Toll Free: 800-584-3652

 

Check out the background of this investment professional on FINRA's BrokerCheck

What will you do... 
When your money works for you?

Weekly Economic Update September 17, 2017

Weekly Economic Update

Provided by TechGirl Financial

INFLATION SPIKED IN AUGUST

Economists had long assumed consumer prices would rise abruptly at some point, and they certainly did last month. The Consumer Price Index increased 0.4% in August, its biggest one-month advance since its 0.6% gain in January. Higher gas prices were a major influence: they rose 6.3% for August. Core inflation was up 0.2% after four straight 0.1% monthly gains. Yearly consumer inflation is now at 1.9%. Wholesale inflation, as measured by the Producer Price Index, rose 0.2% in August to an annualized pace of 2.4%.1,2

RETAIL SALES STAGE A LATE-SUMMER RETREAT

Americans cut back on retail purchases during August. Retail sales declined 0.2%, a disappointment after the 0.3% July gain. The silver lining: the core number, minus gasoline and auto buying, rose 0.2%.2

CONSUMER SENTIMENT INDEX DIPS SLIGHTLY

The University of Michigan’s twice-monthly barometer of the American consumer’s mood fell 1.5 points in its initial September edition. At a mark of 95.3, the index was still 4.5% above where it was a year earlier. While the index’s current conditions component hit its highest level in nearly 17 years, 9% of survey respondents believed that Hurricanes Irma and Harvey had hurt the overall economy.3

A MILESTONE FOR THE S&P 500

Recording its highest close ever, the broad equities benchmark settled at 2,500.23 Friday, capping off a 5-day gain of 1.58% and attaining its third round-number highpoint of 2017. The Nasdaq Composite advanced 1.39% for the week to 6,448.47. Setting the pace for the big three, the Dow Jones Industrial Average added 2.16% last week to close Friday at 22,268.34. The Russell 2000 had an even better week, rising 2.31% to 1,431.71; the CBOE VIX again neared historic lows, dropping 16.09% in five days to 10.17.4,5

THIS WEEK

On Monday, Steelcase shares quarterly results. Earnings calls Tuesday include announcements from Adobe Systems, AutoZone, Bed Bath & Beyond, and FedEx, and investors will also look at the Census Bureau’s August report on new residential construction. Wednesday, the Federal Reserve could reveal plans for unwinding its balance sheet as it wraps up a monetary policy meeting; Wall Street will also consider August existing home sales numbers and Q3 results from General Mills. A new initial unemployment claims report arrives Thursday. CarMax and Finish Line present earnings Friday.

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

+12.68  +22.27  +12.76 +6.57

NASDAQ

+19.79

+22.84

+20.51

+14.78

S&P 500

+11.68

+16.44

+14.11

+6.85

REAL YIELD

9/15 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

0.35%

0.22%

-0.76%

2.20%

Sources: wsj.com, bigcharts.com, treasury.gov - 9/15/175,6,7,8

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.

WEEKLY RIDDLE:

Take three letters, arrange them one way, and you have a word for “conflict.” Arrange them another way, and you have a word for “uncooked.” What are the three letters?  

LAST WEEK’S RIDDLE:

I walk and run on all fours, and I laugh while stalking my prey, but I seldom go in for the kill. What animal am I?  

LAST WEEK’S ANSWER:

A hyena.

Kim Gaxiola

Registered Representative of and securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Investment advisory services offered through Cambridge Investment Research Advisors, a Registered Investment Advisor. TechGirl Financial and Cambridge Investment Research, Inc., are not affiliated companies.
Gaxiola Financial Group | 305 Vineyard Town Center #369 | Morgan Hill, CA 95037
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 purposeof 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

Citations.

1 - cnbc.com/2017/09/14/us-consumer-price-index-aug-2017.html [9/14/17]

2 - investing.com/economic-calendar/ [9/15/17]

3 - sca.isr.umich.edu/ [9/15/17]

4 - bloomberg.com/news/articles/2017-09-15/u-s-stocks-reach-another-milestone-as-s-p-500-vaults-past-2-500 [9/15/17]

5 - markets.wsj.com/us [9/15/17]

6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F15%2F16&x=0&y=0 [9/15/17]

6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F15%2F16&x=0&y=0 [9/15/17]

6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F15%2F16&x=0&y=0 [9/15/17]

6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F14%2F12&x=0&y=0 [9/15/17]

6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F14%2F12&x=0&y=0 [9/15/17]

6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F14%2F12&x=0&y=0 [9/15/17]

6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F14%2F07&x=0&y=0 [9/15/17]

6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F14%2F07&x=0&y=0 [9/15/17]

6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F14%2F07&x=0&y=0 [9/15/17]

7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [9/15/17]

8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [9/15/17]

Explore your financial happiness... We can get you there!