U.S. Stocks and international stocks ended the week with significant gains. Markets were encouraged by Chinese President Xi Jinping taking a conciliatory stance on trade and indicating that China was ready to lower tariffs on U.S. automobiles. Towards week end President Trump instructed his advisors to look into rejoining the Trans-Pacific Partnership. It was believed that pressure from agricultural interests play a role in his trade stance. The FED released the minutes from their February meeting. Notably the minutes showed greater belief in the FED achieving its 2% inflation goal.
Both short term and long term treasury yields rose marginally. Commodities were generally higher with crude oil prices posting strong gains. The dollar was slightly weaker for the week.
In the numbers this week:
- The Labor department reported
- First time claims for unemployment fell 9,000 to a seasonally adjusted 233,000. The four week moving average of claims rose 1750 to 230,000.
- The producer-price index rose 0.3% in March. Excluding volatile food and energy prices also up 0.3%. From a year ago producer prices have risen 3.0%.
- The consumer price index fell 0.1% in March due to lower nationwide gasoline prices. Excluding energy and food, consumer prices rose 0.2%. For the first quarter prices rose at an annual rate of 2.5% and 2.9% excluding food and energy.
- The Energy Information Administration weekly report is attached. Also the EIA reported:
- Weekly field production of crude oil rose 92 thousand barrels per day.
- Storage of Natural Gas rose 1BN cubic feet.
- According to Baker Hughes, In the past week the number of active oil rigs rose 7 to 815 and the number of active gas rigs fell 2 at 192.
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Loren C. Rex, CFP®, AIF®, MA Erik A 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.