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Market Week Summary: July 31, 2017 - Markets March Ahead

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Wealth Financial Partners www.wealthfinancialpartners.net 877-714-2362 walter@walterpardo.com Credits: WFP
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BASKING RIDGE, NJ-Last week, markets marched ahead within a busy reporting week. The Dow rose 1.16% to close Friday on another new high.[1] The S&P 500 notched a record high during the week, despite closing the week slightly down 0.02%.[2] Meanwhile, the NASDAQ slipped 0.20%, and the MSCI EAFE rose 0.21%.[3]

Generally strong corporate earnings reports helped markets continue to hit highs. The majority of companies that have posted Q2 earnings so far have beaten their estimates. Those earnings performances helped push financials, materials, and energy stocks up by over 1% early in the week.[4] Health care companies also posted substantial earnings as S&P 500 health care stocks have risen 16% this year. Health insurer stocks have also increased by 22%.[5]

Additionally, Q2 Gross Domestic Product (GDP), consumer confidence, exports, housing, and oil all reported noteworthy developments.

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A Rundown of Last Week's Developments

  • Solid GDP Performance: For the second quarter, GDP came in at a 2.6% annualized rate - one of the strongest quarters in the last 2 years.[6] GDP growth was based on robust consumer spending for durable and nondurable goods. In addition, business investment hit a solid 5.2% annualized increase for the quarter.[7]
  • Healthy Consumer Confidence: Consumer confidence remains quite high with the index rising in July almost 4 points to 121.1. The index beat the optimistic estimate of 118 and has jumped approximately 20 points since last November's election, staying near March's 17-year high of 124.9.[8] In addition, the consumer sentiment index moved up modestly the last two weeks of July to end at 93.4.[9]
  • Decent Export and Import Numbers: Food products and capital goods helped exports rise by 1.4% in June. Further, wholesale and retail inventories both jumped 0.6%. Imports, however, fell 0.4% on lower industrial supplies and consumer goods.[10]
  • Mixed Home Sales: A tight labor market and low mortgages continue to spur demand for housing. In June, new home sales recorded a strong 610,000 annualized rate.[11] Meanwhile, existing home sales dropped 1.8% in June to an annualized rate of 5.5 million, which was lower than anticipated. Existing home prices, however, were up 6.5% year-over-year, with a median price of $263,800.[12]
  • Better Oil Prices: Oil prices rose this week, hitting the highest weekly percentage gains this year. Prices strengthened with news of shrinking U.S. crude and gas inventories, along with foreign efforts to reduce output.[13]

What Lies Ahead

The Fed observed in its meeting last week that risks to the economic outlook seem stable.[14]In its analysis of the economy, the Fed pointed to moderate economic growth, a sturdy employment environment, and positive business investments.[15] As expected, the Fed did not increase interest rates but suggested that unwinding its $4.5 trillion balance sheet could begin as early as September.[16]

This week will again offer key economic data to help provide a better understanding of market performance in June and early indicators for July.[17] As always, we are here to answer any questions you may have about our economy and your financial life.

About Wealth Financial Partners, LLC

Walter Pardo is Managing Partner of Wealth Financial Partners is an independent retirement planning and wealth management firm based out of Basking Ridge, New Jersey with expertise in financial life planning including investments, long-term care insurance, life insurance, 401(k) rollovers, retirement planning, tax planning and wealth conservation. For more information about Wealth Financial Partners, LLC, (877) 714-2362

106 Allen Road, 1st Floor, Basking Ridge, NJ 07920  walter@walterpardo.com

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 licensed in: CA, FL, GA, KS, MN, NY, NJ, IL, PA, OH, SC, CT. 

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. 

 

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.

  1. http://performance.morningstar.com
    https://www.cnbc.com
  2. http://www.cnbc.com
    http://performance.morningstar.com
  3. http://performance.morningstar.com
    https://www.msci.com
  4. https://www.cnbc.com
  5. https://www.bloomberg.com
  6. http://wsj-us.econoday.com
  7. http://wsj-us.econoday.com
  8. http://wsj-us.econoday.com
  9. http://wsj-us.econoday.com
  10. http://wsj-us.econoday.com
  11. http://wsj-us.econoday.com
  12. http://wsj-us.econoday.com
  13. https://www.cnbc.com
  14. https://www.bloomberg.com
  15. http://wsj-us.econoday.com
  16. https://www.cnbc.com
  17. http://wsj-us.econoday.com

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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.

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