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Clarksville Weekly Market Snapshot from Frazier Allen for the week of December 17th, 2017

F&M Investment Services - Raymond James - Clarksville, TNClarksville, TN – As expected, the Fed raised short-term interest rates for the third time in 2017 (market participants were more focused on the progress of tax legislation).

The dots in the dot plot did not shift much from where they were in September and were all over the place for the end of 2018 and 2019 – meaning that there is no clear consensus on the pace of policy action (and bear in mind that personnel changes mean that many of these dots will be replaced in 2018).

Frazier Allen
Frazier Allen

The economic data reports were consistent with moderate growth in the near term.

Retail sales results for November were stronger than expected, with upward revisions to September and October.

Industrial production posted a lackluster gain. Inflation reports showed some pressure in energy and moderate core inflation, with some pipeline pressure in commodities.

Next week, the financial markets are expected to show little interest in the economic data reports (the focus will remain on the tax bill). Housing figures (sales and construction activity) aren’t all that critical in November and seasonal adjustment can exaggerate minor weather effects.

The estimate of 3Q17 GDP growth is expected to be little change from the previous assessment (and the story isn’t going to change). Durable goods orders and personal spending data will help to fill in the picture on 4Q17 GDP growth.


  Last Last Week YTD return %
DJIA 24508.66 24272.35 24.02%
NASDAQ 6856.53 6873.97 27.37%
S&P 500 2652.01 2647.58 18.46%
MSCI EAFE 2016.52 2020.13 19.75%
Russell 2000 1506.95 1544.14 11.04%


Consumer Money Rates

  Last 1 year ago
Prime Rate 4.50 3.50
Fed Funds 1.16 0.66
30-year mortgage 3.97 4.38



  Last 1 year ago
Dollars per British Pound 1.343 1.242
Dollars per Euro 1.178 1.041
Japanese Yen per Dollar 112.39 118.18
Canadian Dollars per Dollar 1.280 1.334
Mexican Peso per Dollar 19.138 20.333



  Last 1 year ago
Crude Oil 57.04 50.90
Gold 1257.1 1129.80


Bond Rates

  Last 1 month ago
2-year treasury 1.82 1.72
10-year treasury 2.35 2.37
10-year municipal (TEY) 3.11 3.12


Treasury Yield Curve – 12/15/2017

As of close of business 12/14/2017

Treasury Yield Curve – 12/15/2017

S&P Sector Performance (YTD) – 12/15/2017

As of close of business 12/14/2017

S&P Sector Performance (YTD) – 12/15/2017

Economic Calendar

December 18  —  Homebuilder Sentiment (December)
December 19  —  Building Permits, Housing Starts (November)
December 20  —  Existing Home Sales (November)
December 21  —  Jobless Claims (week ending December 16)
   —  Real GDP (3Q17, 3rd estimate)
December 22  —  Durable Goods Orders (November)
   —  Personal Income and Spending (November)
   —  New Home Sales (November)
   —  UM Consumer Sentiment (December)
December 25  —  Christmas Holiday (markets closed)
January 1  —  New Year’s Holiday (markets closed)
January 5  —  Employment Report (December)

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 December 14th, 2017.

©2017 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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