Trade talk moved the markets again this week. The week started over trade concerns amid comments by the President that trade issues may be unsettled well into next year. By mid-week the tone had changed to more optimistic comments. And the markets were lurching lower and higher each day depending on the trade news. WSJ It is worth repeating from our previous commentary that the U.S. economy is 70% based on the consumer. If consumer spending is solid, the U.S. economy tends to act accordingly. It's not that trade isn't important, but the U.S. is not an export-dependent economy. Trade issues have an outsized impact on agricultural and manufacturing with some disruption to technology supply chains. But unless the trade issues dent consumer confidence and spending, the effect on the overall U.S. economy shouldn't be significant. The job growth numbers being released Friday morning, are a much more significant news item to watch. So, for the most part, the up and down caused by trade speculation can be ignored.
With all the snow that arrived this week, it certainly feels like the Holidays in the Northeast. Enjoy the winter wonderland with a hot cup of cocoa while reading The Friday Buzz!
- ADP Reports Smaller Job Growth: The ADP National Employment Report showed private jobs growing only 67,000 in November when 150,000 was expected. The Bureau of Labor Statistics (BLS) will be releasing their overall jobs report Friday morning. Sometimes the ADP report is off by a large number compared to the BLS. Nonetheless, the lower than expected ADP number will make the BLS report that much more important. ADP CNBC