Wall Street indices started higher the day with the Nasdaq on positive foot adding 0.06% higher at 8,208.02. The Dow Jones Industrial Average currently is trading 0.14% higher at 27,220, while the S&P 500 trading 0.09% at 2,988.5 after United States Redbook Index (year over year) came in at 4.9% for July 19, versus 4.7%. United States Redbook Index (month over month) up to 1.1% in July from previous 1%, and the United States Housing Price Index (month over month) came in at 0.1% below expectations of 0.3% in May.
Trade tensions between the China and US showing some signs of progress as President Trump looks to ease the ban on Huawei. China will proceed with the purchases of US soybeans, if the USA ease the restrictions on Huawei. U.S. negotiators will likely visit China next week for their first face-to-face trade talks with Chinese officials since the G20 meeting. Traders’ attention focused on the Fed policy meeting next week as hopes of a 50 bp cut to interest rates began to fade.
Time to Sell?
I expect slower economic growth in the USA and internationally, as trade and geopolitical tensions increase, but the upcoming interest rate cuts from major central banks will act supportive for Nasdaq and the other equity indices.