Market Snapshot | August 2018, 2018 | Darel Ansley | People's Bank
August 6, 2018 | Jeff Hallman
For the week of August 6, 2018 — Vol. 16, Issue 32

>> Market Update

QUOTATION OF THE WEEK... "Housework can't kill you, but why take a chance." --Phyllis Diller, American comedian

INFO THAT HITS US WHERE WE LIVE... After dipping two months in a row, Pending Home Sales went up 0.9% in June--in all four U.S. regions. This National Association of Realtors (NAR) index of signed contracts on existing homes points to higher sales for July.  The NAR's chief economist believes  the worst of the supply crunch has possibly passed . And Realtor.com's chief economist noted, "markets on both coasts and in the South reported inventory increases in July."  The latest Case-Shiller Home Price Index stayed at a 6.4% annual gain for the second month in a row. So th e rate at which home prices are rising seems to have stabilized for now.   This information was also cross referenced thru our Affiliate Partner KCM and they also have price increases slowing down to a growth rate of  5.3%.

BUSINESS TIP OF THE WEEK...  Experts say the one trait that will set you apart from the competition is to over-deliver on value. Exceed  the expectations of your customers, vendors, partners, employees and community, and you'll give yourself a distinct competitive edge.

>> Review of Last Week

EARNINGS AND DATA SPIKE STOCKS... Hot on the heels of solid corporate earnings and decent economic data, the Dow and the S&P 500 scored their fifth weekly gain in a row, while the Nasdaq followed two weeks of losses with the biggest boost of the three. July jobs was the key economic report, and although we got a less-than-expected 157,000 new Nonfarm Payrolls, upward revs to May and June yielded a net gain of 216,000.  Unemployment ticked down to 3.9%, pretty impressive, since the labor force is up by 1.5 million the past year
The Fed met and left rates alone, as predicted. Even better, t heir policy statement said recent economic activity is rising at a "strong" rate, upgraded from the "solid" rate they observed in June. ISM reads showed manufacturing and services sectors staying well into expansion territory. The week ended with the Dow UP 0.1%, to 25463; the S&P 500 UP 0.8%, to 2840, and the Nasdaq UP 1.0%, to 7812.

Treasuries finished the week higher, helping mortgage bonds post modest gains. The 30YR FNMA 4.0% bond ended up .11, to $101.67. T he national  average 30-year fixed mortgage rate drifted up for the second week in a row according to  Freddie Mac's  latest Primary Mortgage Market Survey . Remember, mortgage rates  c an be extremely volatile, so check with your mortgage professional for up-to-the-minute information.
DID YOU KNOW?... In June, residential construction starts scored a 4% monthly gain, while ADP and Moody's Analytics reported 7,000 new construction jobs. Looks like the construction sector is moving up.

>> This Week's Forecast
PRICES GROW SLOWLY... Inflation is big on the radar this week and it's expected to rise by the Consumer Price Index (CPI) and Core CPI (excluding volatile food and energy prices). But the rate of gain remains mild, even on the wholesale front, by the Producer Price Index (PPI) and Core PPI.

Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.
Economic Calendar for the Week of Aug 6 - Aug 10
Date Time (ET) Release For Consensus Prior Impact
W
Aug 8
10:30
Crude Inventories
08/04
NA +3.8M Moderate
Th
Aug 9
08:30
Initial Unemployment Claims
08/04
220K 218K Moderate
Th
Aug 9
08:30
Continuing Unemployment Claims
07/28
NA 1.724M Moderate
Th
Aug 9
08:30
Producer Price Index (PPI)
Jul
0.3% 0.3% Moderate
Th
Aug 9
08:30
Core PPI Jul
0.2% 0.3% Moderate
F
Aug 10
08:30
Consumer Price Index (CPI) Jul
0.2% 0.1% HIGH
F
Aug 10
08:30
Core CPI Jul 0.2% 0.2% HIGH
F
Aug 10
14:00
Treasury Budget Jul NA -$42.9B Moderate

>> Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months...Wall Street's betting the Fed will bump rates a quarter percent at the end of September, then leave them alone until we get another tick up at the end of the year. Note: In the lower chart, a 94% probability of change is only a 3% probability the rate  will stay the same.
Current Fed Funds Rate: 1.75%-2.00%
After FOMC meeting on: Consensus
Sep 26
2.00%-2.25%
Nov   8
2.00%-2.25%
Dec  19 2.25%-2.50%
 
Probability of change from current policy:
After FOMC meeting on: Consensus
Sep 26
         94%
Nov   8
           9%
Dec  19
         73%

 
This e-mail is an advertisement for Darel Ansley. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice, or a commitment to lend. Although the material is deemed to be accurate and reliable, there is no guarantee of its accuracy. The material contained in this message is the property of Peoples Bank and cannot be reproduced for any use without prior written consent. This message is intended for business professionals only and is not intended for distribution to consumers or other third parties. The material does not represent the opinion of Peoples Bank.
 
This e-mail was sent to jeff@agent509.com.
You may unsubscribe from future advertisement e-mails from Darel Ansley.
Click here to unsubscribe

Equal Housing Lender    Member FDIC
Share

check_circle

You message has been sent!

Send us a Message: