my clients:
It was a down week for North American stock markets with the Canadian TSX finishing down 0.02% (note the extra "0"); the U.S. Dow Jones Index down 0.2%; and the U.S. S&P 500 down 0.3%.
Bare bones update today's as we await next week’s Big # economic reports consisting of the monthly Employment report and the two ISM indices (Manufacturing and non-Manufacturing):
- For the second consecutive week, jobless claims receded sharply from the recent mini-spike. In fact, in just these two weeks, the report erased ALL of the increase in jobless claims that occurred the prior 6 weeks. For now, this potential concern has been put to rest.
- Second Quarter GDP was revised UP by 0.5% to a new reading of 3.8% for the quarter. GDP at these levels represents very good growth.
- The Fed’s preferred measure of inflation, the Core PCE Price Index, came in as expected at 2.9%. While this represents price inflation above the Fed’s 2.0% target, it also does not reveal a worrisome acceleration higher.
Overall, the data this week was solid. In spite of ongoing tariff concerns, the economy continues to be incredibly resilient. Accordingly, stock positioning for clients remains at the status quo modestly above the ling-term targets set in clients’ individual Investment Policy statements.
That’s it for this week. All the best,
Nick
Nick Scholte, CIM, FCSI
Senior Portfolio Manager
RBC Dominion Securities Inc. │ Tel: 604.257.7569
Metrotower 2, 4720 Kingsway, 12th Floor │ Burnaby, BC │ V5H 4N2
Toll Free: 1.844.665.9900 │Email: nick.scholte@rbc.com
Visit Our Website: www.nickscholte.ca