The economy is still growing. It looks like we can push recession fears back at least another two quarters. That is, if you define recession as a fall in GDP over two successive quarters.
Equities moved higher this week as earnings take center stage. The S&P 500 advanced 0.5% and outpaced flat returns on the Bloomberg Barclays Aggregate Bond Index. The dollar has been soft as of late, which is giving a tailwind to higher beta assets and foreign equities.
This week has given us positive moves in equity markets. The S&P 500 is up 1.77%. This strong move comes as we see a slight sliver of light in the tunnel that is the Sino-American trade negotiations.
Equities bounced back this week with domestic large caps outperforming small caps. The S&P 500 was up 1.2%, whereas small caps were flat. Bond yields inched higher resulting in little change in the Bloomberg Barclays Aggregate Bond Index.
The markets are not a fan of the global manufacturing numbers coming out. This week’s returns may indicate equity markets actively don’t like the manufacturing numbers. The S&P 500 was down 2.5% for the week as of yesterday.