US Stocks rose this week on the heels of good economic news. The 10 year treasury yield has risen sharply from record lows just over a week ago based on the good economic news while shorter term Treasuries have remained low due to foreign buying. Oil prices ended the week higher and precious metals ended the week lower. The U.S. dollar declined slightly against a basket of foreign currencies.
In the numbers this week.
- The Commerce Department reported that retail sales rose 0.6% in June following a 0.2% increase in May. From a year ago retail sales rose 2.7%.
- The Labor Department reported
- Producer prices rose 0.5% in June. Energy costs were the biggest contributor to the increase. Excluding food and energy, core prices still rose 0.4%. From a year ago, overall prices have increased only 0.3% while core prices have risen 1.3%
- Consumer prices rose 0.2% in June. Excluding volatile food and energy, consumer prices also rose 0.2%. From a year ago, prices excluding food and energy have risen 2.3%.
- First time claims for unemployment were unchanged from a week earlier at 254,000. The four week moving average of claims fell to 264.750. The four week moving average of claims fell 5,750 to 259,000.
- Import prices rose 0.2% in June due to higher oil prices. Excluding fuel import prices fell 0.3%.
- The Federal Reserve reported that industrial production rose a seasonally adjusted 0.6% in June. The manufacturing sector (of industrial production) rose 0.4% and utilities output rose 2.4% due to warmer than usual weather.
- The International Energy Agency said
- Stockpiles of oil held by developed nations hit a record high in May.
- Middle Eastern oil production rose to a record of 31.5MM barrels a day in June.
- The U.S. Energy Information Administration reported in the prior week
- Crude oil inventories fell 2.55MM barrels.
- Crude oil production rose from 8.43MM barrels per day to 8.49MM barrels per day in the week ended July 8.
- Gasoline inventories increased 1.2MM barrels.
- Baker Hughes reported that the US oil drilling rig count rose 6 to 357 and gas rigs fell 1 to 89.
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.