|
|||||||||||||||||||||||||||||||
|
WEEKLY QUOTE
“Where
there is friendship, there is our natural soil.”
- Voltaire
WEEKLY TIP
When
a lender permits a borrower to defer a college loan, the borrower may still
have to pay interest on the remaining loan balance. The lender, not the
borrower, will decide when the loan payments need to restart.
WEEKLY RIDDLE
It
inhibits sight, makes the air colder, and it will come back for you before
the day is done. What is it?
Last week’s riddle:
I am plain, thin, and lonely, but you use me all the time. I can
appear with one keystroke or just one movement when you write. What am I?
Last week’s answer:
The number 1.
|
June 18,
2018
FED, NEW
TARIFFS GET WALL STREET’S ATTENTION
As expected, the Federal Reserve adjusted the target range
on the federal funds rate to 1.75%-2.00% on Wednesday. The central bank’s
latest dot-plot projection, however, raised some eyebrows: it showed four
interest rate increases planned for 2018 instead of three. The median
forecast of Fed officials puts the benchmark interest rate at 2.4% at the end
of this year, on the way to a peak of 3.4% in 2020. Friday morning, the Trump
administration announced new 25% tariffs on at least $34 billion of Chinese
imports. Hours later, China retaliated, declaring that it would levy 25%
import taxes on a minimum of $34 billion of goods from America. The U.S. and China
both plan to implement their new tariffs on July 6.1,2
YEARLY INFLATION
REACHES 2.8%
The latest Consumer Price Index shows the highest 12-month
inflation reading in six years; the core CPI (which leaves out food and fuel
costs) rose 2.2% in the year ending in May. Both the headline and core CPI were
up 0.2% last month. Wholesale inflation, as measured by the Producer Price
Index, increased 0.5% in May.3,4
AN IMPRESSIVE ADVANCE
FOR RETAIL SALES
According to the Department of Commerce, the May gain was
0.8% (0.9% with car and truck buying factored out). This follows an April improvement
of 0.4% (revised up from 0.3%).4
A MIXED WEEK
FOR THE MAJOR INDICES
Once again, the Nasdaq Composite outran the Dow Jones
Industrial Average and S&P 500. Last week, the tech benchmark added 1.32%
to settle at 7,746.38 at Friday’s closing bell. The S&P 500 ended up flat
for the week (+0.01%) at 2,779.42. At Friday’s close, the Dow Jones
Industrial Average had slipped 0.89% in five days to 25,090.48.5
THIS WEEK: Nothing major is slated for Monday. Wall
Street considers earnings from FedEx, La-Z-Boy, and Oracle on Tuesday, along
with the latest Census Bureau snapshot of housing construction activity. Federal Reserve Chairman Jerome Powell
discusses monetary policy at a European Central Bank forum on Wednesday
morning; investors will also eye earnings from Micron Technology, Steelcase,
and Winnebago, and a National Association of Realtors report on existing home
sales. Thursday, the Conference Board issues its May leading indicators
index, a new initial jobless claims report arrives, and Barnes & Noble,
Darden Restaurants, Kroger, and Red Hat present earnings. Friday, Blackberry,
and CarMax offer Q1 results.
Sources: wsj.com, bigcharts.com, treasury.gov - 6/15/185,6,7,8
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.
|
||||||||||||||||||||||||||||||
|
Please feel
free to forward this article to family, friends or colleagues.
If you would like us to add them to our distribution list, please reply with their address. We will contact them first and request their permission to add them to our list. |
|||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
|
«RepresentativeDisclosure»
This material was prepared by
MarketingPro, Inc., and does not necessarily represent the views of the
presenting party, nor their affiliates. The information herein has been
derived from sources believed to be accurate. Please note - investing
involves risk, and past performance is no guarantee of future results.
Investments will fluctuate and when redeemed may be worth more or less than
when originally invested. This information should not be construed as investment,
tax or legal advice and may not be relied on for the purpose of avoiding any
Federal tax penalty. This is neither a solicitation nor recommendation to
purchase or sell any investment or insurance product or service, and should
not be relied upon as such. All market indices discussed are unmanaged and
are not illustrative of any particular investment. Indices do not incur
management fees, costs and expenses, and cannot be invested into directly.
All economic and performance data is historical and not indicative of future
results. The Dow Jones Industrial Average is a price-weighted index of 30
actively traded blue-chip stocks. The NASDAQ Composite Index is a
market-weighted index of all over-the-counter common stocks traded on the
National Association of Securities Dealers Automated Quotation System. The
Standard & Poor's 500 (S&P 500) is a market-cap weighted index
composed of the common stocks of 500 leading companies in leading industries
of the U.S. economy. NYSE Group, Inc. (NYSE:NYX) operates two securities
exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly
known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange).
NYSE Group is a leading provider of securities listing, trading and market
data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is
the world's largest physical commodity futures exchange and the preeminent
trading forum for energy and precious metals, with trading conducted through
two divisions – the NYMEX Division, home to the energy, platinum, and
palladium markets, and the COMEX Division, on which all other metals trade.
Additional risks are associated with international investing, such as
currency fluctuations, political and economic instability and differences in
accounting standards. This material represents an assessment of the market
environment at a specific point in time and is not intended to be a forecast
of future events, or a guarantee of future results. MarketingPro, Inc. is not
affiliated with any person or firm that may be providing this information to
you. The publisher is not engaged in rendering legal, accounting or other
professional services. If assistance is needed, the reader is advised to
engage the services of a competent professional.
Citations.
1 - marketwatch.com/story/fomc-lifts-fed-funds-rate-to-175-2-signals-4-hikes-in-2018-2018-06-13
[6/13/18]
2 - cnbc.com/2018/06/15/china-announces-retaliatory-tariffs-on-34-billion-worth-of-us-goods-including-agriculture-products.html
[6/15/18]
3 - bloomberg.com/news/articles/2018-06-12/u-s-consumer-prices-rise-by-most-since-2012
[6/12/18]
4 - briefing.com/investor/calendars/economic/2018/06/11-15
[6/15/18]
5 -
markets.wsj.com/us [6/15/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F15%2F17&x=0&y=0
[6/15/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F15%2F17&x=0&y=0
[6/15/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F15%2F17&x=0&y=0
[6/15/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F14%2F13&x=0&y=0
[6/15/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F14%2F13&x=0&y=0
[6/15/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F14%2F13&x=0&y=0
[6/15/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F16%2F08&x=0&y=0
[6/15/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F16%2F08&x=0&y=0
[6/15/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F16%2F08&x=0&y=0
[6/15/18]
7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield
[6/15/18]
8 -
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll
[6/15/18]
|
|||||||||||||||||||||||||||||||
Wednesday, June 20, 2018
Economic Update for the week of June 20th, 2018
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment