The Morning View from the West End: July 6, 2018

  • July 6, 2018

BY: MARSHALL BARTLETT
Senior Vice President / Portfolio Manager
(615) 591-0611   mbartlett@argenttrust.com

The economy added 213,000 jobs in June, slightly above forecasts and the unemployment rate moved up two tenths to 4.0%. Average hourly earnings increased just 0.2% in June and has increased 2.7% on an annual basis. A decent headline jobs number with people entering the labor force, which pushed the unemployment rate higher. Wage growth remains elusive and below the historical average. The Federal Reserve will need to consider a firm, but not exceptionally tight, labor market as it moves ahead with planned interest rate increases.

Separately, $34 billion of tariffs went into place on Chinese goods last night, to which China immediately responded with tariffs of an equal amount on U.S. goods. Should trade tensions continue to escalate, it could impact economic growth and policy going forward. In all, equity futures are mixed and yields are lower heading into the market open.

This information has been prepared by Argent Trust to highlight issues which may be of interest to the recipient and is not intended as legal, investment or tax advice. You are urged to seek legal, tax and accounting counsel for your particular situation before acting on topics discussed here. At Argent Trust, we assist our clients in managing and enhancing their wealth. Please call us at 615.591.0044 with questions or to schedule a meeting. © 2018 Argent Financial.