In this week’s recap: stocks continue their
win streak despite a mediocre jobs report and dips for the ISM indices; household
spending and confidence rise.
Weekly Economic Update
Presented by Troy L Thompson CFP, August 8 2018
ECONOMY
ADDS 157,000 NET NEW JOBS
Employers expanded their payrolls in July,
but new Department of Labor data showed the hiring pace slowing down. May and
June gains, however, were revised up by a combined 59,000, bringing average
monthly job growth over the past three months to 224,000. Even with fewer hires,
the headline unemployment rate ticked down to 3.9%, and the U-6 rate (factoring
in underemployed workers) dropped 0.3% to 7.5%, underneath where it was in July
2017. Last month, wages had improved 2.7%, year-over-year.1
GOOD
NEWS FOR CONSUMER SPENDING AND CONSUMER CONFIDENCE
Personal spending, according to the
Department of Commerce, rose 0.4% during June on the heels of a 0.5% May climb.
Personal incomes improved by 0.4% in June, duplicating the number from May.
Beating the 127.0 forecast of analysts surveyed by MarketWatch, the Conference
Board’s July consumer confidence index rose 0.3 points to 127.4.2
ISM
PURCHASING MANAGER INDICES DECLINE
While still in fine shape, the Institute for
Supply Management’s twin gauges measuring economic activity in the factory and
service sectors fell last month. The Institute’s manufacturing PMI went from a
60.2 June reading to a 58.1 July mark. ISM’s non-manufacturing PMI lost 3.4
points on the month, heading down to 55.7.3
STOCKS
ADVANCE FOR A FIFTH STRAIGHT WEEK
Up 0.76% over five trading sessions, the
S&P 500 settled at 2,840.35, Friday. The Nasdaq Composite added 0.96% for
the week, reaching 7,812.01 at Friday’s closing bell. Blue chips were flat for
the week: the Dow Industrials gained but 0.05% to 25,462.58. All three indices
were positive for Friday, even with news that China planned to levy import
taxes on $60 billion more of American exports.4,5
T I P O F
T H E W E E K
Usually, there is little point in trying to negotiate a financial aid package for a student at one university by referencing another offer made by a different school. Most colleges have tight financial aid budgets to begin with and firm award guidelines for financial aid officers to follow.
THIS WEEK
Monday’s earnings parade
includes announcements from Andeavor, Boise Cascade, Hertz Global Holdings, Marriott
International, Mosaic, Sempra Energy, Tyson Foods, and Weight Watchers. | Tuesday,
Wall Street considers earnings from Aramark, Avis Budget Group, Camping World,
Dean Foods, Discovery Channel, Hostess Brands, Invacare, Office Depot, Papa
John’s, Snap, Walt Disney Co., and Wendy’s. | Earnings from CVS Health, Green
Dot, Horizon Pharma, Keurig Dr. Pepper, Manulife, Michael Kors, Monster
Beverage, Roku, Sinclair Broadcasting, Starwood Hotels & Resorts, Sunoco, TiVo,
Twenty-First Century Fox, U.S. Auto Parts, Weibo, Wyndham Destinations, and Yelp
appear Wednesday. | Thursday, the July Producer Price Index arrives, along with
a new initial jobless claims report and earnings from Gannett, Lions Gate, News
Corp., Norwegian Cruise Line, Planet Fitness, Tronc, Viacom, and Vista Outdoor.
| Friday marks the appearance of the July Consumer Price Index.
Q U O T E O F T H E W E E K
“The
greatest obstacle to discovery is not ignorance - it is the illusion of knowledge.”
DANIEL
BOORSTIN
% CHANGE
|
Y-T-D
|
1-YR CHG
|
5-YR AVG
|
10-YR AVG
|
DJIA
|
3.01
|
15.60
|
12.52
|
12.56
|
NASDAQ
|
13.16
|
23.21
|
22.35
|
24.18
|
S&P 500
|
6.24
|
14.89
|
13.23
|
12.74
|
REAL YIELD
|
8/3 RATE
|
1 YR AGO
|
5 YRS AGO
|
10 YRS AGO
|
10
YR TIPS
|
0.83
|
0.46
|
0.42
|
1.64
|
Sources: wsj.com, bigcharts.com, treasury.gov - 8/3/185,6,7,8
Indices are unmanaged, do not incur fees or expenses, and cannot be
invested into directly. These returns do not include dividends. 10-year TIPS
real yield = projected return at maturity given expected inflation.
T H E W E E K L Y
R I D D L E
LAST
WEEK’S RIDDLE: What can you feel but never touch, hear but never see?
ANSWER:
The wind.
Troy L
Thomson CFP may be reached at 515-432-5421 or troy@thompsonfinancialinc.com
www.thompsonfinancialinc.com
www.thompsonfinancialinc.com
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CITATIONS:
1
- nbcnews.com/business/economy/price-rising-employment-slow-wage-growth-trade-risks-n897461
[8/3/18]
2
- marketwatch.com/economy-politics/calendars/economic [8/3/18]
3
- instituteforsupplymanagement.org/ISMReport/NonMfgROB.cfm [8/3/18]
4
- foxbusiness.com/markets/stock-futures-cautiously-lower-ahead-of-july-jobs-report
[8/3/18]
5 - markets.wsj.com/us [8/3/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F3%2F17&x=0&y=0
[8/3/18]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F3%2F17&x=0&y=0 [8/3/18]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F3%2F17&x=0&y=0 [8/3/18]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F2%2F13&x=0&y=0 [8/3/18]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F2%2F13&x=0&y=0 [8/3/18]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F2%2F13&x=0&y=0 [8/3/18]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F4%2F08&x=0&y=0 [8/3/18]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F3%2F17&x=0&y=0 [8/3/18]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F3%2F17&x=0&y=0 [8/3/18]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F2%2F13&x=0&y=0 [8/3/18]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F2%2F13&x=0&y=0 [8/3/18]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F2%2F13&x=0&y=0 [8/3/18]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F4%2F08&x=0&y=0 [8/3/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F4%2F08&x=0&y=0
[8/3/18]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F4%2F08&x=0&y=0
[8/3/18]
7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [8/3/18]
8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [8/3/18]
7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [8/3/18]
8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [8/3/18]
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