Earnings

Over one-third of the S&P 500 companies are reporting earnings this week. This includes both large tech and large oil companies. This could possibly be the biggest week of the quarter in regards to earnings. Last week earnings were very strong but trade war talks seemed to overpower the news. On Wednesday, President Trump is meeting with the European commissioner, Jean-Claude Juncker, to try and work out a deal.

GDP

On Friday we have a very important GDP report coming out. The first quarter was very slow, coming in around 2%. We expect GDP to pick up this quarter to anywhere around 3.5% to 4%. We have seen much better consumer spending and business investments in the economy.

Drug Imports

The Trump administration is exploring prescription drug imports to counter price hikes. If we start to get a major increase in drug prices they are looking to counter that by possibly importing prescription drugs from places that have a high level of protocol to make them such as Canada, the U.K., France, and even Japan. Even though this hasn’t been approved, the discussion alone has created a chilling effect in regards to keeping drug prices down. Three major manufacturers last week said they would not raise prices for the remainder of the year. This is market impactful because it gives the consumer more money to spend.

The Fed & Rates

President Trump has started to openly call out the Federal Reserve in terms of raising interest rates. In our modern economy, this is one of the first times we have seen a president do this. In the past there has been an “unwritten rule” to not comment on these items with the Fed, even anonymously. Jerome Powell has interestingly pushed back, making this something to certainly keep an eye on.

 

Bobby Norman, CFP®, AIF®
Senior Vice President
Wealth Consultant
Email Bobby Norman here

Ashley Page, JD, MBA
Senior Vice President
Wealth Consultant
Email Ashley Page here

 

Fi Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. Fi Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

Economic forecasts set forth in this presentation may not develop as predicted.

No strategy can ensure success or protect against a loss.
Stock investing involves risk including potential loss of principal.

Securities and advisory services offered through LPL Financial, Member FINRA/SIPC and a registered investment advisor.

#290 Undercurrents in the Market #288 Three Financial Forces