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Clarksville Weekly Market Snapshot from Frazier Allen for the week of October 2nd, 2016

F&M Investment Services - Raymond James - Clarksville, TNClarksville, TN – The economic data were mixed. Consumer confidence rose in September. Durable goods orders were mixed. The estimate of 3Q16 GDP growth was revised higher (to a 1.4% annual rate, held back by a sharp slowing in inventory growth).

Personal income rose modestly in August, as expected, but spending was softer than anticipated, suggesting a possible loss of momentum following a strong spring and early summer (economists’ estimate of GDP growth were revised down for both 3Q16 and 4Q16).

Frazier Allen
Frazier Allen

Financial markets reacted to the presidential debate. Attention also turned to German banks. Deutsche Bank, the country’s largest lender, faces capital concerns following a large fine from the U.S. Department of Justice (related to transgressions undertaking in the housing bubble).

Commerzbank, Germany’s second largest bank, underwent a major restructuring. Perceptions improved on Friday, following increased concerns earlier in the week.

Next week, the September ISM surveys and the employment report will play a big part in shaping near-term expectations of the economy and monetary policy. China is on holiday, but developments in the rest of the world are likely to remain at the forefront of investors’ minds. The IMF will update its World Economic Outlook on Tuesday. Perceptions about German banks may vary, generating some financial market volatility.



Last Last Week YTD return %
DJIA 18143.45 18392.46 4.12%
NASDAQ 5269.16 5339.52 5.23%
S&P 500 2151.13 2177.18 5.24%
MSCI EAFE 1706.64 1728.08 -0.56%
Russell 2000 1237.75 1263.44 8.97%


Consumer Money Rates

Last 1 year ago
Prime Rate 3.50 3.25
Fed Funds 0.28 0.05
30-year mortgage 3.39 3.85



Last 1 year ago
Dollars per British Pound 1.297 1.513
Dollars per Euro 1.122 1.118
Japanese Yen per Dollar 101.03 119.88
Canadian Dollars per Dollar 1.315 1.331
Mexican Peso per Dollar 19.521 16.918



Last 1 year ago
Crude Oil 47.83 45.09
Gold 1326.00 1131.50


Bond Rates

Last 1 month ago
2-year treasury 0.73 0.75
10-year treasury 1.54 1.55
10-year municipal (TEY) 2.32 2.23


Treasury Yield Curve – 09/30/2016

As of close of business 09/29/2016

Treasury Yield Curve – 09/30/2016


S&P Sector Performance (YTD) – 09/30/2016

As of close of business 09/29/2016

S&P Sector Performance (YTD) – 09/30/2016


Economic Calendar

October 3 ISM Manufacturing Index (September)
October 7 Employment Report (September)
October 9 Second Presidential Debate
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
December 14 FOMC Policy Decision (Yellen press conference)

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 29th, 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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