FYI: Following the Ethiopian Airlines crash on Sunday, Boeing investors have lost approximately $26.6 billion in market capitalization over the first two trading days this week, according to CNBC. Shares have drawn down by more than 10% over the same period. Sunday’s disaster comes only five months after the Lion Air crash in Indonesia.
Meanwhile, market investors across the globe are reacting to a fresh round of economic data. Shares have risen in each of the three trading days of this week as faith in U.S. economic growth and the patient approach to interest-rate hikes have caused stocks to rebound from December lows. The S&P is now up 12% for the year and within 4.5% of its all-time record in September, says The Wall Street Journal.
The Commerce Department’s report Wednesday showed durable-goods orders rose in January by about 0.4% from the prior month. Economists polled by MarketWatch predicted a 0.1% decrease for January. Business investment also rose in January, after falling off during the previous two months, states MarketWatch. Core capital orders rose by 0.8% in January. The Commerce Department also released the cost of wholesale goods, which increased by 0.1% in February, and U.S. construction spending, which increased around 1.3% in January, the largest increase since April 2018.
These new economic reports show some signs of stability, and investors don’t appear to be as worried as they were last quarter. The “doom and gloom” rhetoric has subsided for now. However, economic slowdown across the globe and tensions caused by Brexit and the trade wars continue to darken the market outlook. After Theresa May failed to secure parliamentary approval for her proposed Brexit deal, British lawmakers are expected to vote again today for what would likely be a delay of the country’s departure from the European Union, the Journal reports.
Economists around the globe are diligently watching key events and dates to piece together the outlook of 2019.
Regards,
Ted
http://investwithanedge.com/weekly-edge-new-round-of-economic-data-inches-stocks-higher
