Market volatility has returned after a six-week lull. On Monday, three members of the Federal Reserve gave dovish speeches and the markets rallied. Most days this week the markets were up or down over 1% depending on how the economic news was interpreted as affecting the FED’s rate decision next week. US stocks were generally up modestly for the week with the Nasdaq leading the gains. Treasury yields rose slightly and commodities were down.
In the numbers this week.
- The Census Bureau reported
- Median household income rose a record 5.2% in 2015. This was the largest annual gain since the Census Bureau started keeping records in 1967.
- 5% of us households were living below the poverty rate in 2015 down from 14.8% in 2014.
- The Treasury Department reported that the U.S. Budget deficit rose 25% to $530BN in the 11 months ending in August as federal spending has risen faster in revenue. While personal tax revenue has risen 4% this fiscal year, corporate tax revenue has risen only 1%. As a percent of Gross Domestic Product, the deficit is running 2.9% up from 2.6% last year.
- The Commerce Department reported that retail sales fell 0.3% in August. Excluding autos retail sales were down 0.1%.
- The U.S. Energy Information Administration reported in the prior week:
- Crude oil inventories fell 600,000 barrels.
- Daily Crude oil production rose 35,000 barrels.
- Gasoline inventories rose 600,000 barrels.
- Baker Hughes reported that the US oil drilling rig count increased 2 to 416 while gas rigs decreased 3 to 89.
- The Labor department reported:
- First time claims for unemployment in the prior week increase 1,000 to 260,000. The four week moving average of claims decreased 500 to 260,750.
- Import prices fell 0.2% in August from July and were down 2.2% from a year ago.
- The consumer price index rose 0.2% in August. Excluding volatile food and energy, prices rose 0.3%. From a year ago, CPI rose 1.1% and excluding food and energy prices were up 2.3%.
- The Federal Reserve reported that U.S. industrial production fell a seasonally adjusted 0.4% 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.