Despite gains on Friday, U.S. stocks ended the week lower based on uncertainty over the new president’s policies. So far fourth quarter earnings have been showing gains and there was generally positive economic news this week. 10-year Treasury yields rose back to 2.5%. The dollar and commodities were largely unchanged for the week.
In the numbers this week:
- The Federal Reserve reported that industrial production rose 0.8% in December, the fastest increase in over two years. Capacity utilization increased 0.6% to 75.5%.
- Eurostat reported that that consumer prices rose 1.1% for calendar year 2016. Nearly all 19 countries saw increases, a welcome relief from deflation.
- The Energy Information Administration weekly report is attached.
- Baker Hughes reported that oil drilling rigs jumped 29 to 551. Gas drilling rigs rose 6 to 142.
- The Labor Department reported:
- The consumer-price index rose a seasonally adjusted 0.3% in December. Excluding volatile food and energy prices rose 0.2%. From a year earlier prices rose 2.1% or 2.2% excluding food and energy. While the number is above 2%, the FED typically looks at the PCE index and by that measure as of the end of November, prices increased 1.4%, still below the FED’s target.
- initial claims for unemployment fell 15,000 to a seasonally adjusted 234,000. The four-week moving average of claims, designed to smooth out weekly fluctuations, fell 10,250 to 246,750, the lowest level since November 1973 when the workforce was much smaller.
- Factset reported that with 12% of S&P 500 companies reporting, 4th quarter earnings have increased 3.4%.
Please call us if you have any questions.
Loren C. Rex, CFP®, AIF®, MA 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. Indices mentioned are unmanaged and cannot be invested into directly. Past performance is not a guarantee of future results.