President Donald Trump holds a campaign rally in Dallas, October 17, 2019.
Jonathan Ernst | Reuters
Progress in trade talks and a steady, but accomodative Fed policy[1] have eased the way for the stock market's rally to new highs, and both will be in the forefront when President Donald Trump[2] and Jerome Powell[3] speak at separate events in the week ahead.
Against a backdrop of a stabilizing global economy, stocks have hit new highs and bond yields have pushed higher,[4] particularly in the past week with a 23 basis point surge in the 10-year[5] Treasury yield. Yields move opposite price, and the 10-year rose to end the week at 1.94%, its highest closing level since Aug. 1, t[6]he day Trump threatened another round of tariffs on China.
Trump speaks to the Economic Club of New York during a Tuesday luncheon, and investors are hoping for clarity on a possible trade deal. The Fed chairman speaks Wednesday to the Congressional Joint Economic Committee, and he also appears before the House Budget Committee Thursday.
There are a few key economic reports, including CPI on Wednesday and retail sales and industrial production on Friday. The Empire State manufacturing survey Friday could provide a fresh look at the manufacturing sector in the New York region. Just a few major earnings are expected in the week ahead, including Cisco[7] Wednesday and Walmart[8] and NVIDIA[9] on Thursday.
The House of Representatives also holds impeachment hearings before the public for the first time in the coming week, but the markets have so far ignored...