US stocks fell sharply this week mainly due to poor retail sales and falling commodity prices. The selloff accelerated Friday after news of the terrorist attack in Paris. Treasury prices were only slightly higher this week despite the stock selloff due to hawkish comments from FED officials. Foreign stocks fell less than US Stocks and the dollar was unchanged. According to Factset with 463 out of 500 companies reporting, 3rd quarter earnings have fallen 1.8% from the prior quarter.
In economic news this week:
- China reported
- October exports have declined 6.9% from a year ago while imports have declined 18.8%. Import declines were largely attributed to falling commodity prices while China’s rising labor and land costs were blamed for the export decline.
- Retail sales rose 11% from a year earlier in October.
- Industrial production rose at a 5.6% year over year rate in October down from a 5.7% Y-O-Y rate in September.
- The European Union’s statistics agency reported that the gross domestic product in the third quarter was 0.3% higher, slower than the 0.4% rise in the second quarter. From a year ago the GDP was 1.6% higher.
- The Labor Department reported:
- Import prices fell 0.5% in October from the prior month more than expected on weak energy prices and the strong dollar. From a year ago import prices are down 10.5%.
- First time claims for unemployment were unchanged in the prior week at a seasonally adjusted 276,000. The four week moving average of claims rose 5,000 to 267,750 in the prior week. First time claims are still running near a four decade low.
- The producer price index fell 0.4% in the month of October, more than expected. From a year ago producer prices have fallen 1.6% mainly due to falling commodity prices.
- The Treasury Department reported that over the past twelve months the US budget deficit was 2.4% of the U.S. economy’s gross domestic product down from 2.9% a year ago. Commodity prices were largely
- The Commerce Department reported that retail sales grew only 0.1% in October, less than forecast. The biggest gains were in building materials, restaurants and online sales. The biggest drop was in gasoline sales which were down 09%.
Please call us if you have any questions,
Loren C. Rex, CFP®, AIF® Erik Smith
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
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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.