Stock Market Generally Positive Trend despite some Political tensions

Yesterday, stocks gained on a strong upward revision due to G2 GDP growth and consumer spending.

Today, stocks can build upon those gains thanks to positive data from China

Fresh personal income and spending data, due today for July, could also serve to reinforce confidence.

Pending home sales data, a forward indicator, might help allay concerns about recent softness in home sales.

We remain mindful of seasonal softness and risk relative to the Korean Peninsula problem.

On Wednesday, Equities broadly gained ground thanks to upgrade to Q2 GDP growth.

The good news was good enough to outweigh the risks relative to North Korea.

On Thursday, with important data due from China's manufacturing sector and US consumer spending, stocks have a chance to build upon Wednesday's gains. I expect stock gains this year and the next, there are some political tensions (e.g. north Korea) to beware of.

The SPDR S&P 500 marked a 0.5% gain Wednesday thanks to the good news on America's economy.

Security	08-31-17
SPDR S&P 500 (NYSE: SPY)	0.30%
SPDR Dow Jones (NYSE: DIA)	0.20%
PowerShares QQQ (NASDAQ: QQQ)	0.30%
iShares Russell 2000 (NYSE: IWM)	0.40%
Vanguard Total Stock Market (NYSE: VTI)	NA
iPath S&P 500 VIX (NYSE: VXX)	-0.90%
PowerShares DB US Dollar Bull (NYSE: UUP)	Unchanged
PIMCO Active Bond (NYSE: BOND)	NA
United States Oil (NYSE: USO)	0.40%
SPDR Gold Trust (NYSE: GLD)	-0.04%

Thursday morning offered good news too, and provided stocks another stepping stone to higher ground. Official data from China's National Bureau of Statistics showed the nation's Manufacturing Purchasing Managers Index (PMI) gained to 51.7 in August, beating the economists consensus for 51.3. This month, economists see personal income also rising 0.4%. Yet, the Fed's favored inflation gauge, the Core PCE Price Index, is only see increasing 0.1% in July.

Another key data point Thursday is the Pending Home Sales Index release for July. Pending Home Sales are a lead indicator for existing home sales, or the bulk of the real estate market.

SPDR 500 5 days

Russell2000 5 days

 

VIX 5 days

In conclusion, stocks have a chance to build upon Wednesday's strength again on Thursday. Positive manufacturing data from China should serve US equities because of the indication for US demand for goods. Also, the Personal Income and Spending data could show further improvement in consumer spending, as was indicated in yesterday's GDP revision. Personal income gains are expected as well and could serve stocks.

Major asset classes Performance Review

Bullish tailwind for most of the major asset classes.

Nearly every corner of the global markets gained ground in August, led once again by stocks in emerging markets.

The only losers were: US junk bonds and real estate investment trusts (REITS), which posted fractional declines. Otherwise, performance was broadly positive.