Market Roundup: Second Consecutive Week of Solid Gains

Published: April 8, 2019, 10:42 p.m.

The week kicked off with good economic reports as the U.S. ISM Manufacturing PMI and China Manufacturing PMI, lifting markets and drowning out a decrease in retail sales. We are within a stone’s throw of all-time highs in U.S. markets, on a day when global markets rallied. The S&P 500 Index was up 1.1%, Dow Jones Industrial Average was up 1.2%, and NASDAQ Composite was up nearly 1.3%. Trading was mixed on Tuesday as new economic data was not so encouraging. U.S. core capital goods orders slipped in March while world trade growth is expected to slow this year. On the other hand, China’s manufacturing data had a surprise rebound. Stocks surged before the U.S. markets opened on Wednesday on more trade deal optimism as the Financial Times reported that the United States and China had reached agreements on a majority of issues but were struggling with implementation and enforcement. The enthusiasm faded throughout the day as the ISM Services PMI fell to a near two-year low, and the ADP private-sector jobs report was the weakest since September 2017, with declines in small business and goods producing employment. This did not keep the NASDAQ Composite from closing with a golden cross as the index’s 50-day moving average crossed above the 200-day average. The 10-year Treasury yield rose to 2.52%, four basis points higher on the day and 16 basis points higher than the low set in late March. Stocks closed mixed on Thursday following news that President Trump and Chinese officials were prepared to meet in Washington to work on resolving the continuing trade dispute. The NASDAQ was the only major index to finish slightly down 0.05% while the S&P 500 closed up 0.21% followed by the Dow Jones Industrial Average up 0.64%. Stocks closed the week with gains following a favorable Jobs Report for March. The Labor Department reported nonfarm payrolls increased by 196,000, ahead of expectations. The nation’s unemployment rate remained at 3.8%.