The markets kicked off the week with gains as the Dow Jones Industrial Average and S&P 500 Index hit new record levels. Technology and Energy stocks led advancers as U.S. prices jumped 1.1% to settle at $57.99 a barrel. Trading was mixed on Tuesday, but both the Dow and S&P 500 closed at new record highs for the third straight session while the NASDAQ dipped into the red zone. In economic news, U.S. producer prices ticked up in November. The Bureau of Labor Statistics showed producer prices climbed 0.4% last month. Core prices, which discount food, energy, and trade, also rose 0.4%. Mixed moves continued mid-week. The Dow and NASDAQ posted gains on monetary policy commentary from the Federal Reserve meeting while the S&P 500 lost some ground. As anticipated, the Federal Open Market Committee lifted the target range for the fed funds rate by 25 basis points to 1.25% to 1.5%. The Bureau of Labor Statistics released their second report for the week, showing consumer prices edged up in November. The headline reading of the Consumer Price Index increased 0.4% last month, as expected. The core measure, which discounts food and energy, rose 0.1%, just shy of consensus expectations. The major indices closed in the red zone on Thursday with early market momentum fading as the session progressed. The Department of Labor reported initial jobless claims decreased last week, falling by 11,000 to 225,000 versus consensus forecasts of 235,000. On another note, retail sales ticked up in November. Sales rose 0.8% last month, exceeding expectations of 0.3% growth. Major indices closed trading at all-time record levels on Friday with Technology and Financial stocks leading the advance.
The “Money Talks” hosts address listeners’ questions on Chinese interactive online community operator NetEase and how tax reform may affect the market in 2018. They also address concerns from an employee whose employer filed Chapter 11 bankruptcy. The experts explain the bankruptcy proceedings and ease his fears about the safety of his 401(k).
This week on “Money Talks” Troy Harmon, CFA, CVA, covers the market news, including Technology’s current run, the ISM Manufacturing and Services indices, Factory Orders, and International Trade with managing Associate Shawna Theriault, C.P.A., CFP®, CDFA®. Later in the show, Shawna is joined by Principal Jennifer Thomas, CFP®, when they interview Shari Martin, Executive Director of The Cobb Community Foundation. They discuss what the Cobb Community Foundation does, including sponsoring donor advised funds for philanthropic families and organizations. Shawna and Troy round out the show with a listener’s question on web hosting service provider GoDaddy, Inc.
Principal Jennifer Thomas, CFP®, and Managing Associate Shawna Theriault, C.P.A., CFP®, CDFA®, interview Shari Martin, Executive Director of The Cobb Community Foundation. They discuss how Cobb Community Foundation sponsors donor advised funds for philanthropic families and organizations. Additionally, they discuss the Cobb Community Impact Grant as well as the other types of charitable funds they sponsor.
The week began on a mixed note with the Dow Jones Industrial Average gaining while the S&P 500 index was off a few points. Indices closed in the red zone on Tuesday, when early market momentum faded during afternoon trading. In economic news, the Census Bureau reported that the international trade deficit increased $3.8 billion to $48.7 billion in October over September. The October increase in the goods and services deficit reflected an increase in the goods deficit of $3.8 billion to $69.1 billion and a decrease in the services surplus of less than $0.1 billion to $20.3 billion. Additionally, the ISM Non-Manufacturing index dipped from 60.1 in October to 57.4 for November. Markets were again mixed on Wednesday, this time with both the Dow and S&P closing in the red while the NASDAQ posted slight gains on a rebound the Technology sector. However, gains in the Technology sector failed to offset losses in the Energy sector. West Texas Intermediate crude oil shed 2.9% today after Energy Information Administration data showed crude-oil inventories fell by 5.6 million barrels in the last week, which was more than expected. Indices closed with gains on Thursday and bounced again on Friday, closing at new record highs. A stronger than expected jobs report may have helped push the Dow and S&P 500 to positive territory. Department of Labor figures showed U.S. employers added 228,000 jobs in November. The results exceeded estimates of 190,000. Additionally, consumer confidence is on the wane for December, as the University of Michigan’s consumer sentiment index’s preliminary reading fell to 96.8 from 98.5 in November. Economists were expecting a jump to 99.
This week on “Money Talks,” Bil Lako, CFP®, and Troy Harmon, CFA, CVA, are joined by insurance expert Jim Crone, CLU®, CFS®, to discuss the week’s market movements, market dips and corrections, as well as the yield curve in Treasurys. Jim brings to the table a case study of a couple who need insurance for protection purposes, but they are being offered a policy that is trying to accomplish too many goals and contains too many features. Jim explains that going back to the financial plan to determine the insurance need is the best strategy. The experts round out the show with listeners’ questions on annuity retirement income and disability insurance riders. They also provide advice for an inherited 401(k), discuss the rally in Bitcoin, and give their opinions on stocks Whirlpool and Sleep Number.
Bil Lako, CFP®, and Troy Harmon, CFA, CVA, are joined by insurance expert Jim Crone, CLU®, CFS®, to discuss a case study of a couple who need insurance for protection purposes, but they are being offered a policy that is trying to accomplish too many goals and contains too many features. Jim explains that going back to the financial plan to determine the insurance need is the best strategy.
The indices kicked off the week with mixed action as the Dow Jones Industrial Average posted gains while the S&P 500 Index and NASDAQ dipped on a variety of economic news. New-home sales ticked up in October with sales rising 6.2% from the revised September rate and increased 18.7% from October 2016. New record levels were hit on Tuesday, as stocks stepped up on progress in the GOP tax bill. Reports that the Senate was close to passing a tax reform bill likely increased investor confidence. Meanwhile, The Conference Board’s Consumer Confidence was up in November, climbing to 129.5, from 125.9 in October. Furthermore, the trade gap increased at a faster rate than expected in October, as data showed the deficit hit $68.3 billion last month, following a reading of $64.1 billion in September. The Dow closed at a new record peak on Wednesday with Financial shares leading advancers and Technology stocks sold off. Meanwhile, the NASDAQ and S&P 500 shed points. In a new estimate, third quarter U.S. GDP was revised up to 3.3% from the prior estimate of 3.0%. The result exceeded an expected upward revision to 3.2%. On separate note, the Federal Reserve’s Beige Book, which covers economic activity in October through mid-November, showed the economy expanded at a modest-to-moderate pace in all 12 districts. Good news continued Thursday with the Dow closing above 24,000 for the first time and the S&P 500 climbed to a new record level. Technology brands rebounded from Wednesday’s dip. Meanwhile, crude oil prices ticked up on OPEC news that the organization and other oil-producing nations have agreed to extend a production cut agreement through to the end of 2018. Despite the record highs during the week, indices dipped on Friday. Stocks rebounded up off session lows, but not enough to escape the red zone for the day. Technology brands sold off while Energy stocks ticked up on a jump in crude oil prices. In the week’s last economic report, the ISM manufacturing index fell from 58.7 in October to 58.2 in November, versus expectations of a lesser drop to 58.4.