Market Commentary, 08/14/17
The stock market: Last month North Korea successfully tested an intercontinental ballistic missile that appeared capable of hitting Alaska and Hawaii and a few weeks later it tested a missile that may be capable of hitting California. Last Tuesday (08/08/17), President Trump told reporters, “North Korea best not make any more threats to the United States. They will be met with fire and fury like the world has never seen.” Then, in the evening last Thursday, which was very early Thursday morning in New York, North Korea announced detailed plans to launch missiles aimed at waters just off the coast of Guam.
The stock market (Dow Jones average) responded by declining 205 points on Thursday (08/10/17) and 234 points from Monday through Thursday. The S&P 500 dropped 1.4% and the Nasdaq fell 1.5% from Monday through Thursday. On Friday, all three indices closed slightly up and today’s performance seems to indicate a ho-hum attitude toward North Korea’s delusions of grandeur; the Dow closed up 135 (+0.62%); the S&P up 25 (+1.00%) and the Nasdaq up 84 (+1.34%).
Jobs and unemployment: Initial claims for US unemployment rose slightly to 244,000 last week, but remained well below the healthy jobs market threshold (300,000) … adjusted for population growth, unemployment claims are at their lowest levels ever.
This week: Internationally, we’re interested in what develops with North Korea. Domestically, we’re interested in this week’s reports on retail sales, housing starts, and industrial production.
Jeremiah Patterson, CFP®
Copelin Financial Advisors
514 Brooks Street
Sugar Land, TX 77478
Phone: 281 240-2902
Fax: 281 240-2856
Securities offered through ProEquities, Inc., a Registered Broker-Dealer and Member FINRA & SIPC Advisory Services offered through Harvest Investment Services, LLC., a Registered Investment Advisor Copelin Financial Advisors, Inc and Harvest Investment Services, LLC are independent of ProEquities, Inc.
Source – W E Sherman & Co., LLC