US stocks powered ahead, driven by technology companies. International stocks remained flat as the dollar strengthened and trade talks returned to the headlines. The US and Mexico agreed in principle to a trade agreement to replace NAFTA, but there are significant hurdles to make it law and Canada is still in negotiation.

Weekly Returns

S&P 500: 2,901 (+0.9%)
FTSE All-World ex-US (VEU): (-0.1%)
US 10 Year Treasury Yield: 2.86% (+0.04%)
Gold: $1,201 (-0.3%)
EUR/USD: $1.160 (-0.2%)

Major Events

  • Monday – Tesla shares fell modestly after CEO Elon Musk said over the weekend that he was abandoning an effort to take the company private.
  • Monday – The US and Mexico agreed to a framework for a new trade pact and President Trump said he would give Canada until the end of the week to join.
  • Tuesday – President Trump accused Google of elevating negative views and news about him in search results.
  • Wednesday – Toyota said it was investing $500 million in Uber in a joint effort to work on self-driving vehicles.
  • Thursday – Merrill Lynch said it would resume charging commissions in retirement accounts after the DOL fiduciary rule was defeated.
  • Friday – The US and Canada missed a deadline to reach a new trade deal but agreed to continue discussions.
  • Friday – Coca-Cola announced it is buying British coffee chain Costa.

    • Our Take

    Apple and Amazon were each up about 5% this week. That doesn’t sound especially noteworthy until you take a step back and consider that these upticks represent over $100 billion of valuation combined. Year to date, the two companies are up roughly 35% and 70%, respectively. Now we’re talking about around $500 billion of added valuation in eight months, or around the entire value of consumer giants Nike, Starbucks, McDonalds and Disney in their long histories combined.

    Apple and Amazon are exciting companies, but there hasn’t been any huge news from either company beyond very solid execution results. Either the market mispriced them too low at the beginning of the year or is mispricing them too highly now. Only time will tell.

    Print Friendly, PDF & Email

    Related Posts