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Economics

Weekly Economic Update

April 13, 2015

(content for this post provided by third party)

 

8622634_l (1)SERVICE SECTOR CONTINUES TO EXPAND

At 56.5, the Institute for Supply Management’s March non-manufacturing index came in 0.4 points beneath its February reading but still indicated healthy expansion for the service industry. While business activity fell by 1.9%, new orders improved 1.1% and new export orders 6.0%. America’s service sector grew for a 62nd straight month.1

COULD THE FED TIGHTEN LATE IN Q2?

Minutes from the Federal Open Market Committee’s March policy meeting stated that “several participants” felt economic data was strong enough to prompt an interest rate increase at its June meeting. (Federal Reserve board officials and regional presidents are all defined by the Fed as “participants.”) Richmond Fed president Jeffrey Lacker reiterated his support for a hike to reporters last week, noting that rates could be reduced again if economic conditions warranted.2

 

OIL PRICES CLIMB 5.1% IN A WEEK

That advance took light sweet crude to a NYMEX close of $51.64 a barrel Friday, and that rise came even with a 6% descent last Wednesday. Gold had a relatively flat week, gaining 0.3% on the COMEX to settle Friday at $1,204.60; silver futures moved south 1.9%, ending the week at $16.38.3,4

STOCKS PUSH HIGHER

Intriguing M&A activity helped the market rally last week. The Nasdaq advanced 2.23% in five days to close at 4,995.98 Friday. The Dow moved north 1.66% to 18,057.65 while the S&P 500 rose 1.70% to 2,102.06.5

 

THIS WEEK: Nothing major is scheduled for Monday. Tuesday brings earnings from JPMorgan Chase, Wells Fargo, Fastenal, Intel, CSX and Johnson & Johnson, plus the March PPI and data on March retail sales and euro area industrial output. Wednesday offers data on industrial production in the U.S. and China, a GDP reading from China, a new Fed Beige Book and earnings from Bank of America, Charles Schwab, Delta Air Lines, Kinder Morgan, Netflix, PNC, Progressive, SanDisk and U.S. Bancorp. On Thursday, housing starts numbers for March arrive, G-20 finance ministers meet in Washington D.C. and earnings from American Express, AMD, Blackstone Group, Citigroup, Goldman Sachs, Mattel, Philip Morris and Sherwin-Williams appear. The University of Michigan’s preliminary March consumer sentiment index comes out Friday, and so do the March CPI and the latest CPI for the euro area; on the earnings front, GE, Comerica, Seagate Technology and Honeywell all issue announcements.

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +1.32 +11.67 +12.84 +7.28
NASDAQ +5.49 +23.23 +20.72 +15.08
S&P 500 +2.10 +14.67 +15.20 +7.80
REAL YIELD 4/10 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.14% 0.51% 1.56% 1.82%

Sources: online.wsj.com, bigcharts.com, treasury.gov – 4/10/156,7,8,9

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

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This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

Citations.

1 – ism.ws/ismreport/nonmfgrob.cfm [4/6/15]

2 – tinyurl.com/oyqdoyl [4/10/15]

3 – marketwatch.com/story/oil-futures-stable-after-volatile-week-wti-above-50-a-barrel-mark-2015-04-10 [4/10/15]

4 – marketwatch.com/story/gold-struggles-to-hold-weekly-winning-streak-alive-2015-04-10 [4/10/15]

5 – markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp [4/10/15]

6 – markets.wsj.com/us [4/10/15]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F3%10F14&x=0&y=0 [4/10/15]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F10%2F14&x=0&y=0 [4/10/15]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F10%2F14&x=0&y=0 [4/10/15]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F9%2F10&x=0&y=0 [4/10/15]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F9%2F10&x=0&y=0 [4/10/15]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F9%2F10&x=0&y=0 [4/10/15]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F11%2F05&x=0&y=0 [4/10/15]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F11%2F05&x=0&y=0 [4/10/15]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F11%2F05&x=0&y=0 [4/10/15]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/10/15]

9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/10/15]

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