Economic Snapshot March 16, 2015

Download Economic Snapshot March 16, 2015

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  1. 1. Suite 3535, 30 East 7th Street, St. Paul, MN 55101 PHONE: (651) 829-3300 FAX: (651) 839-3301 WEB: highmarkwealth.com Jobs The Labor Department reported the U.S. job market added 288,000 jobs and the unemployment rate dropped to 6.1% in June from 6.3% in May. Initial jobless claims dccreased by 11,000 to 304,000. The Labor Department reported the four week sadkfasdfasdfasdfasdfasdfasdfasdfamoving average was 311,500. Inflation The Consumer Price Index increased 0.4% in May. The Producer Price Index had the largest increase since January 2010, closing at 0.6% in April (+2.1% y/y). Import prices decreased at a faster rate than expected, which could moderate inflation expectations goiasdfasdfasdfafdasdfasdfasdfng forward. Rates The yield on the 10-year U.S. Treasury note dropped. The Federal Open Market Committee announced bond purchases have dropped to $asdfasdf35 billion from $45 billion. Monthly mortgage-backed securities purchases will drop to $15 billion from $20 billion. The European Central Bank voted to keep the Growth The Commerce Department noted whaolesale trade increased 0.7% in May 2014. The Federal Reserve posted consumer credit increased at an annasdfasdfasdfasdfasdfasdfasdfasdfasdfasdfasdfasdfasdfasdfasdfual rate of 7.5% in May, impacted by non-revolving credit. Profits The second quarter earnings seasaasdfasdfaasdfasdfasfon started with the S&P 500 operating earnings on target to be $29.24, which embodies a 10.9a% year-over-year growth increase. According to S&P Dow Jones Indices divided net increases for U.S. domestic common stock increased $12.6 billion in second The Labor Department reported initial jobless claims dropped by 36,000 to 289,000 in the week ending March 7, 2015. The four-week moving average was 302,250. The February employment report stated nonfarm payrolls rose by 295,000 and the U.S. unemployment rate dropped by 0.2% to 5.5%. Core CPI inflation was flat for the second month in a row at 1.6% year-over-year. Headline consumer prices slipped -0.7% between Dec. and Jan., and are currently down 0.2% year-over-year. Headline inflation slipped largely due to a drop in gasoline and energy prices. Final demand producer inflation dropped further in February (-0.7% year-over-year), with weakness coming from the previous 10.3% slip in energy prices. Further illustrating deflationary pressures, import prices dropped 2.5% month-over- month impacted by a stronger dollar and falling energy prices. The 10-year U.S. Treasury Note yield dropped 0.07% to 2.13% for the week ending March 13, 2015. In Janet Yellens semi-annual testimony to Congress reaffirmed the labor markets strength and maintained that rate increases will be data dependent. She also provided more color around inflation expectations that suggest the Fed remains on track to begin policy normalization in the middle of 2015. Economic Snapshot March 16, 2015 The Commerce Department reported retail sales dropped 0.6% in February. Wholesale sales fell 3.1% and business inventories continued to remain flat in January. The second estimate of 4Q 2014 real GDP put growth at 2.2% q/q saar, under the first estimate of 2.6%. A drop in government spending and increasing trade deficit lowered 4Q GDP growth from 5.0% in 3Q 2014. The US had the strongest rise in personal consumption since 1Q 2006 with a rise of 4.2%, reflecting a rise in spending on nondurable goods and services. According to the S&P Dow Jones Indices, as of March 6, 2015, of the 492 S&P 500 Index companies reporting 4Q earnings, 338- beat analysts estimates. The S&P 500 operating earnings are estimated to be $26.67 for 4Q, representing a -5.6% year-over- year growth. Lower earnings were primarily due to low oil prices, pension write-offs and a strong dollar. Jobs Inflation Rates Growth Profits
  2. 2. Suite 3535, 30 East 7th Street, St. Paul, MN 55101 PHONE: (651) 829-3300 FAX: (651) 839-3301 WEB: highmarkwealth.com About HighMark Wealth Management HighMark Wealth Management specializes in providing customized wealth management solutions for public and private companies, high-net worth clients and their families. The firm bases its client relations on collaboration, the extensive experience of its principals and creative thinking. Every member of the team at HighMark Wealth Management is an accomplished professional, able to perform in a results-driven atmosphere and provide clients with consistent service of the highest quality. You can learn more about our firm by visiting our website, reading our blog and by subscribing to our newsletter. Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Highmark Wealth Management LLC), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Highmark Wealth Management LLC. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Highmark Wealth Management LLC is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice. If you are a Highmark Wealth Management LLC client, please remember to contact Highmark Wealth Management LLC, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services. A copy of the Highmark Wealth Management LLCs current written disclosure statement discussing our advisory services and fees is available upon request.