Our ViewAfter June’s strong job report, investors are feeling pretty good about the U.S. economy; however, it’s important not to let your perspective be swayed too much by a single data point. While a healthy labor market supports continued economic growth and market upside, we expect additional volatility in the weeks to come. We still face a turbulent presidential election, corporate earnings season, Britain’s EU exit, and other market headwinds. Enjoy the rally, but stay focused on your long-term goals and don’t be surprised if markets pull back again.
ECONOMIC CALENDAR:Tuesday: JOLTS Wednesday: Import and Export Prices, EIA Petroleum Status Report, Beige Book, Treasury Budget Thursday: Jobless Claims, PPI-FD Friday: Consumer Price Index, Retail Sales, Empire State Manufacturing Survey, Industrial Production, Business Inventories, Consumer Sentiment
- Factory orders shrink. New orders for manufactured goods fell in May, but unfilled orders and falling business inventories hold promise for future demand.
- China’s inflation drops. Last month, a measure of consumer inflation in China grew at its slowest pace since January on persistently weak demand. More government stimulus is likely to prop up the ailing economy.
- Weekly jobless claims fall. The number of Americans claiming new unemployment benefits fell by 16,000 last week, adding more evidence that the labor market is on solid ground after May’s miss.
- Service sector expands to seven-month high. An indicator measuring service sector activity, a component of the economy that accounts for 80% of economic growth, rose in June, suggesting continued strength.
Quote Of The Week
“Winning isn’t everything, but wanting to win is.” – Vince Lombardi