U.S. and global stocks rose this past week as the markets digested positive economic news. Also, hopes rose for tax reform and fiscal stimulus and some relief came from Trump signaling only modest changes to the North American Free Trade Agreement. Oil prices rose on a slower inventory build. Gold prices fell while the dollar rose and 10-year Treasury yields rose on the heels of an increase in consumer prices.
In the numbers this week:
- The S&P Core Logic Case-Shiller home price index rose 5.9% in January from a year ago, up from 5.7% in December. Price increases were attributed to job growth, demographic changes putting more people over age 30 and short supply of existing houses.
- The Commerce Department reported:
- Gross Domestic Product was revised from a 1.9% increase in the fourth quarter to a 2.1% increase.
- The personal-consumption expenditures index was 2.1% in February from the year prior. This is the first time this has been above 2.0% since March 2012. This is significant because 2.0% is the FED’s desired target. This will likely ensure the FED will stick to its planned interest rate increases.
- Corporate profits after taxes (not the same as company earnings) rose 22.3% in the fourth quarter from a year ago.
- The Energy Information Administration’s Weekly Petroleum Data report is here wpsrsummary (9).
- The Energy Information Administration reported
- Weekly field production of crude oil increased 18,000 barrels per day in the prior week.
- Natural gas in storage fell 43 Bcf from the prior week but is still above the five-year average.
- Baker Hughes reported that oil drilling rigs rose 10 to 662. Gas drilling rigs rose 5 to 160.
- The Labor Department reported initial claims for unemployment fell 3,000 to a seasonally adjusted 258,000. The four-week moving average of claims, designed to smooth out weekly fluctuations, rose 7750 to 254,250.
Please call us if you have any questions.
Loren C. Rex, CFP®, AIF®, MA Erik Smith
President Managing Partner
Generations Financial Planning & Wealth Management 269-441-4143
77 E. Michigan Ave, Suite 140
Battle Creek, MI 49017
Carrie Fuce, Assistant 269-441-4091
Toll Free: 800-513-8180
Visit our Website: www.genfinplan.com
Registered Representative of and securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and Generations Financial Planning & Wealth Management are separate companies and are not affiliated.
These are the opinions of Loren Rex and Erik Smith and are not necessarily those of Cambridge, are for informational purposes only, and should not be construed or acted upon as individualized investment advice. Indices mentioned are unmanaged and cannot be invested into directly. Past performance is not a guarantee of future results