|Day's Range||80.99 - 82.30|
Mixed results from data releases and corporate earnings have resulted in cautious optimism if you're investing in ETFs, but the waters have muddied.
If you don't own these up-and-coming small companies in your investment portfolio yet, you could be missing out on a big opportunity for market-beating returns.
Last week's announcement of more U.S. tariffs on Chinese goods may have undermined the prospects for small-cap stocks to rebound this year, even after a brief respite from the Federal Reserve's recent interest-rate cut. Just a day after the Fed cut interest rates for the first time in more than a decade, President Donald Trump vowed on Aug. 1 to impose 10% tariffs on an additional $300 billion of Chinese goods beginning on Sept. 1.
The Federal Reserve is expected to cut interest rates next week even though the US economy is doing pretty well. Here's former White House Director of Economic Policy Todd Buchholz take on why.
There seems little doubt that if inflation expectations resume a trend lower, then the need for an aggressive response from the Federal Reserve increases and this will have a greater effect on rate cut expectations, bond yields, the USD, equities and gold.
A truce in the trade war between the United States and China that pushed large-cap stocks to new record highs Monday does not appear to be enough to buoy the shares of small U.S. companies that are struggling under the weight of higher tariff costs. Lower margins and less pricing power are preventing small companies from either passing on or weathering the effects of higher trade tariffs to the same degree as large caps, effectively putting a ceiling on their growth prospects, fund managers and analysts say. For the year to date, the benchmark Russell 2000 index of small companies is up nearly 17%, yet remains more than 8% below the record highs it reached in August 2018.
THE TRADER Bad news poured down this past week, yet the market kept on dancing in the rain. There was bad geopolitical news as the U.S. blamed Iran for attacking two tankers carrying petroleum products.
With the exception of a two-month period in January and February, the Russell 2000 index has been declining steadily versus the S&P 500.
Can people please stop talking complete, unmitigated claptrap on the subject of President Donald Trump, Mexican tariffs and the U.S. economy? The panic over the last few days about possible Mexican tariffs is even more ridiculous than the panic we had last month about the China tariffs — and that was bad enough. The S&P 500 is now higher than it was just before Trump shook his little fist at the Mexicans.
The S&P 500 is close to breaching its 200-day moving average. That would trigger a closely watched sell signal, potentially setting off a broader alarm, selling pressure, and further falls.
One of the highest trading-volume days on U.S. stock markets each year falls in late June, when FTSE Russell rebalances its closely followed collection of U.S. equity indexes
As investors try to cope with the ongoing U.S.-China trade war, BofA-Merrill Lynch is telling investors to resist the temptation to invest in small cap stocks. Jill Carey Hall, the firm's small cap expert, warns the widely held perception they're insulated from the effects is ill-conceived — adding fundamentals in the space remain challenged. "Small cap earnings have been coming in in-line with expectations.