The US economy added 157,000 jobs in July according to the US Department of Labor. The unemployment rate stands at 3.9%.

Global manufacturing activity is slowing. Markit's global purchasing managers' index slipped to a still expansionary 52.7. Eurozone activity held steady. China's reading slowed for the second straight month, which reflects some impact from ongoing trade disputes. (LPL)
The official ISM Manufacturing Index in the U.S. came in at 58.1 in July, adding to evidence that tariffs and risk of escalation are beginning to impact US manufacturers. However, this reading is still quite strong. (LPL)

U.S. and EM still look like better bargains than Europe. The S&P 500 Index is trading at a reasonable 16.5x earnings estimates for the next four quarters, 2% above the post-1995 average. The MSCI Emerging Markets Index, at 11.5x, is trading 3% below its average for this period. Europe, at 14x, is trading 12% above its 23-year average which, given that market's relatively more defensive sector mix, is expensive.

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With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.