Significant geopolitical updates helped propel domestic equity markets to a third straight week of gains and within 1.6% of its all time high, measured by the S&P 500 index. Prime Minister of the U.K., Theresa May, was able to convince EU leaders to grant the country an extension to October 31st to leave the trading bloc. The U.S. and China trade war clouds continue to clear as the two countries have “pretty much agreed to enforcement mechanisms” for a trade deal; however, timing of any official agreement being signed is still unknown. Uber Technologies publicly filed for its IPO seeking to raise $10 billion is the largest expected tech IPO this year.
First quarter earnings kicked off this week with major U.S. banks, JP Morgan, Wells Fargo and PNC all beating expectations and leading financials higher. Disney unveiled details to its much anticipated streaming service at an investor meeting this week which helped shares surge greater than 10% to a new all time high. Broad market indices on the international developed and emerging market fronts remain well within the 2019 YTD climb. Credit risky fixed income investments returned better than the aggregate bond market this week at slight gains versus a modest decline; although each remains higher this year.
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