The Strength of the Market is: Strong

Last week, stocks rose as employment data came in better-than-expected, easing concern that the economy is facing an imminent slowdown. The unemployment rate was unchanged at 4.2%. There is still some uncertainty about what the inflation impacts are going to be from the tariffs, which may start showing up more in the summer. President Trump has offered some hope on trade, announcing that talks between the U.S. and China will take place this week in London. The S&P 500 is now only about 2% below its February high. Last week, stocks posted notable gains - the S&P 500 was up 1.5%, the Dow Jones advanced 1.2% and the Nasdaq jumped 2.2%.

Economic reports from last week came back mixed:

•Construction Spending - lower than expectation

•Job Openings - higher than expectation

•Vehicle Sales - lower than expectation

•Employment (Private) - lower than expectation

•Employment (Total) - higher than expectation

•Labor Productivity - lower than expectation

•Consumer Credit - higher than expectation

•Jobless Claims - higher than expectation

This week, investors will look for guidance from economic reports like Small Business Optimism, Inflation, Consumer Sentiment and Jobless Claims.