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Clarksville Weekly Market Snapshot from Frazier Allen for the week of October 19th, 2016

 

F&M Investment Services - Raymond James - Clarksville, TNClarksville, TN – Minutes of the September 20-21 policy meeting showed that Federal Open Market Committee members were divided on whether to raise short-term interest rates, and most of those voting to wait felt that it was “a close call.”

Financial markets have increasingly priced in a mid-December rate hike. Amid a thin economic calendar, investors focused on what’s happening in the rest of the world, but also reacted to the initial earnings reports for 3Q16.

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Frazier Allen

Retail sales results for September were a bit better than anticipated, led by a rebound in motor vehicle sales.

Higher gasoline prices also contributed. Core sales (which exclude autos, building materials and gasoline) rose modestly, consistent with a moderate pace of consumer spending growth in the third quarter.

Next week, the economic calendar picks up. The Consumer Price Index (Tuesday) should be lifted by higher gasoline prices (boosted partly by the seasonal adjustment, as gasoline prices normally fall in September).

The third presidential debate is scheduled for Wednesday night, and investors may continue to focus more on down ballot contests (House and Senate).

 

Indices

Last Last Week YTD return %
DJIA 18098.94 18268.50 3.87%
NASDAQ 5213.33 5306.85 4.11%
S&P 500 2132.55 2160.77 4.34%
MSCI EAFE 1654.37 1694.91 -3.61%
Russell 2000 1215.75 1246.24 7.03%

 

Consumer Money Rates

Last 1 year ago
Prime Rate 3.50 3.25
Fed Funds 0.40 0.13
30-year mortgage 3.56 3.82

 

Currencies

Last 1 year ago
Dollars per British Pound 1.225 1.548
Dollars per Euro 1.106 1.147
Japanese Yen per Dollar 103.71 118.83
Canadian Dollars per Dollar 1.319 1.294
Mexican Peso per Dollar 18.925 16.474

 

Commodities

Last 1 year ago
Crude Oil 50.44 46.64
Gold 1257.60 1179.80

 

Bond Rates

Last 1 month ago
2-year treasury 0.85 0.74
10-year treasury 1.78 1.69
10-year municipal (TEY) 2.62 2.40

 

Economic Calendar

October 19 Third Presidential Debate
October 28 Real GDP (3Q16, advance estimate)
November 2 FOMC Policy Decision (no press conference)
November 4 Employment Report (September)
November 8 Election Day

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.

US government bonds and treasury bills are guaranteed by the US government and, if held to maturity, offer a fixed rate of return and guaranteed principal value. US government bonds are issued and guaranteed as to the timely payment of principal and interest by the federal government. Treasury bills are certificates reflecting short-term (less than one year) obligations of the US government.

Commodities trading is generally considered speculative because of the significant potential for investment loss. Markets for commodities are likely to be volatile and there may be sharp price fluctuations even during periods when prices overall are rising. Specific sector investing can be subject to different and greater risks than more diversified investments.

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 October 13th, 2016.

©2016 Raymond James Financial Services, Inc. member FINRA / SIPC.


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