Rover's Weekly Market Brief — 9/15/2017

Printer Friendly Printer Friendly September 15, 2017

Indices

DJIA: 22,268.00 (+2.16%)

NASDAQ: 6,448.47 (+1.39%)

S&P 500: 2,500.23 (+1.58%)

Commodities

Gold: 1,324.70 (-1.68%)

Copper: 295.40 (-2.88%)

Crude Oil: 49.89 (+5.08%)

Economy

August’s Produce Price Index (PPI) measure of wholesale inflation rose +0.2%, with a +0.5% increase in final demand goods balancing out by a +0.1% increase in final demand services. Three quarters of the goods increase was due to a +9.5% spike in the price of gasoline, which contributed to an overall +3.3% increase in energy prices. Goods prices were held back by drops in prices for plastic resins and materials (-0.9%) and food prices (-1.0%). On an annual basis, wholesale inflation was up +2.4%, and excluding energy, foods and services, was up +1.9%.

The Consumer Price Index (CPI) in August rose by +0.4%, and was up +1.9% over the previous 12 months. The report included a disclaimer that Hurricane Harvey was late enough in the month that its influence was minimal, but, as with the PPI index, higher energy costs (+2.8%), driven by a spike in the price of gasoline (+6.3%), accounted for much of the CPI increase. There were additional CPI contributions from shelter (+0.5%), including a +0.4% increase in rent, and food away from home (+0.3%). Prices dropped for food at home (-0.2%), energy services (-0.1%), used cars (-0.2%), and medical care commodities (-0.1%). Excluding food and energy, CPI was up +0.2% M/M, and +1.7% Y/Y.

Retail sales dropped -0.2% in August for their largest decline in 6 months, and previous months were revised downwards with June dropping from +0.3% to -0.06% and July dropping from +0.6% to +0.3%. Sales fell for automobiles (-1.6%), clothing (-1.0%), electronics (-0.7%), and building materials (-0.5%). Non-store (i.e. online) retailer sales also dropped by -1.1%, but Amazon’s annual Prime Day helped push July’s non-store sales to +1.8% and may have shifted purchases to July from August. Sales at gas stations (+2.5%) were aided by rising prices, and were also up for furniture (+0.4%), food (+0.3%), and the “miscellaneous stores” (+1.4%) category, which includes florists, office supplies and used merchandise stores. On a yearly basis sales were up +3.2%, with yearly sales excluding automobiles up +3.6%.

Upcoming Economic Reports:

Wednesday September 20 – Federal Open Market Committee (FOMC) Announcement

Friday September 22 – Purchasing Managers Index (PMI) Composite Flash

Earnings Calendar:

 

Monday Tuesday Wednesday Thursday Friday
Mitsubishi
Chemical Hldgs
(MTLHY)
China Railway
(CWYCY)
General Mills
(GIS)
Manchester
United
(MANU)
CarMax
(KMX)
China Oilfield
Services
(CHOLY)
AutoZone
(AZO)
Telia
Company
(TLSNY)
Presidio
(PSDO)
Finish Line
(FINL)




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