The age of disruption has also brought on the age of mixed trading. Yesterday tech and the NASDAQ shined as it made big gains while the Dow remained fairly flat. Today was the opposite as the NASDAQ decided to take a vacation day and start the weekend early, while the Dow plowed ahead. The Dow gained 136 points to finish off the week and closed at 25,462.
As mentioned yesterday, while trade tariffs have tempered the markets the economy as a whole has kept stocks moving upward. Today, the Labor department released July’s job info and it added to the narrative that the U.S. economy is strong. For the 94th consecutive month the U.S. job market grew as July added 157,000 more jobs and unemployment came down another 0.1% to 3.9%. Wages are increasing and on average employees are making 2.7% more than they did this time last year. Logging has been the industry with the highest percentage of job increases, while the sporting goods/hobby/book/music store industry has lost the most jobs. That industry has seen a 5.3% decrease in jobs, and the word on the street is that buying books and stuff online is increasing.
Tariffs against China have also led to currency manipulation and a yuan that has decreased at least 8% in the last few months. Today, CNBC had an article that explained how this decrease in the yuan could affect the Seattle housing market. According to the article, Seattle metro’s home prices have risen 45% since August 2016 after Vancouver, Canada put a 25% tax on international homebuyers which sent many of the Chinese buyers away from Vancouver and down to Seattle. But, with the yuan losing value now, it becomes more expensive for Chinese investors to buy property due to a less favorable exchange rate. In addition, China is also increasing restrictions on getting money out of the country which also limits the amount of available capital for the Seattle housing market. As a result, Seattle is seeing more homes on the market but fewer sales pending. You can read the full article by clicking here.