In light of a busier than usual weekend, this week’s “Week in Review” segment will need to be a bit abbreviated. But looking at last week’s trading, the Dow Industrials ended the week on a sour note losing nearly 200 points. Economic turmoil in Turkey was cited as the main culprit as the country’s lira tumbled 14% sending the iShares Emerging Markets ETF lower by 2.3%. The country’s currency has lost 45% of its value against the U.S. dollar in the past 52 weeks. For the five trading sessions, the Dow lost 0.59% or 148 points, while the S&P was lower by about half that amount on a percentage basis and the Nasdaq Composite index gained 0.35%. Shares of consumer services companies did well, but were offset by weakness in the consumer goods segment.
The Department of Labor said on Friday that consumer prices rose 2.9% in the past year, the highest increase since late 2011. While viewed as a positive reading of the U.S. economy, the Fed will be taking the potential inflationary news seriously. As for earnings, this week we will hear from ag giant Deere & Co. reporting fiscal third quarter earnings on Friday at an estimated $2.74 per share vs. last year’s $1.97. A bellwether tariff target, it will be important to see what management has to say about the U.S. agricultural situation.
Here is the answer to last week’s trivia question: Which company posted the largest one-day loss in market value by any company in U.S. stock market history? Intel, Exxon Mobil, Facebook or Berkshire Hathaway. Answer: Facebook. The social media giant’s market capitalization plummeted by $119 billion as its stock price retreated by 19 percent on July 26, 2018. No company in the history of the U.S. stock market has ever lost $100 billion in market value in just one day.
Today’s Trivia Question: GEICO is an acronym for the legal name of this giant property and casualty insurance company. The “G” stands for: Government, General, Goodwin or Georgia?