Weekly Market Review - July 17, 2018

Chad Hassinger |
Categories
Finance

By Bradley J. Rathe, AIF®
Chief Investment Officer

July 17, 2018

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

Weekly look back:
  1. PPI (Producer Inflation) and CPI (Consumer Inflation) came in higher than expected with headline consumer up 2.9% and headline producer up 3.4%.  These readings alongside the strong wage growth recently will keep the Federal Reserve on track to raise rates two more time this year.
  2. Consumer Sentiment came in on the low of the range at 97.1 with the high a few months ago at 100.2.  Current conditions were weak as trade war talk was cited as the main factor.
  3. Earnings start in earnest this week and should grab the torch from geopolitical news about Russia and trade wars.
Weekly look ahead:
  1. Industrial Production had a big snap back after last month's drop.  Supply snags pulled down a few of the factory numbers last month but it looks like it has been corrected and we can expect better numbers going forward.
  2. Housing related equity prices have been stagnant this year even as housing related macro data continues to be strong.  A bit surprising as housing normally stalls as interest rates rise. 
  3. Jerome Powell, the Federal Reserve Chair, testifies in front of Congress and the Senate this week.  In his first six months on the job he has handled the new role with composure and has given the market renewed confidence.
World Macro highlights for this week: 

Tuesday: Industrial Production
Wednesday: Housing starts, Beige Book
Thursday: Philly Fed, Leading Indicators, Money Supply

2018 Yearly Index Returns as of 7/13/2018

S&P 500 

5.66%

Europe Equity

-1.39%

Emerging Equity

-6.00%

US 10 Yr

+.42 bp

US Small Cap Stocks

10.47%

 

Graph Of The Week

As you can see there has been substantial volatility in the Industrial Sector however the strong upward trend is still intact. 

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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.