Stocks ended the week mixed as traders wait to see if the G20 summit will bring some resolution to the U.S.-China trade war. May inflation numbers came in near the FEDs target raising questions about if or how soon the FED will cut interest rates. Crude oil prices ended up to $58.03 as us inventories fell. Gold ended at $1413 an ounce and the U.S. dollar ended up slightly against a basket of currencies.
In the numbers this week:
- The Commerce Department reported:
- Sales of newly built single-family homes fell a seasonally adjusted 7.8% in May.
- The median price of a new home in May was $308,000, down from $316,700 last May.
- At the current sales pace the inventory of new homes would last 6.4 months, up from 5.6 months a year ago.
- Durable goods order fell 1.3% in May. Most of the decline was due to a 28.2% drop in civilian aircraft orders in May. Excluding the volatile transportation and defense categories, non-defense capital goods excluding aircraft, durable goods orders actually rose 0.4% in May.
- The second revision to Q1 gross domestic product was unchanged at a 3.1% annual growth rate.
- Personal-consumption expenditures rose a seasonally adjusted 0.4% in May showing strength in consumer spending.
- The price index for personal-consumption expenditures rose a seasonally adjusted 0.16% in May. Excluding volatile food and energy core PCE price index rose 0.19%. From a year ago the PCE rose 1.52% and core prices have risen 1.6%. However, these were largely due to a sharp in energy in late 2018 and early 2019. For the past three months core prices have increased close to the FED’s target of 2%.
- The Labor Department reported first time claims for unemployment rose from a seasonally adjusted 216,000 to 227,000. The four week moving average of claims, designed to smooth out weekly fluctuations, rose to 221,250.
- The Energy Information Administration weekly report is here wpsrsummary. Also, the EIA reported in the prior week:
- U.S. Crude oil production fell from 12.2MM barrels per day to 12.1MM barrels per day.
- Storage of natural gas rose 98BN cubic feet and is still below the past five year average for this time of year.
- Baker Hughes reported in the past week that the number of active oil rigs rose 4 to 793 and the number of active gas rigs fell 4 to 173.
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Loren C. Rex, CFP®, AIF®, MA Erik A Smith
President Managing Partner
Generations Financial Planning & Wealth Management 269-441-4143
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Battle Creek, MI 49017
Carrie Fuce, Assistant 269-441-4091
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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.