Rover's Weekly Market Brief — 10/13/2017

Printer Friendly Printer Friendly October 13, 2017

Indices

DJIA: 22,873.00 (+0.44%)

NASDAQ: 6,605.80 (+0.24%)

S&P 500: 2,553.17 (+0.15%)

Commodities

Gold: 1,305.20 (+2.38%)

Copper: 313.05 (+3.35%)

Crude Oil: 51.37 (+4.22%)

Economy

The Producer Price Index (PPI) – Final Demand measure of wholesale inflation was up +0.4% in September, with yearly inflation up +0.2% to +2.6%. Refinery damage due to the hurricanes helped boost gasoline prices by +10.9%, forming the main component of the overall increase, but the hurricanes had negligible effects on food prices, which were flat after a -1.3% fall in August. Excluding the volatile food, fuel, and trade services components, core PPI inflation was up +0.2% for the month and +2.1% for the year.

The Consumer Price Index (CPI) measure of consumer inflation followed a +0.4% August increase with a +0.5% gain in September, raising the yearly rate by +0.3% to +2.2%. As with the PPI, an increase in the cost of gas (+13.1%) was the main contributor to the overall increase. Removing the food and energy components cut the increase to +0.1% and kept yearly core inflation unchanged at +1.7%. Cell phone service costs (+0.4%) increased for the first time in 14 months, with other increases including car insurance (+0.5%), recreation (+0.2%), education (+0.3%), and shelter (+0.3%). The increases offset declines in new vehicles (-0.4%), used vehicles (-0.2%), household furnishings (-0.3%), and medical care (-0.1%).

Retail and food sales were up +1.6% for September, with hurricane recovery likely influencing increases in sales at auto dealers (+3.6%), service stations (+5.8%), and gardening and building material stores (+2.1%). September sales also increased for grocery stores (+1.0% M/M, +3.0% Y/Y), restaurants (+0.8% M/M, +2.7% Y/Y), and online retailers (+0.5% M/M, +9.2% Y/Y), but decreased for electronics and appliances (-1.1% M/M, -4.4% Y/Y), department stores (-0.4% M/M, -0.5% Y/Y), health and personal care (-0.4% M/M, +0.4% Y/Y), and furniture (-0.4% M/M, +1.7% Y/Y). On a yearly basis, September sales were up +4.4% vs +3.5% for August, and excluding volatile auto sales brings September’s yearly sales up +4.6% vs August’s +4.1% increase.

Upcoming Economic Reports:

Tuesday October 17 – Industrial Production

Friday October 20 – Existing Home Sales

Earnings Calendar:

 

Monday Tuesday Wednesday Thursday Friday
Netflix
(NFLX)
Johnson &
Johnson
(JNJ)
Abbott
Laboratories
(ABT)
Taiwan
Semiconductor
(TSM)
Proctor &
Gamble
(PG)
Charles
Schwab
(SCHW)
UnitedHealth
Group
(UNH)
US Bancorp
(USB)
Verizon
Communications
(VZ)
General
Electric
(GE)




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