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Clarksville Weekly Market Snapshot from Frazier Allen for the week of February 13th, 2017

F&M Investment Services - Raymond James - Clarksville, TNClarksville, TN – The economic data calendar was thin. December trade figures were roughly in line with expectations. The University of Michigan Consumer Sentiment Index fell in the mid-February estimate.

Stock market investors were encouraged by the prospect for tax cuts following comments by U.S. President Donald Trump. In contrast, the bond market, recognizing that the process for cutting taxes will be contentious and lengthy, is less fearful of a large boost to the federal budget deficit (hence, bond yields have backed down over the past month).

Frazier Allen
Frazier Allen

Next week, there are several economic reports, but January figures are subject to a number of seasonal distortions.

More importantly, Fed Chair Janet Yellen will deliver her semiannual monetary policy testimony on Tuesday and Wednesday. We may not learn much new regarding the outlook for rate increases (still expected to be gradual).

Monetary policy will remain data-dependent. Lawmakers will likely try to pull Yellen into a discussion of fiscal policy (infrastructure spending and tax cuts), but she will steer clear of that. Many may see Yellen as something of a lame duck. Her term as Fed chair ends February 3rd, 2018.

However, she will almost certainly have a lot to say about financial regulation.



  Last Last Week YTD return %
DJIA 20172.40 19884.91 2.07%
NASDAQ 5715.18 5636.20 6.17%
S&P 500 2307.87 2280.85 3.08%
MSCI EAFE 1734.20 1736.42 2.98%
Russell 2000 1378.53 1360.54 1.58%


Consumer Money Rates

  Last 1 year ago
Prime Rate 3.75 3.50
Fed Funds 0.66 0.37
30-year mortgage 4.13 3.65



  Last 1 year ago
Dollars per British Pound 1.250 1.452
Dollars per Euro 1.066 1.129
Japanese Yen per Dollar 113.25 113.35
Canadian Dollars per Dollar 1.315 1.393
Mexican Peso per Dollar 20.350 18.938



  Last 1 year ago
Crude Oil 53.00 27.45
Gold 1236.80 1194.60


Bond Rates

  Last 1 month ago
2-year treasury 1.19 1.18
10-year treasury 2.43 2.36
10-year municipal (TEY) 3.51 3.35


Treasury Yield Curve – 02/10/2017

As of close of business 02/09/2017

Treasury Yield Curve – 02/10/2017


S&P Sector Performance (YTD) – 02/10/2017

As of close of business 02/09/2017

S&P Sector Performance (YTD) – 02/10/2017


Economic Calendar

February 14  —  Small Business Optimism Index (January)
Producer Price Index (January)
Yellen Monetary Policy Testimony (Senate)
February 15  —  Consumer Price Index (January)
Retail Sales (January)
Industrial Production (January)
Yellen Monetary Policy Testimony (House)
February 16  —  Jobless Claims (week ending February 11)
Building Permits, Housing Starts (January)
February 17  —  Leading Economic Indicators (January)
February 20  —  Presidents Day (markets closed)
March 10  —  Employment Report (February)
March 15  —  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 February 9th, 2017.

©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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