WASHINGTON. Just two days from now, America celebrates the anniversary of this country’s very first Independence Day. Barbecues, family get-togethers, and trips to crowded beaches will, as always, be on tap for a great many of our fellow citizens. But what won’t be on tap is trading action on Wall Street. Which is why we’re here to give you the lowdown on this year’s Independence Day holiday schedule for stock and bond investors.
Market action will continue, of course, on other markets around the world, if paying inflated commissions to trade there is your thing. Otherwise, all active traders and investors will have the day off on July 4.
In addition to the Independence Day holiday, trading gets cut off a bit short tomorrow, July 3. I’m not sure exactly why that is, but it’s likely involved with the fact that July 4 this year falls on a Thursday. Which makes it on of the few national holidays that didn’t get shifted to a Monday when Congress juggled the “holiday laws” a few decades ago, likely to accommodate retailers who love long weekends.
BTW, for those not too familiar with settlement days, a settlement day is the day payment is due for payment of a new opening trade. Likewise, it’s also the day when the proceeds of a sell order are available to withdraw from your account if you wish.
These operations tend to be invisible these days, as the money just moves in and out of your accounts money-market fund on schedule.
There are exceptions to these rules, of course, as in the case of “purchased” money market funds, which can settle next day. Details vary, however, so check with your brokerage.
At any rate, here’s the trading and settlement day schedule that begins tomorrow under the influence of Independence Day.
U.S. Trading and Settlement Schedule for July 4, 2019
Wednesday, July 3, 2019
All U.S. markets, except for fixed income markets, i.e., bonds, will close early at 1:00 p.m. ET. Fixed Income markets will close early at 2:00 p.m. ET.
Pre-market trading will take place as usual prior to the morning market open. After-hours trading will begin at 1:05 p.m. ET and will end at 5:00 p.m. ET.
For most brokerage customers, moneys received (cash, checks, transfers, etc.) after cut-off time won’t be processed until Friday, July 5, 2019. Check with your broker for details.
Thursday, July 4, 2019
All U.S. markets will be closed in observance of Independence Day.
There will be no Pre-market or After-hours trading sessions.
Holiday and holiday-influenced settlement days
|Tuesday, July 2, 2019||Friday, July 5, 2019|
|Wednesday, July 3, 2019||Monday, July 8, 2019|
Since July 4 is not Independence Day for Canada, Canadian markets will be open as usual Thursday, July 4, 2019.
As for other world markets, well, check with your brokerage firm. But most of them should be open if that’s your thing.
Due to the holiday schedule, stocks and bonds will likely move in sometimes bizarre fits and starts for the rest of this trading week and next Monday (July 8, 2019) as well. So if you’re trading over the next few days, be aware of Mr. Market’s traditional holiday head fakes. Market trends have been up lately. But with Iran, China, Antifa head-bashing and other hot headlines providing risk, you never know, so be careful. Better yet, forget Mr. Market for a few days and take some time off.
That’s all on this topic for now. And may you and your families have an enjoyable day celebrating sports, barbecues, fireworks, and, above all, our precious freedoms – including our Bill of Rights – this July 4, 2019.
— Headline image: American children of many ethnic backgrounds celebrate noisily in a surprisingly forward-looking
1902 Puck cartoon.
Caption: Uncle Sam tells Lady Peace: “It’s all right. There’s no fighting. The noise you hear is just my family celebrating!”
(Image from the pages of a vintage issue of Puck magazine, via Wikipedia entry on Independence Day.
Image now in the public domain.)