The Strength of the Market is: Strong

Last week, President Trump reportedly pushed for greater tariffs on the European Union and is demanding a minimum tariff of between 15% and 20% in any deal with Europe. The European Union is attempting to reach a trade deal with the U.S. ahead of the August 1st deadline, when President Trump has vowed to begin implementing 30% tariffs on the European Union. Although, investor fears on tariff-induced inflation is down to its lowest level since February. For the week, the S&P 500 gained 0.6% and the Nasdaq rose 1.5%. The Dow Jones was slightly lower.

Economic reports from last week came back mostly positive:

•Inflation (Consumer) - in-line with expectation

•Inflation (Producer) - lower than expectation

•Manufacturing (New York) - higher than expectation

•Manufacturing (Philadelphia) - higher than expectation

•Retail Sales - higher than expectation

•Homebuilder Sentiment - in-line with expectation

•New Residential Construction - higher than expectation

•Consumer Sentiment - higher than expectation

•Jobless Claims - lower than expectation

This week, investors will look for guidance from economic reports like Manufacturing, Housing, Consumer Sentiment and Jobless Claims.