Business & Finance

Guest Column

Weekly Market Update: Slow, But Positive, Trading Week

77a1189efaa6f58124ed_dec16_chart1227.jpg
Credits: WFP
77a1189efaa6f58124ed_dec16_chart1227.jpg

"To accomplish great things, we must not only act, but also dream; not only plan, but also believe."  - Anatole France

BASKING RIDGE, NJ- In the last full trading week of 2016, domestic markets were relatively quiet, with many people out of the office for the holidays. Nonetheless, all three major domestic indexes ended the week in positive territory. The S&P 500 was up 0.25%, the Dow gained 0.46%, and the NASDAQ added 0.47%.[1] International equities in the MSCI EAFE were also up, increasing by 0.36%.[2] The Dow continued to flirt with surpassing the 20,000 mark for the first time - reaching within fewer than 13 points at its highest trading point on Wednesday, December 20 - before closing at 19,933.81 for the week.

Outside of the markets, we received a number of reports that painted a mostly positive view of the U.S. economy. 

Sign Up for E-News

Good News

  • GDP revised up again: For its final report on economic growth in the third quarter, the Commerce Department adjusted the GDP up for the second time - to a 3.5% annual rate. This analysis shows the fastest economic growth in two years.[4]
  • Consumer sentiment hits nearly 13-year high: The monthly index measuring consumers' views on the current and future state of the economy increased by 4.7 points to reach 98.2 for December. This reading is the highest since January 2004.[5]
  • New home sales beat expectations: Economists predicted that new home sales for November would increase by 2.1%, but last week's data showed the increase was in fact 5.2%. Consumers anticipating higher interest rates in the future could be contributing to the expectation-beating results.[6]

Mixed News

  • Personal incomes stayed flat: Despite economists' predictions that personal incomes would increase by 0.3% in November, the Bureau of Economic Analysis' data showed them flatten.[7] Even with last month's stagnation, personal incomes are up 3.5% for the year.[8] 
  • Durable goods orders declined: After increasing by 4.8% in October, durable goods orders dropped by 4.6% in November - due largely to a 73.5% decrease in civilian aircraft orders.[9]  While no one likes to see a decrease, the report had several positive highlights, including an unexpectedly high increase in orders for U.S.-made capital goods.  

Overall, even though last week was fairly slow for trading, we continue to see signs that the economy is improving - even if it is still far from perfect. We look forward to discovering what 2017 holds for investors and hope for more record highs and an economy that picks up speed as time goes on.

 

 

Securities and advisory services are offered through Independent Financial Group, LLC(IFG), a registered broker-dealer and investment advisor. Member FINRA/SIPC. Wealth Financial Partners and IFG are unaffiliated entities. OSJ Branch: 12671 High Bluff Dr. Ste 200 San Diego, CA 92130 

1-877-714-2362 Call us if we can help. walter@walterpardo.com www.wealthfinancialpartners.com
Information provided is from sources believed to be reliable however we cannot guarantee or represent that it is accurate or complete. Because situations vary, any information provided on this site is not intended to indicate suitability for any particular investor. Hyperlinks are provided as a courtesy. When you link to a 3rd party website you are leaving our site and assume total responsibility for your use at these sites. Must disclose states that you are licensed in: CA, FL, GA, KS, MN, OH, NY, NJ, IL, PA, SC, CT.

[1] http://finance.yahoo.com/quote/%5EGSPC/history?period1=1481864400&period2=1482469200&interval=1d&filter=history&frequency=1d

http://finance.yahoo.com/quote/%5EDJI/history?period1=1481864400&period2=1482469200&interval=1d&filter=history&frequency=1d

http://finance.yahoo.com/quote/%5EIXIC/history?period1=1481864400&period2=1482469200&interval=1d&filter=history&frequency=1d

[2] https://www.msci.com/end-of-day-data-search

[3] http://finance.yahoo.com/quote/%5EDJI/history?period1=1481864400&period2=1482469200&interval=1d&filter=history&frequency=1d

[4] http://www.ftportfolios.com/Commentary/EconomicResearch/2016/12/22/real-gdp-growth-in-q3-was-revised-to-a-3.5percent-annual-rate

[5] http://www.nasdaq.com/article/us-consumer-sentiment-rises-to-highest-level-in-12-years-20161223-00277

[6] http://www.cnbc.com/2016/12/23/new-home-sales-reported-for-november-2016.html

[7] http://www.marketwatch.com/story/consumers-slam-on-the-brakes-as-personal-incomes-lose-steam-in-november-2016-12-22

[8] http://www.ftportfolios.com/Commentary/EconomicResearch/2016/12/22/personal-income-was-unchanged-in-november

 

The opinions expressed herein are the writer's alone, and do not reflect the opinions of TAPinto.net or anyone who works for TAPinto.net. TAPinto.net is not responsible for the accuracy of any of the information supplied by the writer. Click here to submit a Guest Column.

TAP Into Another Town's News:

You May Also Be Interested In

Sign Up for E-News

Berkeley Heights

Union County College’s Drama Club to Present “12 Angry Jurors”

April 25, 2018

CRANFORD – Union County College’s Drama Club will be performing for their spring show the play, “12 Angry Jurors,” as adapted by Sherman L. Sergel and based on the Emmy award-winning television movie by Reginald Rose. The play is based on the same plot as “12 Twelve Angry Men,” but by being named “12 Angry Jurors” both men and women appear in the ...

Paint by the Pond Event to be Held at Warinanco Park

ROSELLE/ELIZABETH, NJ - Children ages 4 to 12 years old are invited by the Union County Board of Chosen Freeholders to participate in the third annual Paint by the Pond. A project that teaches families about the importance of recycling while encouraging children to paint on cardboard, creating art from materials usually thrown away.

There will also be miniature houses made with the cardboard ...

The Mayor Addresses a Question on Tax Credits for Businesses

April 25, 2018

Some citizens have suggested that Berkeley Heights and any other New Jersey municipality can and should grant “tax breaks” or “tax credits” in the hopes of enticing businesses downtown. However, the law is clear and it does NOT allow municipalities to give “tax credits” to businesses.

Article VIII of the New Jersey State Constitution, Section 1 states, ...

Politics IS Government in Union County

After Bruce Patrson of Garwood was stopped from speaking at the Union County freeholder meeting of March 22 regarding the politics behind refusing to give the party line to a sitting freeholder I thought this brazen suppression of free speech could not go unanswered. A the the April 19 meeting I answered with these comments.

After ten years of following government in Union County I conclude ...

New Providence Borough Council to Cultivate Relationships with County Officials

April 12, 2018

NEW PROVIDENCE, NJ – Councilman Robert Robinson touted the importance of personal relationships with Union County representatives at the Monday, April 9 council meeting.

Union County Freeholders Angel Estrada and Bette Jane Kowalski attended the Street Smart campaign kick-off event prior to the meeting providing the council members with the opportunity to chat face-to-face with the two ...

Student Led #Rally4 Action to Protest Gun Violence Held Friday in Springfield

April 21, 2018

SPRINGFIELD, NJ - Fueled partially by their disappointment that students were not allowed to leave school for the nationwide student protest last month, student leaders planned a rally Friday on the nineteenth anniversary of the Columbine massacre in Colorado. At 4:30 p.m., students, parents, families, community members met at Chisholm Community Center to register voters, make ...

Student Led #Rally4 Action to Protest Gun Violence Held Friday in Springfield

April 21, 2018

SPRINGFIELD, NJ - Fueled partially by their disappointment that students were not allowed to leave school for the nationwide student protest last month, student leaders planned a rally Friday on the nineteenth anniversary of the Columbine massacre in Colorado. At 4:30 p.m., students, parents, families, community members met at Chisholm Community Center to register voters, make ...