Blog Post

US stocks declined for the week but fared better than international stocks, especially Europe.  Treasury rates rose and prices fell following Janet Yellen’s comments that the US economy is strong enough to withstand a rate increase and that the FED would likely be raising rates before year end.  Gold prices rose, energy prices were flat and grain prices rose.  The dollar strengthened against a basket of currencies.

In economic news this week:

  • The National Association of Realtors reported that existing home sales fell a seasonally adjusted 4.8% in August.  From a year ago existing home sales were up 6.2%.  The median home price was up 4.7% from a year ago.
  • The preliminary Caixin China manufacturing purchasing manager’s index fell to 47.0 from 47.3 in August indicating that manufacturing is contracting at a faster pace.  This is the lowest reading in 6.5 years
  • The Energy Information Administration reported US crude oil inventories fell by 1.92MM barrels in the prior week.  Gasoline inventories rose 1.37MM barrels and distillate inventories (including diesel, heating oil, jet fuel) fell 2.1MM barrels.  Crude inventories have now fallen two weeks in a row.
  • The Commerce Department reported
    • Orders for durable goods fell a seasonally adjusted 2.0% in August, better than forecast.  July was revised down to a 1.9% gain.  Excluding transportation, durable goods orders were unchanged.  Excluding defense, durable goods orders fell 1.0%.  Excluding aircraft durable goods orders declined 0.2%.
    • New home sales rose a seasonally adjusted 5.7% in August to a new post-recession high.
    • Gross domestic product growth in the second quarter was revised to a 3.9% annual rate up from the previous revision at 3.7% and the initial reading of 2.3%.  Expectations are for slower growth in the 3rd
  • The Labor Department reported that initial jobless claims rose 3,000 in the prior week to 267,000.  The four week moving average of claims fell 750 to 271,750.  Claims have remained low indicating health in the labor markets.

Please call us if you have any questions.

Best Regards,

Loren C. Rex, CFP®, AIF®                                                                               Erik Smith

President                                                                                                           Partner

Generations Financial Planning & Wealth Management                269-441-4143

77 E. Michigan Ave, Suite 140

Battle Creek, MI  49017

Tel  269-441-4090

Carrie Fuce, Assistant 269-441-4091

Toll Free: 800-513-8180

Fax  269-441-4093

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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.


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