The markets rallied on the Fed’s decision not to raise rates at this meeting but gave back some of those gains on Friday following discouraging signals from OPEC members about a possible production cap. The Bank of Japan this week said it would target a rate of zero percent for its 10-year bond and adjust its bond purchases to achieve this target. Commodities rose with a strong increase in oil prices despite the Friday selloff. The U.S. 10-year Treasury yield moved lower as did the dollar index due to the FED delaying an interest rate hike.
In the numbers this week.
- The National Association of Realtors reported that sales of previously owned homes fell 0.9% in August. From a year earlier the August sales were up 0.8%.
- The Commerce Department reported that U.S. housing permits fell a seasonally adjusted 0.4% in August. However, removing multi-family housing starts and just looking at single family housing permits showed a 3.7% gain.
- The U.S. Energy Information Administration reported in the prior week:
- Crude oil inventories fell 6.2MM barrels.
- Daily Crude oil production rose 19,000 barrels.
- Gasoline inventories fell 3.2MM barrels largely due to a pipeline shutdown supplying the East Coast.
- Baker Hughes reported that the US oil drilling rig count increased 2 to 418 while gas rigs increase 2 to 91.
- The Labor department reported:
- First time claims for unemployment in the prior week decreased 8,000 to 252,000. The four week moving average of claims decreased 2,250 to 258,500.
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Loren C. Rex, CFP®, AIF® Erik Smith
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.