Tough week for stocks as there was approximately a 1 percent decline. We also saw interest rates decline a bit as well. This can be correlated as people sell stocks out of fear and move to bonds. More demand for bonds drives down yields as bond issuers don’t need to pay as much to buyers hungry for “calmer waters” than stocks.
Prices Decline in March
In March, the Consumer Price Index retreated for the first time in 13 months. Its 0.3 percent dip left annualized consumer inflation at a moderate 2.4 percent. Fuels, autos, and groceries have all become less expensive recently, according to Bureau of Labor Statistics data. Core consumer prices were up 2.0 percent in the year ending in March. The Producer Price Index fell just 0.1 percent in March, with the yearly PPI gain left at 2.3 percent.1
Retail Sales Fall
March’s 0.2 percent decrease followed a 0.3% pullback in February. The silver lining? Minus gas and vehicle sales, retail sales were up 0.1 percent last month. Core retail sales were flat for March.2
An Improvement for Consumer Sentiment
Rising to an initial April reading of 98.0, the University of Michigan’s consumer sentiment index improved 2.1 points from its final March level. The index’s current conditions component increased 2.0 points to an outstandingly high 115.2.2
A Volatile Week for Stocks
Selling outweighed buying during this past, abbreviated market week. Across four trading days, the S&P 500 fell 1.12 percent as U.S. investors considered both corporate earnings and global tensions. The Nasdaq Composite’s weekly losses were slightly deeper at 1.21 percent; the Dow Jones Industrial Average declined only 0.97 percent. Friday’s settlements: Dow, 20,453.25; Nasdaq, 5,805.15; S&P, 2,328.95.3,4
Earnings from Celanese, DISH Network, J.B. Hunt and Netflix appear Monday. Tuesday, investors review earnings from Bank of America, Charles Schwab, Citrix, Goldman Sachs, Harley-Davidson, IBM, Johnson & Johnson, Kinder Morgan, UnitedHealth, W.W. Grainger and Yahoo!, along with data on March housing starts, building permits and industrial output; also, Facebook’s F8 conference begins. Earnings announcements from Abbott Labs, American Express, BlackRock, CSX, eBay, Kaiser Aluminum, Morgan Stanley, Qualcomm, TD Ameritrade and U.S. Bancorp emerge Wednesday, plus a new Federal Reserve Beige Book. On Thursday, the earnings parade includes Alliance Data, American Airlines, BB&T, BONY Mellon, Briggs & Stratton, D.R. Horton, E*TRADE, GATX, Imax, KeyCorp, Mattel, Nucor, PPG, Philip Morris, Sherwin-Williams, Snap-On, Travelers Companies, Unilever, Verizon and Visa. March existing home sales figures are out Friday, along with earnings from General Electric, Honeywell International, Rockwell Collins, Schlumberger, Stanley Black & Decker and SunTrust Banks.
|% CHANGE||YTD||1-YR CHG||5-YR AVG||10-YR AVG|
|REAL YIELD||5/5 RATE||1 YR AGO||5 YRS AGO||10 YRS AGO|
|10 YR TIPS||0.32%||0.24%||-0.25%||2.31%|
Sources: wsj.com, bigcharts.com, treasury.gov – 4/28/174,5,6,7
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.
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.
- 1 – marketwatch.com/story/inflation-falls-for-first-time-in-13-months-cpi-shows-2017-04-14 [4/14/17]
- 2 – investing.com/economic-calendar [4/14/17]
- 3 – google.com/finance?q=INDEXDJX%3A.DJI&ei=4PbwWNn_O8-w2AbUyJ7ICQ [4/14/17]
- 4 – markets.wsj.com/us [4/14/17]
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- 5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F13%2F12&x=0&y=0 [4/14/17]
- 5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F13%2F12&x=0&y=0 [4/14/17]
- 5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F13%2F07&x=0&y=0 [4/14/17]
- 5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F13%2F07&x=0&y=0 [4/14/17]
- 5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F13%2F07&x=0&y=0 [4/14/17]
- 6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/14/17]
- 7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/14/17]