Trade talks threw a curve ball at markets today when the White House said it was considering limiting investment by companies into China. The unexpected development, if true, puts pressure on China but also changes the equation by expanding the range of possibilities that could affect trade. Prior to the news coming out the Dow was up over 100 points but then quickly fell to zero and then went negative to close with a 70 point loss at 26,820. Trading volume was higher. For the week the Dow posted a net loss of roughly 110 points which is not bad considering all the political theater this week.
Boise Idaho based Micron Technology fell hard after issuing its earnings report. The company beat guru expectations but issued lower forward guidance and cited trade issues and Huawei as sources of concern. Shares fell 9% and had the effect of pulling other chips stocks lower as well.
US economic data continues to show softening growth characteristics. The US Q2 GDP final number came in at 2% growth which was unchanged from the prior estimate. The latest personal income reading was 0.4% which, while good was a tad shy of estimates due to interest income which fell and partially offset wage growth. US PMI figures moved up slightly to a reading of 51 and consumer confidence pulled back a bit. The economic reports are mixed and show modest growth in the US.
We have a Boy Scout Eagle court on honor this weekend for two young men who have been with troop 100 since 2012. Both of these kids have had many leadership positions and have hiked, biked and canoed in Washington, Idaho, British Columbia and Switzerland during their tenure with the troop. They have been hungry, tired, wet and cold but they stuck with it and succeeded. I hope to have pictures next week.