The Strength of the Market is: Strong

The S&P 500 and Nasdaq both hit fresh records on Friday. Stocks have risen to new highs with a sharp turnaround from the lows seen in April during the height of trade policy tensions. Since April, investors have been trying to navigate an ever-changing global trade landscape - last week alone, 1.) China and the U.S. were reported to be finalizing a trade deal, 2.) the trade talks between Canada and the U.S. have been terminated and 3.) the Trump administration stated that it expects to reach deals with 10 major trading partners imminently. Despite the Israel-Iran conflict, concerns over a growing U.S. federal deficit with increased borrowing costs and the ongoing tariff tensions, the S&P 500 is up nearly 5% for the year.

Economic reports from last week came back mixed:

•Existing Home Sales - higher than expectation

•New Home Sales - lower than expectation

•Pending Home Sales - higher than expectation

•Consumer Confidence - lower than expectation

•Consumer Sentiment - higher than expectation

•Manufacturing (Richmond) - in-line with expectation

•Gross Domestic Product - lower than expectation

•Personal Income - lower than expectation

•Jobless Claims - lower than expectation

This week, investors will look for guidance from economic reports like Manufacturing, Job Openings, Construction Spending, Vehicle Sales, Employment and Jobless Claims.