« Older: Fort Campbell MWR Bench Press Competition Series at Estep Wellness Center Newer: Clarksville Police report Traffic collision with Fatality »
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.Stocks fell sharply on Thursday, with no apparent catalyst (other than the old adage: “sell on Rosh Hashanah, buy on Yom Kippur”).
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.
Consumer Money Rates
Treasury Yield Curve – 9/26/2014
S&P Sector Performance (YTD) – 9/26/2014
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.
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.
Frazier Allen, WMS, CRPS, Financial Advisor with F&M Bank
Web Site: http://www.raymondjames.com/frazierallen
TopicsBritish Pound, Clarksville, Clarksville TN, Crude Oil, DJIA, Employment Report, Euro, F&M Investment Services, Fed, Federal Reserve, GDP, gold, Gross Domestic Product, ISM Manufacturing Index, Janet Yellen, Japan, Japanese Yen, Mexican Peso, Mortgage Rates, MSCI EAFE, Nasdaq, Oil Prices, Raymond James Investment Services, Russell 2000, S&P 500, U.S. Stock Market, Weekly Market Snapshot
© 2006-2021 Clarksville, TN Online is owned and operated by residents of Clarksville Tennessee.