Stocks rose again this week mainly due to a strong rally on Wednesday. The rally Wednesday appeared to be driven based on hope that Trump’s speech to Congress marks a better tone and may indicate a more collaborative approach. The markets held on to most of Wednesday’s gains despite comments from FED members indicating a high probability of another rate increase at the March meeting. International stocks had similar gains to U.S. Stocks. Commodity prices were generally lower and the dollar and treasury yields rose.
In the numbers this week:
- The Commerce Department reported:
- Durable goods orders rose 1.8% in January. Orders rose due to surges in both civilian and defense aircraft. Excluding transportation durable goods orders fell 0.2%.
- 4th quarter GDP was unchanged from its initial estimate of 1.9% annual growth rate.
- The personal consumption expenditures deflator (the FED’s preferred measure of inflation) rose 0.4% in January and 1.9% from a year ago. The FED’s target is 2.0%.
- Personal incomes rose 0.4% in January.
- Personal consumption rose 0.2% in January.
- S&P CoreLogic Case-Shiller Indices showed U.S. home prices rose 5.8% for the calendar year 2016.
- The National Association of Realtors reported that pending U.S. home sales fell 2.8% in January from December.
- The Energy Information Administration’s Weekly Petroleum Data report is here. wpsrsummary (1)
- The Energy Information Administration reported that U.S. field production of crude oil increase 31,000 barrels per day in the prior week.
- Baker Hughes reported that oil drilling rigs rose 7 to 609. Gas drilling rigs fell 5 to 146.
- The Labor Department reported initial claims for unemployment fell 19,000 to a seasonally adjusted 223,000. The previous week was revised to 242,000 claims. The four-week moving average of claims, designed to smooth out weekly fluctuations, fell 6250 to 234,250, the lowest since April 1973.
- ISM reported
- Its U.S. Manufacturing Index rose from 56.0 in January to 57.7 in February indicating an acceleration of manufacturing growth.
- Its U.S. Services Index rose from 56.5 in January to 57.6 in February.
- Factset reported that with 98% of S&P 500 companies reporting, 4th quarter earnings have increased 4.9%.
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Loren C. Rex, CFP®, AIF®, MA Erik Smith
President Managing Partner
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
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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