Weekly Market Review - April 17, 2018

By Bradley J. Rathe
Chief Investment Officer

April 17, 2018

"The real man smiles in trouble, gathers strength from distress, and grows brave by reflection." - Thomas Paine

Weekly look back:

1. Geopolitical risks continue to be on the rise. On Friday night the US, along with some of our allies, took action in Syria to take out much of their chemical capabilities.
2. Inflation had a modest rise last month for producers and consumer inflation was lower from the fall in gasoline. Central banks around the world have been on edge worrying about future inflation pressures however last week did not support their concerns.
3. FOMC minutes last week revealed the Fed's desire to move from accommodative to neutral. They cited moderate inflation however they still see it moving towards their target of 2%.

Weekly look ahead:

1. Retail Sales reported a solid number on Monday morning.  Many had started to worry that debt levels for consumers would make it hard for the consumer to move spending back up. 
2. Earnings start in earnest this week with Alcoa kicking off earnings on Wednesday.  Markets have been mainly driven by other factors besides fundamentals however this week it should put it back in focus.
3. Industrial Production rose a solid .5% with mining and utilities having a good month.  Tariffs on steel and aluminum don't appear to have a measurable effect in the report.

World Macro highlights for this week: 

Monday: Retail Sales, Empire State Mfg. Survey
Tuesday: Industrial Production, Housing Starts
Thursday: Philly Fed, Leading Economic Indicators

Graph Of The Week

Retail Sales have been weak the past three months. 

Unless otherwise expressly indicated, the opinions or views expressed in this article are the author's own and do not reflect, and may differ from, the opinions or views of Strategic Financial Group, LLC or others within Strategic Financial Group, LLC, including its officers, managers, owners, employees or other service providers.