Weekly Market Review - September 13, 2018

Weekly Market Review - September 13, 2018

by Chad Hassinger on Sep 13, 2018

Finance

By Bradley J. Rathe, AIF®
Chief Investment Officer

"Without investment there will not be growth, and without growth there will not be employment." Muhtar Kent

Weekly look back:
  1. US Jobs picture report from last Friday looked rock-solid.  Payrolls advanced 201k and wages were so strong it has stoked inflation fears.   However, downward revisions of 50k jobs from the past two months tempered enthusiasm.
  2. ISM numbers exceeded expectations.  Services were expected to be at 56.8 and came in at 58.5 and Manufacturing expected at 57.7 and came in at 61.3.  Much of the good news came from forward looking indicators.
  3. Volatility has been on the rise the past few weeks.  Some of the key contributors is the increase in geopolitical risks, selling into strength after a good run and anticipation of democrats winning either the house or the senate.
Weekly look ahead:
  1. Retail Sales are expected to have another solid month and very important to the overall economy.
  2. Inflation fears are starting to grow as wage growth accelerated in the jobs data last week.  This week we have both Producer (PPI) and Consumer (CPI)  inflation data.  Both annualized readings are expected to be above the Federal Reserve target of 2%, PPI expected to be at 2.7% and CPI at 2.8%.
  3. Central Banks in Europe have meetings this week and are expected to keep rates stable.
World Macro highlights for this week: 

Wednesday: PPI, Beige Book
Thursday: CPI, BOE (Bank of England) and ECB (European Central Bank) meetings
Friday: Retail Sales, Industrial Production, Consumer Sentiment

2018 Yearly Index Returns as of 9/7/2018

S&P 500 

8.72%

Europe Equity

-7.05%

Emerging Equity

-11.14%

US 10 Yr

+.53 bp

US Small Cap Stocks

12.53%

 

Graph Of The Week

After a slow start to the year Retail Sales have been strong.

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