Calm could be the best way to describe the markets over the last week. The previous week’s trading sessions were marked by surges due, in part, to the potential for a U.S./China trade deal. That optimism carried forward into this week, with traders bidding up stocks to new record highs. However, without a concrete deal in place, the markets were relatively quiet. The solemn Veterans Day holiday on Monday also contributed to the lack of volume.
Adding to the general lackadaisical feeling on the street was the continued proliferation of mixed data. As we’ve seen in previous weeks, economic data has been increasingly mixed. This week’s wide variety of economic readings was no different. Worries about the economy were semi-quelled by Fed Chair Jerome Powell’s latest speech to Congress, in which he implied the Fed was done cutting rates for a bit and there was no need to raise them anytime soon.
Elsewhere, earnings season has started to slow. The number of firms reporting this week dropped significantly. And again, those that did report, showed mixed messages. While many firms beat on EPS, guidance remains a driving factor in terms of gains/losses for traders.
In the end, the slow week proved to be a decent one for traders. The major indices continued to march higher – albeit slowly –throughout the week.
Be sure to check out our previous Wrap here, when trade drove the markets higher.
