Weekly Market Review - February 20, 2018

Chad Hassinger |

By Bradley J. Rathe
Chief Investment Officer

February 20, 2018

"Someone is sitting in the shade today because someone planted a tree a long time ago." - Warren Buffett

Weekly look back:
  1. Stocks sprang back with their best weekly gain since November 2016, leaving most broad stock indices now positive on the year again.
  2. Inflation data last week showed that the ongoing concern may be warranted. Consumer inflation rose a strong .5% on the month and 2.1% for the year. Producer Inflation was more muted.
  3. Retail Sales were soft in January, and December was revised down as well. The December revision turns a holiday period from solid to mediocre. High consumer debt levels might be to blame.
Weekly look ahead:
  1. Quiet week for macro numbers. Earnings will be in focus with more than 800 reporting. Overall, earnings have been solid for the last quarter with some confusion on how the new Tax Policy will affect future earnings.
  2. The Federal Reserve will be back in focus along with new Fed Chair Jerome Powell with FOMC minutes and the Fed Balance sheet reporting. ECB also releases their minutes on Thursday.
  3. Existing Home sales ended 2017 on a high note. However, inventory is at a 19 year low, and this is the beginning of the home buying season so expectations are for a slight pullback.
World Macro highlights for this week: 

Wednesday: Existing Home Sales, FOMC Minutes
Thursday: LEI (Leading Economic Indicators), Fed Balance Sheet
Friday: Baker Hughes Rig Count

Graph Of The Week

Strong Retail Sales are critical to having a robust economy, so a rebound in retail sales will be key to watch for in the coming 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.