Clarksville Weekly Market Snapshot from Frazier Allen for the week of September 28th, 2014

Clarksville, TN – The economic data were mixed. The estimate of second quarter gross domestic product (GDP) growth was revised upward from 4.2% to 4.6%, as expected.

Existing home sales fell in August, reflecting a decline in speculators (i.e., fewer all-cash transactions). New home sales surged 18.9%, but that likely reflects the usual volatility in the data.

Durable goods orders fell 18%, reflecting an unwinding of July’s sharp spike in civilian aircraft orders. The three-month averages of shipments and orders for nondefense capital goods (ex-aircraft) suggest good strength in business fixed investments.

Next week, the economic data will be more important and should help to fill in the picture for the third quarter, and Friday’s employment figures will set the near-term economic outlook. Personal income and spending should be consistent with moderately strong growth in consumer spending.

The ISM Manufacturing Survey should show relative strength. Nonfarm payrolls were restrained in July by a seasonal quirk in autos and by labor strife at a New England grocery chain. Those impacts should reverse, adding 25,000 to 30,000 to the payroll figure for September.

Seasonal adjustment is hard in September due to the start of the school year and an end to summer jobs. The unemployment rate should be flat or slightly lower.

Important Disclosures

Past performance is not a guarantee of future results. There are special risks involved with global investing related to market and currency fluctuations, economic and political instability, and different financial accounting standards. The above material has been obtained from sources considered reliable, but we do not guarantee that it is accurate or complete. There is no assurance that any trends mentioned will continue in the future. While interest on municipal bonds is generally exempt from federal income tax, it may be subject to the federal alternative minimum tax, state or local taxes. In addition, certain municipal bonds (such as Build America Bonds) are issued without a federal tax exemption, which subjects the related interest income to federal income tax. Investing involves risk and investors may incur a profit or a loss.

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Tax Equiv Muni yields (TEY) assume a 35% tax rate on triple-A rated, tax-exempt insured revenue bonds.

Material prepared by Raymond James for use by its financial advisors.

The information contained herein has been obtained from sources considered reliable, but we do not guarantee that the foregoing material is accurate or complete. Data source: Bloomberg, as of close of business September 25th, 2014.

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