 How are the markets doing this week?
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Weekly Economic Update
June 12, 2017
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The Markets (as of market close June 9, 2017)
The major indexes produced mixed results last week. The large-cap Dow gained a little, while the small-cap Russell 2000 jumped over 1.0% by last week’s end. On the other hand, tech stocks took a hit as the Nasdaq fell over 1.5%. Long-term bond prices fell last week as evidenced by the 4-basis-point jump in the yield of 10-year Treasuries. It’s hard to tell what impact, if any, the domestic (Comey testimony) and foreign (UK election) political developments may have had on the market.The price of crude oil (WTI) fell back last week, closing at $45.90 per barrel, down from the prior week’s closing price of $47.74 per barrel. The price of gold (COMEX) decreased last week, closing at $1,268.80 by late Friday afternoon, down from the prior week’s price of $1,281.50. The national average retail regular gasoline price increased to $2.414 per gallon on June 5, 2017, $0.008 higher than the prior week’s price and $0.033 more than a year ago.
Last Week’s Headlines
- Activity has slowed in the non-manufacturing sector in May, according to the Institute for Supply Management. The non-manufacturing sector, which includes such industries as real estate, accommodations, food, arts and entertainment, and health care, grew for the 89th consecutive month, but at a slower pace than the prior month. According to the Non-Manufacturing ISM® Report On Business®, new orders, business activity, and prices all showed a slower rate of growth compared to April. Only employment grew at a faster pace.
- According to the Job Openings and Labor Turnover (JOLTS) report, there were 6.0 million job openings in April. Job openings increased in a number of industries, with the largest increase occurring in accommodation and food services (+118,000). Job openings decreased in durable goods manufacturing (-30,000). The number of job openings increased in the Midwest and Northeast regions. The number of job hires decreased by 253,000 to 5.1 million. Hires decreased in health care and social assistance (-68,000) and real estate and rental and leasing (-23,000). The number of hires decreased in the West region. Total separations (turnover) edged down 225,000 to 5.0 million in April. Total separations increased in state and local government education (+17,000) but decreased in retail trade (-100,000). Over the 12 months ended in April, hires totaled 62.9 million and separations totaled 60.7 million, yielding a net employment gain of 2.2 million.
- Following last week’s election, the UK’s ruling Conservative Party lost its parliamentary majority. How this development will impact the Brexit remains to be seen, but indications are that negotiations will push ahead even though the political strength of Prime Minister May has been weakened.
- In the week ended June 3, the advance figure for seasonally adjusted initial claims for unemployment insurance was 245,000, a decrease of 10,000 from the previous week’s revised level. The advance seasonally adjusted insured unemployment rate remained at 1.4% for the eighth consecutive week. For the week ended May 27, there were 1,917,000 receiving unemployment benefits, a decrease of 2,000 from the previous week’s level, which was revised up 4,000.
BWFA Eye on the Week Ahead
The big news this week surrounds the FOMC meeting and whether interest rates will be increased. The Committee held off on an interest rate hike in May and appeared primed to jack up rates in June. However, major economic indicators, such as consumer prices, consumer spending, the GDP, and the employment sector, have not been especially strong, leading to speculation that at least some members of the Committee may be inclined to hold rates as is until steadier economic progress is evident.
While watching the week in and week out machinations in the US and world economies, which are dutifully reported on by the mass media, BWFA continues to look for the strongest areas of the markets while adhering to our long term strategy, including category and individual security model allocations to properly diversify clients’ portfolios. Enjoy the week ahead!
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Asset Protection:
You Can’t Take it With You,
but You Can Protect it From
“The Bad Guys”
Thursday, June 15, 2017
6:00 PM – 7:30 PM
Dinner will be provided
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Presented by:
Managing Director,
Wealth Management
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Join BWFA and guest speaker, Gary Greenwald, for a round table discussion on asset protection for surviving spouses and children.
- If your spouse survives you, would you like to shield the assets you leave him or her from creditors?
- Is your child good at handling money?
- If your child inherited your assets, are you concerned that the inheritance will be spent quickly?
Join us as we discuss these topics and more!
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BWFA Sponsors Columbia’s 50th Birthday Summer Concert
Wednesday, June 21, 2017
7:00 PM – 9:00 PM
Downtown Columbia
The New Chrysalis at
Merriweather Post Pavilion
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Salute to John Williams, highlights from The Music Man, hits by the Beatles, a piece written for Columbia by Morton Gould, and the ultimate outdoor classic: the 1812 Overture! Come sing “Happy Birthday” to great city with a great orchestra.
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Retirement Planning:
The 5 Years Before You Retire
Tuesday, June 27, 2017
11:45 AM – 1:00 PM
Lunch will be provided
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Presented by:
Managing Director,
Wealth Management
Thad Ismart,
CFP®
Senior Financial Planner
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Will you be prepared to retire?
Join BWFA as we discus Emily Guy Birken’s book, The 5 Years Before You Retire: Retirement Planning When You Need it the Most.
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Roth vs Traditional IRA?
Which is right for you?
Thursday, July 6, 2017
11:45 AM – 1:00 PM
Lunch will be provided
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Presented by:
Managing Director,
Wealth Management
Thad Ismart,
CFP®
Senior Financial Planner
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Roth IRA’s and 401(k)s can be extremely beneficial for retirement investors.This BWFA workshop will show you how to take advantage of both of them.
This discussion will include:
- Positioning your assets before you retire
- Reducing your taxes during retirement
- Extending the life of your financial assets
- Creating tax planning flexibility during retirement
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Savvy Social Security Planning:
Maximizing your Benefits
Thursday, July 13, 2017
11:45 AM – 1:00 PM
Lunch will be provided
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Presented by:
Managing Director,
Wealth Management
Thad Ismart,
CFP®
Senior Financial Planner
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Baltimore Washington Financial Advisors invites you to a discussion on:
- How work, age and marital status affect your benefits
- Synchronizing spousal benefits
- Minimizing taxes on your benefits
- Integrating social security with other retirementincome
Come join us ans we discuss these issues and more!
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Selecting your State of Residence in Retirement
Tuesday, July 25, 2017
6:00 PM – 7:30 PM
Dinner will be provided
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Presented by:
Managing Director,
Wealth Management
Thad Ismart,
CFP®
Senior Financial Planner
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Baltimore Washington Financial Advisors invites you to a discussion on:
- What state is best?
- How much will it cost to stay in Maryland?
- How to decide where you will retire
- Should you purchase or rent?
- Healthcare costs by state
- Differences in state and local income taxes
- Estate planning and estate taxes by state
- Property and sales tax by state
- Cost of living by state
Come join us ans we discuss these issues and more!
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