Despite a rally on Friday, stocks ended the week lower. Emerging markets stocks had substantial declines. Trade concerns weighed on the markets as tariffs were ramped up due to difficulties with the US-China trade negotiations. Economic data this week was generally positive.
In the numbers this week:
- The Commerce Department reported the trade deficit rose 1.5% in March after falling sharply in April. However, the trade deficit with China fell to its lowest level in almost three years.
- The Labor Department reported
- First time claims for fell from a seasonally adjusted 230,000 to 228,000. The four week moving average of claims increased 7,750 to 220,250.
- The producer-price index rose 0.2% in in April. From a year earlier producer prices rose 2.2% down from the recent peak of 3.4% last summer. A decline in margins helped keep the increase down. Excluding these, food and energy, producer prices rose 0.4% in April.
- The consumer-price index rose 0.3% in April mainly due to energy and rent costs. Excluding volatile food and energy prices rose 0.1%. From a year earlier, prices rose 2.0% and core prices were up 2.1%.
- The Energy Information Administration weekly report is here: wpsrsummaryattached. Also, the EIA reported in the prior week:
- U.S. Crude oil production fell from 12.3MM barrels per day to 12.2MM barrels per day.
- Storage of natural gas rose 85BN cubic feet.
- Baker Hughes reported in the past week that the number of active oil rigs fell 2 to 805 and the number of active gas rigs was unchanged at 183.
- Factset reported with 90% of S&P 500 companies reporting earnings, the blended earnings decline was -0.5% versus the 1st quarter last year. 76% of companies posted a positive earnings surprise and 60% reported a positive revenue surprise. 65 S&P500 companies reported negative guidance and 17 reported positive guidance.
Please call us if you have any questions.
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. The Indices mentioned are unmanaged and cannot be invested into directly.