So where to for Wall Street after Apple Week last week?
The US economy saw a slight slowing in jobs growth in July – 157,000 new positions created, well under the expected 190,000 or so – the jobless rate again eased to 3.9%, but wage growth was stuck at an annual 2.7% for yet another month and some economists reckon the Fed’s expected rate rises might end for a while after the expected rise in late September.
But 59,000 new jobs were added to the reported figures for May and June, which in the end more than offset concerns about the lower than expected figure for July.
But if monthly jobs reports start coming in under forecast on a regular basis, the forecast four rate rises this year and three in 2019 will change.
The trade war with China will continue this week with China threatening to impose new tariffs on $US60 billion of US exports – ranging from small – and medium-sized aircraft and liquefied natural gas to soybean oil and auto parts – after Donald Trump threatened to lift tariffs on $US250 billion of Chinese imports to 25%.
On Friday, the S&P 500 and Dow both rose 0.5%, while the Nasdaq added 0.1%.
For the week, the S&P 500 rose 0.8%, the fifth weekly advance in a row. The Dow was up just 0.1% (despite Apple’s gain) over the past five sessions while the Nasdaq Composite rose 1% for its first weekly gain in three weeks.
Apple shares rose 0.3% on Friday to a record close of $US207.99 to be up 8.9% and become the first company to close a treading week with a market value of a trillion US dollars or more (nearly $US1.002 trillion).
US bond yields eased on Friday afternoon – the yield on the benchmark 10-year US Treasury was down 3.2 basis points at 2.9543%.
Earlier this week, in the lead-up to the Federal Reserve’s as-expected decision to keep interest rates steady, the yield crossed above 3% for the first time since mid-June.
Eurozone shares fell 1.1%, Japanese shares lost 0.8%, Chinese shares fell 5.9% and the Japanese market moved past China’s to become the world’s second most valuable. Australian shares lost 1% last week Iron ore prices rose but oil and metal prices fell. The $US continued to push higher but the Aussie dollar ended just over 74 US cents.
