Money Talks – June 18, 2016

This week on “Money Talks,” Managing Associate D.J. Barker, CWS®, joins Matt Hames, CTFA, and Nick Antonucci to discuss the market’s reaction to the week’s economic news, including the Federal Open Market Committee’s decision to keep its benchmark lending rate steady and the readings from May’s Producer Price and Consumer Price indices. The experts also delve into a case study about spending in retirement versus leaving all of your wealth to your children. The hosts also address listeners’ questions on high-end retailers Kate Spade, Michael Kors and Ralph Lauren in addition to questions about Microsoft’s acquisition of LinkedIn, paying off debt versus investing a windfall and comparing mutual funds.

Market Roundup: Markets Suffer Down Week on Declining Oil Prices and FOMC Meeting

The markets began the week in the red zone as investors likely proceeded with caution ahead of Tuesday’s Federal Open Market Committee meeting. Crude oil slipped for the third straight session, with West Texas Intermediate crude dipping 0.4%, settling at $48.88 a barrel. The slip continued the next day with Financial stocks leading declines for the S&P 500 Index. Stocks retreated on a downswing in crude oil, which settled at $48.49 a barrel. Meanwhile, Commerce Department data showed retail sales climbed by a stronger-than-expected 0.5 percent in May. Discounting sales of autos and gasoline, sales increased by 0.3 percent. Stocks traded lower on Wednesday in the wake of comments from the Federal Open Market Committee meeting. Interest rates will remain unchanged for the time being, but there may be as many as two rate increases by the end of the year. In economic news, the Producer Price Index edged up by 0.4% in May, versus consensus expectations of a 0.3% climb. The core measure jumped by 0.3%. Stocks recovered a little on Thursday in late-day trading, despite West Texas Intermediate crude oil slipping 3.8% settling at $46.21 a barrel. The Consumer Price Index rose by 0.2% in May, versus a 0.4% gain in April. The core measure, which discounts food and energy, edged up by 0.2%. Additionally, Labor Department figures showed new claims ramped up by 13,000 to 277,000. Indices closed in red territory on Friday, with Technology and Healthcare stocks leading the downswing; however, West Texas Intermediate crude increased 3.8% to settle at $47.98 a barrel.