As the Houston area recovers from hurricane Harvey, hurricane Irma takes aim at Florida. Disruptions in refining and the main gasoline pipeline that supply’s the east coast affected gasoline prices for much of the U.S. Crude oil inventories saw a huge draw down due to supply disruptions. The European Central Bank president, Mario Draghi, indicated no changes currently but that the bank may announce next month the winding down of its bond buying program. The Bank of Canada raised its benchmark interest rate from .75% to 1.0% and signaled there would be more increases coming. Stocks plunged on Tuesday on fears of North Korea testing a much bigger nuclear weapon over the weekend. This was likely a hydrogen bomb. For the week, U.S. stocks were modestly lower with international stocks modestly higher. Oil prices rose higher as did gold. U.S. Treasury yields fell as did the dollar.
In the numbers, this week:
- The Commerce Department reported the U.S. Trade deficit rose 0.3% in July as both imports and exports decreased.
- The Labor Department reported:
- First time jobless claims rose 62,000 to 298,000 in the prior week. The big jump was attributed to hurricane Harvey.
- Nonfarm business-sector productivity was adjusted up to a 1.5% seasonally adjusted annual rate in the second quarter. This is significant as productivity growth is necessary for wages to increase without igniting higher inflation. From a year ago productivity rose 1.3%.
- Output rose 4% in the second quarter and hours worked rose 2.5%.
- Average hourly earnings rose $0.03 per hour in August. From a year earlier wages are up 2.5%.
- The Energy Information Administration’s Weekly Petroleum Data report is here: wpsrsummary
- The Energy Information Administration reported
- Weekly field production of crude oil fell 749,000 barrels per day in the prior week due to hurricane Harvey.
- Natural gas in storage rose 65Bcf last week from the prior week.
- Baker Hughes reported that oil drilling rigs fell 3 to 756. Gas drilling rigs rose 4 to 187.
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.