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Clarksville Weekly Market Snapshot from Frazier Allen for the week of August 14th, 2016

F&M Investment Services - Raymond James - Clarksville, TNClarksville, TN – The economic data remained consistent with moderate economic growth and low inflation. Retail sales figures for July disappointed, coming in below expectations (but partly offset by upward revisions to June).

Preliminary productivity figures for the second quarter were weak (averaging a 0.5% annual rate over the last five years). Jobless claims remained very low. The Producer Price Index fell more than expected and pipeline pressures remained mild or slightly deflationary.

Frazier Allen
Frazier Allen

Despite nervousness about the U.S. and global economies, and amid political uncertainty, the DJIA, the S&P500 and the NASDAQ composite all finished at record highs – the first simultaneous record close this century. The soft retail sales data and low PPI help keep long-term interest rates low.

Next week, the important economic data bunch up on Tuesday. But while these data reports will help to fill in the current picture, they should not have a big impact on the overall economic outlook.

Market participants will be focused on the Fed policy meeting minutes. We know that Fed officials are split, but the majority is in no hurry to raise short-term interest rates. The next major pivot point will be Fed Chair Yellen’s Jackson Hole speech on August 26th.


Last Last Week YTD return %
DJIA 18613.52 18352.05 6.82%
NASDAQ 5228.40 5166.25 4.41%
S&P 500 2185.79 2164.25 6.94%
MSCI EAFE 1708.32 1663.50 -0.46%
Russell 2000 1229.12 1213.76 8.21%


Consumer Money Rates

Last 1 year ago
Prime Rate 3.50 3.25
Fed Funds 0.40 0.15
30-year mortgage 3.40 3.94



Last 1 year ago
Dollars per British Pound 1.296 1.561
Dollars per Euro 1.114 1.116
Japanese Yen per Dollar 101.96 124.21
Canadian Dollars per Dollar 1.299 1.298
Mexican Peso per Dollar 18.229 16.279



Last 1 year ago
Crude Oil 43.49 43.30
Gold 1350.00 1123.60


Bond Rates

Last 1 month ago
2-year treasury 0.73 0.67
10-year treasury 1.54 1.54
10-year municipal (TEY) 2.22 2.15


Treasury Yield Curve – 08/12/2016

As of close of business 08/11/2016

Treasury Yield Curve - 08-12-2016


Economic Calendar

August 15 Empire State Manufacturing Index (August)
Homebuilder Sentiment (August)
August 16 BOE Policy Decision
Consumer Price Index (July)
Building Permits, Housing Starts (July)
Industrial Production (July)
August 17 FOMC Minutes (July 26-27)
August 18 Jobless Claims (week ending August 13)
Philadelphia Fed Index (August)
Leading Economic Indicators (July)

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 August 11th, 2016.

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

Frazier Allen
Frazier Allenhttp://www.raymondjames.com/frazierallen
Frazier Allen, WMS, CRPS, Financial Advisor with F&M Bank 50 Franklin Street | Clarksville, TN 37040 | 931-553-2048

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