Weekly Market Review - April 17, 2019

Weekly Market Review - April 17, 2019

by Chad Hassinger on Apr 17, 2019

By Bradley J. Rathe, AIF®
Chief Investment Officer

April 17, 2019

"When it comes to taxes, there are two types of people. There are those that get it done early, also known as psychopaths, and then the rest of us." Jimmy Kimmel

Weekly look back:
  1. Interest rate yields have fallen this year even as equity prices have risen. Consumer (CPI) and producer (PPI) inflation figures continued to show moderate inflationary pressures.  The rising oil market is putting some pressure on the headline numbers.
  2. Central banks around the world are firmly back as the most important factor to monitor to predict movement for risk assets.  The ECB affirmed last week that it will continue to be accommodative.
  3. Sentiment numbers from last week continue to show consumers concerned about future economic growth, in contrast with a strong job market and moderate inflation.
Weekly look ahead:
  1. There has been a general slowdown coming through the macro numbers the past few months and retail sales have been a key part of that.  This month retail sales are expected to reverse the trend and show a solid .8% advance, which would go a long way to show that the economy is regaining its momentum.
  2. Housing data has looked better recently, as interest rates have decreased.  Housing starts and permits numbers are being released on Friday and are expected to continue this favorable trend.
  3. Industrial production is expected to bounce higher after being flat during the past 6 months.  The manufacturing sector is critical to the President's agenda.
World Macro highlights for this week: 

Tuesday: Industrial Production and Capacity Utilization
Thursday: Retail Sales, Philly Fed, LEI
Friday: Housing Starts

2018 Yearly Index Returns as of 4/12/2019

S&P 500 

16.58%

Europe Equity

14.32%

Emerging Equity

15.00%

US 10 Yr

-.13 bp

US Small Cap Stocks

18.08%

 

Graph Of The Week

Capacity Utilization is a central metric to monitor threats of future inflation. Expectations are an increase to 79.2%.

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