Business & Finance

Market Update: June 26, 2017 - Markets Slide Sideways

Credits: WFP

BASKING RIDGE,NJ- Last week, markets kept relatively quiet despite the continuing drop in oil prices. The S&P 500 rose by 0.21%, the Dow increased by 0.05%, and the NASDAQ - the week's best performer - jumped 1.84%.[1] Internationally, the MSCI EAFE fell by 0.20%.[2] Asian markets remained relatively mixed while European markets were down modestly.[3]

A global glut of oil has led to 5-straight weeks of price declines. OPEC's attempts to curb oil production have not yet played out as expected, as prices are down roughly 20% for the year. Though oil rose slightly on Friday due to a weaker U.S. dollar, oil markets closed the week at a 10-month low.[4] Still, oil stocks and energy companies in general comprise less than 6% of stocks in the S&P 500 on a capitalization basis, down from 11% only 3 years ago. As such, they are less significant to the overall markets today than in the past.[5]

What We Learned Last Week

Sign Up for E-News

Despite oil's problems, a few economic indicators for the week pointed to the potential for mildly stronger Q2 consumer spending.[6]

  • Existing Home Sales Rebound: Overall, existing home sales for May rebounded with a 1.1% increase from April to an annualized rate of 5.62 million sales. Single-family sales rose 1.0% for an annualized rate of 4.98 million, while condos sales rose by 1.6% for an annualized rate of 640,000.[7]
  • New Home Sales and Pricing Surge: New home sales for May rose 2.9% to a 610,000 annualized rate on strong pricing. Median house pricing jumped to $345,800, an 11.5% rise for the month. The 16.8% year-on-year increase is roughly double the actual sales gain of 8.9%.[8]
  • Low Jobless Rate Stays Steady: June jobless numbers have so far remained on track and consistent with the current historic lows. Last week's data revealed that the 241,000 claims matched general consensus.[9]
  • Flash Purchasing Managers' Index (PMI) Slows: The PMI flash composite index came in at 53.0 for the month versus 53.9 for the prior month. Though new orders and employment in the service sector appear optimistic, manufacturing's new orders and output have fallen. The single index is a synthesis of data such as new sales orders, inventories, and employment. A reading above 50 indicates rising output versus the previous month.[10]

What Is Next?

With Q2 ending this week, markets will look at the durable goods orders, additional home sales data, and consumer sentiment, while continuing to watch oil prices.[11] In addition, the second part of the Fed stress test for banks will report on Wednesday. The second half of the stress tests evaluates banks' abilities to pay dividends and buy back stock. All 34 major banks passed the first part of the test last week, indicating their strength in an economic downturn.[12]


By clicking on these links, you will leave our server, as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.


TAP Into Another Town's News:

You May Also Be Interested In

Sign Up for E-News

Basking Ridge

Bridgewater Resident Named Interim Secretary/Director for County Park Commission

March 18, 2018

BRIDGEWATER, NJ - Bridgewater resident Geoffrey D. Soriano has been appointed interim Somerset County Park Secretary/Director by the Somerset County Park Commissioners.

Soriano's appointment is effective April 2, and he will replace Raymond Brown, who announced his retirement, effective May 1. The announcement, according to a release, was made on the day of Brown's 25th ...

Walk Out? Franklin High School Stands Up Against Gun Violence 

March 15, 2018

SOMERSET, NJ - The Franklin Township School district turned a national tragedy into a teachable moment for the community. 

"The kids did an excellent job, well planned, a great lesson in democracy, I am really proud of them," Superintendent of Schools, Dr. John Ravally said. "It is a teachable moment, one of our main missions is to promote active citizens. Citizens that are ...

A New Day for 529 Plans: Federal Tax Reforms Lead to New Possibilities for These Education Savings Accounts

March 9, 2018

Do you have a 529 college savings plan? Have you thought about opening a 529 plan account? If the answer to either question is “yes,” you should know about two major changes that broaden the possibilities for 529 plans. They may give your family some new options. You may be able to pay K-12 tuition with 529 plan funds.

The legislation ...

Upcoming Events

Sun, March 18, 8:30 AM

Wallkill River National Wildlife Refuge HQ, Sussex

NJ Audubon: Winter Raptors and Wildfowl: Wallkill ...


Sun, March 18, 3:00 PM

Crescent Avenue Presbyterian Church, Plainfield

Crescent Concerts Presents Annual Festival of ...

Arts & Entertainment

OLP Presents 'Screenagers' a Documentary on Growning Up in the Digital Age

March 18, 2018

Our Lady of Peace Church and Academy in New Providence will be hosting a special screening of the movie "Screenagers" regarding a very important topic for families and youth – “Growing up in the Digital Age.” The movie delves into the important and current topic of children and teenagers and their use of social media and digital devices. The movie is appropriate for ...


AtlantiCast: Episode 13

On this episode of AtlantiCast, new clinical studies in the fields of cardiology and immunotherapy, national and statewide recognitions for Atlantic Health System medical centers and the inaugural AtlantiCast Collab Challenge!