In this week’s recap: stocks move lower as traders again absorb conflicting messages about trade talks; the Federal Reserve shares its October meeting minutes; good news comes from the housing market.

THE WEEK ON WALL STREET

Stocks declined last week as mixed signals emerged about the progress of U.S.-China trade negotiations.

The three major Wall Street benchmarks all took weekly losses. The Dow Jones Industrial Average declined 0.46%; the S&P 500, 0.33%; the Nasdaq Composite, 0.25%. Also pulling back, the MSCI EAFE index, tracking developed stock markets outside the U.S. and Canada, retreated 0.69%.1,2

Nothing Conclusive Regarding Trade

As the market week ended, there was still haziness surrounding the state of U.S.-China trade discussions. Were negotiators on the cusp of a phase-one deal or further away?

Friday, President Trump told reporters that a deal was “very close,” but Chinese President Xi Jinping said that his country could decide to “fight back” against certain terms. Last week, a bill intended to support Hong Kong protesters advanced through Congress, and that development was not taken well in Beijing.3,4

The Fed Assesses the Economy

Federal Reserve officials gathered for their October meeting “generally saw the economic outlook as positive,” according to minutes from the central bank’s October monetary policy meeting released Wednesday. Some of them termed the economy “resilient.”

The minutes also noted that the Fed would wait to assess the impact of its recent interest rate cuts and that any upcoming policy decisions might be data dependent.5

Strength in the Housing Sector

Existing home sales improved 1.9% last month, by the estimation of the National Association of Realtors. Year-over-year, sales were up 4.6% through October, and the median sale price was $270,900, 6.2% above where it was 12 months earlier.

Wednesday, the Census Bureau said that single-family home construction increased for a fifth straight month in October. In addition, the pace of building permits for new homes hit a level unseen since 2007.6,7

What’s Ahead

This will be an abbreviated trading week on Wall Street. U.S. stock and bond markets are closed on Thanksgiving Day (Thursday) and then reopen for a half-day session on Friday.

TIP OF THE WEEK

Looking to save a little money while traveling during the holiday season? See if you can take just a carry-on or one checked bag to cut down on baggage fees.

THE WEEK AHEAD: KEY ECONOMIC DATA

Tuesday: The Census Bureau issues its latest new home sales snapshot, and the Conference Board releases its November Consumer Confidence Index.

Wednesday: October consumer spending numbers appear from the Department of Commerce, and the Bureau of Economic Analysis publishes a new estimate of third-quarter economic expansion.

Source: Econoday, November 22, 2019

The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.

THE WEEK AHEAD: COMPANIES REPORTING EARNINGS

Monday: Agilent (A), Hewlett-Packard (HPE), Palo Alto Networks (PANW)
Tuesday: Analog Devices (ADI), Dell Technologies (DELL), Vmware (VMW)
Wednesday: Deere & Co. (DE)

Source: Zacks.com, November 22, 2019

Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Any investment should be consistent with your objectives, time frame, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.

QUOTE OF THE WEEK

“The bravest thing you can do when you are not brave is to profess courage and act accordingly.” – CORA HARRIS

THE WEEKLY RIDDLE

Two children are born in the same hospital, on the same year, on the same day, and have the same father and mother… but they are not twins. How is this possible?

LAST WEEK’S RIDDLE

I give light by night, but not by day. Wicked I am, but not evil in any way. I mostly wax, but always wane. Except when I’m out, I stay the same. What am I?

ANSWER:

A candle.

Greg R. Solis, AIF®
President and CEO

Bob Medler, CRPC®, CMFC®, AIF®
Wealth Advisor / Investment Analyst

Tiffany Valentine, CFP®
CERTIFIED FINANCIAL PLANNER™
Vice President | Director of Financial Planning

78-075 Main Street
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Office: (760) 771-3339
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E-Mail: greg@soliswealth.com
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E-Mail: tiffany@soliswealth.com
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This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

CITATIONS:

1 – wsj.com/market-data [11/22/19]
2 – quotes.wsj.com/index/XX/990300/historical-prices [11/22/19]
3 – cnbc.com/2019/11/22/dow-futures-amid-us-china-trade-uncertainty.html [11/22/19]
4 – cnbc.com/2019/11/22/hong-kong-rights-bill-unlikely-to-derail-us-china-trade-talks.html [11/22/19]
5 – marketwatch.com/story/fed-minutes-show-worries-about-economy-had-eased-a-bit-2019-11-20 [11/20/19]
6 – inman.com/2019/11/21/existing-home-sales-pick-up-in-october-after-slump-nar/ [11/21/19]
7 – marketwatch.com/story/permits-for-new-home-construction-hits-post-recession-record-high-in-october-2019-11-19 [11/19/19]

CHART CITATIONS:

wsj.com/market-data [11/22/19]
quotes.wsj.com/index/XX/990300/historical-prices [11/22/19]
quotes.wsj.com/index/SPX/historical-prices [11/22/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield [11/22/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldAll [11/22/19]