While U.S. stocks were down slightly for the month of August, they rose for the week ending September 2nd after a rally on Friday was fueled by a Goldilocks jobs report. Since jobs gains came in significantly below estimates but were still fairly healthy, market participants lowered expectations of a FED rate increase in September but still felt comfortable that the economy will grow. Not too hot, not too cold. Treasury yields fell moderately while commodity prices were steeply lower and the dollar rose against a basket of currencies.
In the numbers this week.
- The Commerce Department reported:
- Personal consumption rose a seasonally adjusted 0.3% in July the fourth month in a row.
- Personal incomes rose 0.4% in July.
- The U.S. Trade deficit fell 11.6% in August from July. The decline was mostly due to increased food, animal feed and beverage exports. Soybean exports were up very sharply and it’s uncertain if this will continue. Imports fell mainly in consumer goods such as pharmaceuticals.
- The S&P Core Logic Case-Shiller Indices showed that U.S. home prices rose 5.1% at the end of June from a year ago. Price increases were especially steep on the West Coast.
- The National Association of Realtors reported that pending home sales rose a seasonally adjusted 1.3% in July.
- The U.S. Energy Information Administration reported in the prior week:
- Crude oil inventories rose 2.3MM barrels.
- Daily Crude oil production fell 60,000 barrels.
- Gasoline inventories fell by 700,000 barrels.
- Baker Hughes reported that the US oil drilling rig count increase 1 to 407 while gas rigs increased 7 to 88.
- The Labor department reported:
- First time claims for unemployment in the prior week rose 2,000 to 263,000. The four week moving average of claims decreased 1000 to 263,000.
- S. Nonfarm payrolls increased a seasonally adjusted 151,000 in August. The unemployment rate stayed at 4.9%. June and July were also revised down 1,000 each.
- The Institute for Supply Management reported:
- Its U.S. manufacturing index fell from 52.6 in July to 49.4 in August. So for the first time in six months manufacturing contracted slightly.
- Its index for export orders showed growth for the sixth consecutive month.
- The China Caixin manufacturing index fell from 50.6 in July to 50.0 in August.
Please call us if you have any questions.
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.