Companies featured in this edition of the newsletter: None
The stock market was able to settle above last Friday’s levels, even after enduring a pretty volatile week. Though fears of a September rate hike remained on everyone’s minds throughout the week, those fears were stomped out by the weekend. Due in part to a disappointing August Retail Sales report that contributed to the change in expectations. The Dow finished the week at 18,123 up 37 points or 0.2% from 18,085 last week, and it is up 4.0% for the year. The Nasdaq finished the week at 5,244 up 118 points or 2.3% from 5,125 last week, and it is up 4.7% for the year. The S&P 500 finished at 2,139 up 11 points or 0.5% from 2,127 last week, and it is up 4.7% for the year. The Russell 2000 finished at 1,223 up 4 points or 0.3% from 1,219 last week, and it is up 7.7% for the year.
The Treasury Budget for August showed a deficit of $107.1 billion versus a deficit of $64.4 billion in August 2015. Lower prices for agricultural and nonagricultural exports led to a 0.8% decline in export prices in August while lower fuel prices paced a 0.2% decline in import prices. Excluding agriculture, export prices declined 0.4% after increasing a revised 0.2% in July. Excluding fuel, import prices were unchanged after increasing an unrevised 0.3% in July. Jobless claims for the week ending September 10 were 260,000, up 1,000 from the prior week and the 80th straight week they have been below 300,000. Continuing claims for the week ending September 3 were 2.143 million, also up 1,000 from the prior week. Total retail sales declined 0.3% in August after increasing a revised 0.1% in July. Excluding autos, retail sales declined 0.1% after declining a downwardly revised 0.4% in July. Total PPI was unchanged after declining 0.4% in July, and Core PPI, which excludes food and energy, was up 0.1% after declining 0.3% in July. The Philadelphia Fed Index checked in at 12.8 versus 2.0 in August.
That marked the first time since last August that the index has registered two consecutive positive readings. Industrial production declined 0.4% in August, which wasn’t a complete surprise, after increasing a downwardly revised 0.6% in July. The capacity utilization rate dropped to 75.5% from 75.9%. Total business inventories were unchanged in July following an unrevised 0.2% increase in June. Total CPI increased 0.2% in August while core CPI, which excludes food and energy, increased 0.3%. The energy and food indexes were unchanged in August, which capped some of the strength in total CPI. The preliminary reading of the University of Michigan Consumer Sentiment Survey for September was unchanged from the final August reading, holding at 89.9.
No market movers reported earnings this week.
This week the Goldman Sachs 25th Annual Communacopia Conference will be held September 20-22, 2016 at The Conrad Hotel in New York. The 2016 Aegis Capital Corporation Growth Conference will be held September 20-22, 2016 at Encore at Wynn Las Vegas, NV.
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