fbpx

Weekly Economic Update: August 21, 2017

Weekly Economic Update
August 21, 2017
The Markets (as of market close August 18, 2017)
 
Last week saw domestic and global conflicts heighten investors’ concerns, pushing stocks lower in what was a slow week for trading. The Dow lost over 270 points last Thursday, offsetting robust gains the prior Monday. The S&P 500 fell 0.65%, while the Nasdaq dropped .64% last week. Once again, the biggest fall struck the small-cap Russell 2000, which lost 1.20% for the week and is essentially at its 2016 year-end closing value, having lost all of the gains amassed during 2017. Long-term bond prices remained the same as the yield on 10-year Treasuries was unchanged from the prior week.
The price of crude oil (WTI) closed at $48.73 per barrel, down slightly from the prior week’s closing price of $48.79 per barrel. The national average retail regular gasoline price increased for the fourth week in a row to $2.384 per gallon on August 14, 2017, $0.006 higher than the prior week’s price and $0.235 more than a year ago.
Last Week’s Economic Headlines
  • The dollar is declining in value, which is good news for exporters but not so good for importers. July’s import and export prices report shows that both import and export prices increased over the prior month. Import prices increased 0.1% as petroleum imports jumped 0.7%. Export prices climbed 0.4% following a -0.2% fall in June. Export prices were helped by a 2.1% spike in prices for agricultural products.
  • The momentum created in June for new home construction did not carry over to July. According to the latest figures from the Census Bureau, building permits (-4.1%), housing starts (-4.8%), and housing completions (-6.2%) each decreased from their respective June rates. A slowdown in home building will not help an already dwindling supply and could prove to be a drag on overall economic growth.
  • According to the latest report from the Federal Reserve, industrial production rose 0.2% in July following an increase of 0.4% in June. Overall, total industrial production was 2.2% above its year-earlier level. In July, manufacturing output edged down 0.1%; the production of motor vehicles and parts fell substantially, but that decrease was mostly offset by a net gain of 0.2% for other manufacturing industries. The indexes for mining and utilities in July rose 0.5% and 1.6%, respectively.
  •  In the week ended August 12, the advance figure for seasonally adjusted initial claims for unemployment insurance was 232,000, a decrease of 12,000 from the previous week’s unrevised level. The advance seasonally adjusted insured unemployment rate remained 1.4%, unchanged from the previous week’s unrevised rate. During the week ended August 5, there were 1,953,000 receiving unemployment insurance benefits, a decrease of 3,000 from the previous week’s revised level. The previous week’s level was revised up 5,000 from 1,951,000 to 1,956,000.
BWFA Eye on the Week Ahead
 
Stocks were unable to shake a recent slump last week. A week without violence would go a long way toward quelling investor concerns and pushing equities higher. On the economic front, the housing sector is an important gauge of economic momentum. In the first quarter, sales of new and existing homes were robust. However, lack of inventory and rising prices have stymied sales during the second quarter. High demand for housing may be a sign that people are comfortable enough with their financial situation to make a large purchase. However, the lack of inventory means builders can’t keep up with the demand for new housing, and home owners aren’t inclined to sell their current homes. This week’s reports on sales of new and existing homes in July may shed some light on whether sales are picking up or lagging. At BWFA, we continue to favor certain sectors like Technology, Healthcare & Financials while we still remain bearish on Energy, Telecom & Retail. As always we cherish the opportunity we have to work for our clients.
 Don’t Forget!

Click Here to Vote for Best of Howard County

Selecting an Assisted Living Facility/Community with Elville and Associates
 
Thursday, August 24, 2017
11:45 AM – 1:00 PM
Lunch will be provided


10 SEATS REMAINING!

Reserve your spot today!!

Presented by:
Townsend Hornor, Jr.
Managing Director,
Wealth Management
Steve Elville
Principal
Elville & Associates 
Baltimore-Washington Financial Advisors invites you to this interactive workshop on “Selecting an Assisted Living Facility/Community.”
Topics to include:
  • Broad overview of assisted living options
  • Challenges associated with downsizing
  • Cost, amenities, financial stability and quality of care
  • Reputation, residents rights, estate planning consideration
  • Long-term care skilled nursing concerns
  • Estate planning considerations
Come join us as we discuss these issues and more!
Selecting your State of Residence in Retirement
 
Tuesday, August 29, 2017
6:00 PM – 7:30 PM
Dinner will be provided
**SOLD OUT**
If you would like to be put on the wait list, please email Eve Kennedy at ekennedy@bwfa.com
 
OR
 
Next session to be held on 
Tuesday, September 19, 2017
11:45 AM – 1:00 PM
 
 
Presented by:
Townsend Hornor, Jr.
Managing Director,
Wealth Management

Thad Ismart,  

CFP®

 
Senior Financial Planner

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 as we discuss these issues and more!
What Happens When a Loved One Passes Away?
 
Thursday, September 7, 2017
11:45 AM – 1:00 PM
Lunch will be provided
 
Limited Seating Available!
Reserve your spot today!
 
Presented by:
Townsend Hornor, Jr.
Managing Director,
Wealth Management

Gary Greenwald, Esq.

Attorney
Baltimore Washington Financial Advisors invites you to a discussion on:
  • What are the first things we should do?
  • What happens if he/she has done no estate planning?
  • What do you do with his/her will or trust?
  • Should I continue to pay his/her bills?
  • What should you do with his/her home?
  • What is involved in settling a will or trust?
  • Can a will or trust be contested?
Come join us as we discuss these issues and more!
PART ONE: The Difference Between Alzheimer’s and Dementia with Guest Speaker Penny Graf
Tuesday, September 12, 2017
11:45 AM – 1:00 PM
Lunch will be provided
 
PART TWO: Corporate Trust Services
With Special Speaker Steve Elville
Thursday, September 28, 2017
11:45 AM – 1:00 PM
Lunch will be provided
Presented by:
Townsend Hornor, Jr.
Managing Director,
Wealth Management

 

Steve Elville, Esq. 
Principal
Elville and Associates
 
Penny Graf LCSW-C, 
C-ASWCM, OSW-C
 Eldercare 
 
Part One
Part Two
 
We Encourage you to register early for one of both sessions!! Limited Seating Available!
Baltimore Washington Financial Advisors, Elville and Associates along with Ferretto Eldercare Consulting, invite you to this interactive, 2 -part Seminar Series on “Alzheimer’s vs. Dementia” and  “How Corporate Trust Services could benefit you”
Topics Included in Part One:
  • Many types of dementia’s – no one size fits all
  • A thorough medical evaluation is key
  • Gather the team
Topics included in Part Two:
  • What is a Personal Trust?
  • What are some reasons to consider appointing a corporate trustee?
  • What should you be concerned about “successor trustee risk?”
Come join us as we discuss these issues and more!
Savvy Social Security & Planning
 
Thursday, September 14, 2017
6:00 PM – 7:30 PM
Dinner will be provided
RESERVE YOUR SPOT TODAY!!
Limited seats available!


Presented by:
Townsend Hornor, Jr.
Managing Director,
Wealth Management

Thad Ismart,   

CFP®

  
Senior Financial Planner

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 retirement income
Come join us as we discuss these issues and more!
Selecting your State of Residence in Retirement
 
Tuesday, September 19, 2017
11:45 AM – 1:00 PM
Lunch will be provided
Sign up today and secure your spot!!!
Limited Seats available! 
 
Presented by:
Townsend Hornor, Jr.
Managing Director,
Wealth Management

Thad Ismart,  

CFP®

 
Senior Financial Planner

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 as we discuss these issues and more!

What You Need to Know About Retirement –   

Before You Retire
 
Tuesday, September 21, 2017
06:00 PM – 7:30 PM
Dinner will be provided
Sign up today and secure your spot!!!
Limited seats available!
 
Presented by:
Townsend Hornor, Jr.
Managing Director,
Wealth Management

Thad Ismart,  

CFP®

 
Senior Financial Planner

Baltimore Washington Financial Advisors invites you to a discussion on:
  • Avoiding the common mistakes
  • Have you saved enough?
  • Creating a vision- where will you live, what will you be doing, who will you live near?
  • Evaluating your retirement savings
  • Social Security
  • Healthcare options/choices
  • Creating a retirement paycheck
  • Tax implications
  • Asset Allocation Strategies for retirement
Come join us as we discuss these issues and more!
Estate Planning: How to Avoid Probate Court
with guest speaker
Gary Greenwald, P.C.
 
Tuesday, September 26, 2017
06:00 PM – 7:30 PM
Dinner will be provided
Sign up today and secure your spot!!!
Limited seats available!
 
Presented by:
Townsend Hornor, Jr.
Managing Director,
Wealth Management

Gary Greenwald, Esq

Baltimore Washington Financial Advisors invites you to an estate planning workshop on:
  • Avoid the time and expense of probate upon your death
  • Reduce the cost of settling your affairs upon your death by 60%-70%
  • Be confident that you, and not some court, determines who will be in charge of your assets upon disability or death
  • Make sure that if your surviving spouse remarried, the assets you left to him or her pass to your children and grandchildren, and not to his or her new spouse
  • Reduce any estate taxes when you die
  • Shield the inheritance you are leaving to your children from their creditors and the divorce court
Come join us as we discuss these issues and more!
Facebook
Twitter
Pinterest