US stocks had their five week winning streak snapped driven by trade concerns and the plunge of the Turkish Lira. Worries arose that the country would not be able to repay its debts and its troubles could ripple across emerging markets. The S&P 500 eased 0.2% and the Dow dropped 0.6% for the week. Internationally, Japan, sank 1.0% and Europe fell 0.8% for the week. Emerging markets dropped 2.3% over the week. The yield on the 10-year Treasury fell as investors sought safe havens ending the week at 2.86%. Article
With the finalization of an additional $16 billion in tariffs of Chinese goods starting August 23rd it will bring the total amount of Chinese goods covered by US tariffs to $50 billion.
Economists have raised their expectations for growth for 2018 to 3.0%, but see growth slowing beyond this year.
The CPI rose 2.9% over the past year, the fastest pace since 2011. Core price rose 2.4%, the biggest gain since 2008. The rise in prices seen over the last year almost completely covers the gains in wages.
Elon Musk tweeted he is considering taking the firm private valuing the firm over $70 billion. The statement sent shares 11% higher. Article
Rite Aid and Alberstons called off their $24 billion merger due to investors’ protests.
With 91% of firms in the S&P 500 having reported earnings, it is on pace to post the second fastest pace of profit growth since the third quarter of 2010.