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Clarksville Weekly Market Snapshot from Frazier Allen for the week of September 4th, 2016

F&M Investment Services - Raymond James - Clarksville, TNClarksville, TN – The August Employment Report was a little light of expectations. Nonfarm payrolls rose by 151,000 (median forecast: +180,000), with a net revision to June and July of only -1,000. Private-sector payrolls rose by 126,000 – a +150,000 average over the last six months (vs. +221,000 in 2015 and +240,000 in 2014).

The unemployment rate held steady at 4.9% (vs. 5.1% a year ago). Average weekly hours fell (and hours for July were revised lower). Average hourly earnings rose just 0.1%, up 2.4% y/y.

Frazier Allen
Frazier Allen

The ISM Manufacturing Index fell more than expected in August. New orders and production dipped slightly below the breakeven level. Comments from purchasing managers were mixed, ranging from “flat” to “strong.”

The ISM’s survey chief suggested that the August drop was likely an anomaly, as there didn’t appear to be any specific factors for the drop. Consumer confidence improved in August. Unit auto sales fell back (following a strong July).

Personal income and spending figures for July were in line with expectations, but income figures for April, May and June were revised substantially higher, suggesting very good consumer fundamentals.

Next week, the economic calendar thins out considerably. The financial markets could react to any surprises in the ISM Non-Manufacturing Index (Tuesday). In making its September policy decision, Fed officials will look beyond the hard data reports and consider anecdotal information, such as contained in the Beige Book. Previous assessments have suggested that growth is modest to moderate.



Last Last Week YTD return %
DJIA 18419.30 18448.41 5.71%
NASDAQ 5227.21 5212.20 4.39%
S&P 500 2170.86 2172.47 6.21%
MSCI EAFE 1694.50 1702.17 -1.27%
Russell 2000 1239.80 1240.01 9.15%


Consumer Money Rates

Last 1 year ago
Prime Rate 3.50 3.25
Fed Funds 0.39 0.11
30-year mortgage 3.42 3.89



Last 1 year ago
Dollars per British Pound 1.327 1.530
Dollars per Euro 1.120 1.123
Japanese Yen per Dollar 103.23 120.33
Canadian Dollars per Dollar 1.310 1.327
Mexican Peso per Dollar 18.748 16.826



Last 1 year ago
Crude Oil 43.16 46.25
Gold 1317.10 1133.60


Bond Rates

Last 1 month ago
2-year treasury 0.75 0.69
10-year treasury 1.55 1.53
10-year municipal (TEY) 2.23 2.21


Treasury Yield Curve – 09/02/2016

As of close of business 09/01/2016


S&P Sector Performance (YTD) – 09/02/2016


As of close of business 09/01/2016


Economic Calendar

September 5 Labor Day Holiday (markets closed)
September 6 ISM Manufacturing Index (August)
September 7 Fed Beige Book
September 8 Jobless Claims (week ending September 3)

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 September 1st, 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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