Back to top

Image: Bigstock

Strong Trading Week Ends on Mixed Income, Spending Data

Read MoreHide Full Article

Friday, August 30, 2019

On this final trading day before the long Labor Day weekend, we expect low volumes overall on what looks to be the strongest trading week since June. Mixed data on income and spending from July fills out the end of the week.

Personal Income from last month came in beneath expectations at 0.1% (expectations were for 0.3%), well beneath the 0.5% reported in the month of June. These figures have been creeping up nicely over the past several months, but we will keep an eye on whether this slowdown is temporary or part of something significant.

Consumer Spending was right in-line with estimates: +0.6% versus 0.6% expected. This doubles the 0.3% reported for June, though again, we’d like to see data from a wider vantage point before concluding new spending trends overall. The consumer has, however, been a major catalyst in economic growth — in just about every metric reported this summer, the consumer has done his or her part in pushing numbers to higher levels.

Speaking of higher levels, Core Inflation numbers were also reported this morning, with the headline reaching +0.2%. This represents an in-line read from estimates, also at 0.2%, and consistent with the 0.2% reported in June. Here we see a continuation of inflation metrics upticking very modestly — a condition we’ve grown accustomed to over the past several months, when many analysts were expecting overall inflation to begin picking up its pace.

Next week will be holiday-shortened, but will have no shortage of important economic data, concluding with a monthly jobs report from the U.S. Bureau of Labor Statistics a week from today. This will help the Fed make its decision whether to once again lower interest rates in the weeks to follow.

Mark Vickery
Senior Editor

Questions or comments about this article and/or its author? Click here>>

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies

See their latest picks free >>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

The full Ahead Of Wall Street article

SPDR-DJ IND AVG (DIA) - free report >>

INVESCO-QQQ TS (QQQ) - free report >>

SPDR-SP 500 TR (SPY) - free report >>