WEEKLY UPDATE – June 4, 2018
Markets experienced heightened volatility this week, with the S&P 500 rising 0.49% and Dow dropping 0.48%. Meanwhile, the NASDAQ rose 1.62%, as international markets took a small dip, with the MSCI EAFE losing 1.10%.[1,2]
The markets’ highs and lows came from a variety of economic and geopolitical developments. The U.S. jobs report posted solid gains while international trade concerns continued to cause some unease. In this market update, we’ll break down the major stories to help you understand what moved markets.
Impressive Jobs Report
Outstanding nonfarm payroll employment numbers rolled in on Friday, and the data supports a strong U.S. economy. Here is a snapshot of some key numbers: 
- Unemployment dropped to 3.8% – its lowest recording in 18 years.
- Payroll growth jumped to 223,000, far beyond the expected 188,000.
- Average hourly earnings climbed 2.7%; as a result, the Fed will likely raise interest rates two more times in 2018.
Taken together, the data gives investors and analysts a positive outlook. With more people working, consumption could rise, which could increase demand on production and keep people employed. Some analysts believe that this cycle should continue, barring any unforeseen disruptions. Meanwhile, the solid data helped ease market tensions and keep the U.S. dollar up, despite concerns of a potential global trade war.
New International Tariffs
On Tuesday, President Trump said the U.S. would implement a 25% tax on $50 billion worth of products from China, including high-tech investments. This decision seemed to surprise China, as rumors of a trade war had recently calmed.  U.S. and Chinese officials were unable to resolve their dispute over tariffs on Sunday, June 3. 
The Trump administration also announced tariffs on metals from Canada, Mexico, and the European Union – all U.S. allies. In an attempt to reduce our trade deficit, Trump placed a 25% tax on steel and a 10% tax on aluminum. International leaders reacted quickly to the news, claiming they may strike back on U.S. goods like orange juice, motorcycles, bourbon, apples, and other products. 
Next week, we will focus on Tuesday’s job openings and Wednesday’s international trade reports. Other indicators like jobless claims and factory orders will help balance out a relatively quiet week for economic data.  In addition, we will continue to track developments on trade negotiations and the potential summit between President Trump and North Korean leader Kim Jong-un. 
If you have questions about how any of this information may affect you, please contact us. We are happy to help you.
- 1 cup (2 sticks) unsalted butter, plus more for pan
- 8 ounces bittersweet chocolate, chopped
- 1¼ cup sugar
- 6 large eggs
- 1 teaspoon pure almond extract
- 1 cup unsweetened cocoa powder, plus more for dusting
- Whipped cream, for serving
- Heat the oven to 350°F. Lightly grease and lay parchment in 9-inch springform pan.
- Melt butter and chocolate in medium saucepan on medium-low, stirring until it is combined.
- Cool slightly after removing from heat, 5 minutes.
- Mix in sugar and combine.
- Mix in eggs, 1 at a time.
- Add almond extract and cocoa powder, and mix until smooth.
- Put batter in the prepared pan. Bake the mix until it is set in the center, 25-28 minutes.
- Cool the cake in the pan on a wire rack, 10 minutes.
- Remove the cake from the pan to let it cool completely.
- Sprinkle cocoa dust and serve with whipped cream.
Recipe adapted from Good Housekeeping
Mastering the Downhill Putt
How do you successfully play those challenging greens, the ones that are hilly or fast?
Picture this: Your ball lands on an elevated portion of a green 12 feet from the hole. You tap the ball with your usual force. The hill takes over, adding momentum, and your ball goes sailing past the hole another 10 feet.
- Do you need to get any vaccines or take along any medicines?
- Will the food and water be safe in the country?
- Will you be able to get medicine during your trip?
- What will you do if you get sick while traveling?
- Are you at risk for certain health conditions?
Material adapted from the U.S. Department of Health and Human Service’s Office of Disease Prevention and Health Promotion 
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