Stocks had modest losses as generally good economic news was overshadowed by increased geopolitical tensions. Middle east concerns flared as two more tankers were attacked in the strait of Hormuz. Trade concerns also weighed on the markets as it is uncertain if there will be a meeting between president’s Trump and Xi at the G20 meeting. Despite the ship attacks, crude oil prices fell, ending the week at $52.51 a barrel. Gold prices rose ending at $1344.90 an ounce. The U.S. Dollar rose against a basket of currencies and the 10-year Treasury note ended the week at 2.086%.
In the numbers this week:
- The Federal Reserve reported that industrial production rose 0.4% in May and is up 2.0% from a year ago.
- Utility production rose 2.1% in May, rebounding from a sharp decline in April.
- Factory production increased 0.2% in May following an average decline of 0.4% in the first four months of 2019.
- Mining production, including oil and gas production rose 0.1% in May and is up 10% from a year ago.
- The Commerce Department reported Consumer spending rose a seasonally adjusted 0.5% in May.
- The Labor Department reported:
- First time claims for unemployment rose from a seasonally adjusted 218,000 to 222,000. The four week moving average of claims, designed to smooth out weekly fluctuations, rose to 217,750.
- The producer-price index rose 0.1% in May. Excluding volatile food and energy, prices rose 0.2%. From a year earlier producer prices rose 1.8%.
- The consumer-price index rose a seasonally adjusted 0.1% in May. Excluding volatile food and energy, the CPI was also up 0.1%. From a year ago, consumer prices have risen 1.8%. Excluding food and energy consumer prices were up 2.0% from a year ago.
- After adjusting for inflation, average hourly earnings rose 0.2% in May and 1.3% from a year ago.
- The Energy Information Administration weekly report is here: wpsrsummary Also, the EIA reported in the prior week:
- U.S. Crude oil production fell from 12.4MM barrels per day to 12.3MM barrels per day.
- Storage of natural gas rose 102BN cubic feet and is still below the five year average for this time of year.
- Baker Hughes reported in the past week that the number of active oil rigs fell 1 to 788 and the number of active gas rigs fell 5 to 181.
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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
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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. The Indices mentioned are unmanaged and cannot be invested into directly.