Category: Weekly Updates

Weekly Updates

Financial News and Portfolio Management Discussion through October 19th

Stocks gained over the week on solid quarterly earnings.  The S&P 500 rose 0.6%, while the Dow ticked down -0.1% for the week.  Abroad, the FTSE All-World Ex-US climbed 1.2% for the week. The 10-year Treasury yield finished the week at 1.75%, flat for the week.

With about 10% of S&P 500 companies reporting earnings, the numbers to date have topped expectations.

US Retail sales fell 0.3% in September for the first monthly decline since February.

Negotiators from the UK and EU were able to reach a deal on the UK’s exit from the country bloc.  However, its uncertain if the agreement will pass Parliament.

US Industrial production fell 0.4% in September.

China’s third-quarter GDP growth slowed to 6%, a 26 year low.  It’s at the low level of the range targeted by the Chinese government.

 

 

Financial News and Portfolio Management Discussion through October 12th

Stocks jumped to end the week on positive trade developments.  The S&P 500 rose 0.7% and the Dow gained 0.9% for the week.  Abroad, the FTSE All-World Ex-US climbed 2.0% for the week. The 10-year Treasury yield finished the week at 1.75%, well up from 1.52% at the end of the previous week, as investors felt more optimistic about the economy.

Trump announced the US and China had reached a “Phase One deal” on trade.  The US will not implement tariffs set to go into effect next week and China will increase its purchases of US agricultural goods.

Eurozone investors’ confidence fell to a six-year low.

The US moved to add 28 Chinese entities to an export backlist due to their treatment of minority groups.  The move was seen as cooling the chances of any potential trade progress.

In the Fed’s minutes from their September meeting officials became increasingly concerned that slowing global growth could more significantly slow US hiring and economic activity.  They cited muted inflation, trade policy uncertainty and weak global growth for support on cutting their benchmark interest rate at the meeting.

The US CPI was flat in September.

US consumer sentiment rose in early October.

 

Financial News and Portfolio Management Discussion through October 7th

Stocks fell over the weak on concerns about the state of the US economy.  The S&P 500 was down 0.3% and the Dow fell 0.9% for the week.  Abroad, the FTSE All World Ex-US fell 1.7% for the week. The 10-year Treasury yield finished the week at 1.52%, down from 1.68% at the end of the previous week, as investors moved to safe havens.

A US manufacturing index contracted for a second straight month and fell to its lowest level in over a decade in September.

The September jobs report showed employers adding 136,000 new hires, slightly below estimates, but August and July’s hiring numbers were revised.  The unemployment rate fell to a half-century low of 3.5% from 3.7% in August.

Surveys of purchasing managers in Europe and Asia pointed to a slow down in factory activity in September.  The UK saw factory activity decline for the fifth straight month the worst stretch since the financial crisis.

Australia’s central bank cut its benchmark rate for the third time this year.

US auto sales were down 1.4% over the first nine months of the year compared to last year.

A private sector jobs report showed the rate of hiring has slowed.

The WTO agreed to allow the US to apply tariffs on EU goods due to their ruling that Airbus receives subsidies.  The US plans to apply tariffs on $7.5B of aircraft, food products and other goods from the EU.  The tariffs will begin on October 18th with 10% levies on airlines and 25% taxes on other products.

The US service sector expanded at its slowest pace in three years raising concerns that a slow down in manufacturing is spreading across the US economy.

The UK services purchasing managers index fell to a six month low and indicated contraction.

 

Financial News and Portfolio Management Discussion through September 28th

US stocks declined over the week on dwindling expectations on a near term trade agreement and disappointing economic news.  The S&P 500 was down 1.0% and the Dow fell 0.4% for the week.  Abroad, the FTSE All World Ex-US declined 0.9% for the week. The 10-year Treasury yield finished the week at 1.68%, down from 1.75% at the end of the previous week.  Oil sank 14% to finish at $55.91 on growth worries and as supply came back online.

House Democrats announced they were launching an impeachment inquiry of President Trump.

Germany’s manufacturing and services sector weakened more than expected in September.

Business activity in the US private sector increased in September.

US consumer confidence fell more than expected in September.

US consumer spending slowed more than expected in August.

US Non-defense capital spending, a measure of business investment, fell posting its weakest reading since April.

 

Financial News and Portfolio Management Discussion through September 21st

US stocks eased over the week on oil price gains and signs of limited progress on a US/China trade deal.  The S&P 500 was down 0.5% and the Dow fell 1.0% for the week.  Abroad, Japan edged up 0.4% and Europe rose 0.3% for the week.  The 10-year Treasury yield declined on trade concerns and after the Fed cut its benchmark rate a quarter percent. The yield finished the week at 1.75%, down from 1.90% at the end of the previous week.  Oil rose 6.7% to finish at $64.28 after an attack on Saudi oil facilities knocked half of its capacity offline.

46,000 GM auto workers are on strike.  The strike could cost GM $100 million a day.

China’s central banks took steps to inject $28 billion into the banking system.

Saudi Arabia said it would only be a matter of weeks before it fully restores its oil output from before the recent attacks.

The Fed voted to cut its benchmark interest rate to a range from 1.75% to 2.0% at their September meeting and comments made by Chairmen Powell left open the possibility of additional rate cuts.  The Fed cited cushioning the US economy from a global economic slowdown and the US/China trade war.

Sales of previously owned homes rose 1.3% in August from July, much higher than expected, and was the first year over year gain in 17 months.