Money Talks – February 27, 2016

This week on “Money Talks,” Managing Associate Shawna Theriault, CFP®, C.P.A. joins Matt Hames, CTFA, and Troy Harmon, CFA, CVA, to discuss the week’s market movements, Consumer Confidence, the Consumer Price Index, a review of earnings by sector and how banks are reacting to interest rate movements.  In this week’s case study, Shawna and Matt discuss a situation about a professional who is interested in going back to school as an adult. The experts look at the cost of going back to school, her options to pay for school and some mistakes she should avoid. The experts also answer listeners’ questions on investing using a stop-loss strategy, domain and web hosting company GoDaddy, Inc., Roth IRA conversions and how interest rates affect inflation.

Market Roundup: Week Ends with Marginal Gains

The week saw a mixed bag of information from some major economic sectors, which may have influenced the equities markets to record some marginal gains by week’s end. On Monday, both the Dow Jones Industrial Average and the S&P 500 indices increasing 1.4% to reach more than six-week highs, despite the day coming in as the second lowest volume trading day for the year. The gains were nearly wiped out the next day when there was speculation about energy-company loan defaults. Energy companies fell sharply after Saudi Arabia’s oil minister said not to expect production cuts. The falling oil prices created a drag on shares of exploration-and-production companies, with energy stocks in the S&P 500 falling 3.2%. By mid-week, U.S. stocks rose, recovering from earlier losses as oil prices turned higher. The rebound was broad-based, with nearly every S&P 500 sector eking out a gain. In economic news, the latest report from the Bureau of Economic Analysis showed consumers increased spending in January, as personal spending increased 0.5% from December. New orders for durable goods rose 4.9% in January, following a steep decline in December. The important details on core capital goods were positive overall, with orders up 3.9% and shipments down just 0.4%.