Rover's Weekly Market Brief — 10/27/2017

October 27, 2017 Printer Friendly Printer Friendly

Indices

DJIA: 23,434.00 (+0.45%)

NASDAQ: 6,701.26 (+1.09%)

S&P 500: 2,581.07 (+0.23%)

Commodities

Gold: 1,274.20 (-0.49%)

Copper: 310.25 (-1.99%)

Crude Oil: 53.98 (+4.88%)

Economy

As in previous months, a strong increase in commercial aircraft orders (+31.5%) was a major contributor to the +2.2% gain in September’s new orders for durable goods. Increases in shipments (+1.0%) and unfilled orders (+0.2%) were also led by the transportation component. New orders for core capital goods, which exclude the transportation and military components and serve as a measure of business investment, were up +1.3%, matching the rate for both July and August. In addition to the increase in commercial aircraft orders, September orders increased for manufacturing (+2.9%), communications equipment (+4.8%), and military aircraft (+2.4%), while orders decreased for computers (-5.5%), machinery (-0.2%), and primary metals (-0.1%).

In September a +$1.7 billion increase in imports outpaced a +$0.9 billion increase in exports to widen the trade deficit +1.3% to $64.1 billion. Wholesale inventories increased to $609.1 billion (+0.3%), and retail inventories decreased to $618.0 billion (-1.0%), largely due to a -2.6% drop in automotive inventories. Exports increased for “other goods” (+5.7%), and industrial supplies (+4.8%), which includes petroleum and petroleum products, and dropped for automotives (-6.0%), capital goods (-0.6%), and consumer goods (-0.4%). Imports increased notably for food (+1.6%), industrial supplies (+2.1%), and capital goods (+2.2%) and only dropped for automotives (-2.0%).

The advance estimate for Q3 GDP showed less hurricane related weakness than expected and beat analyst estimates at +3.0%, down from +3.1% in Q2. GDP was aided by increases in consumer spending (+2.4%), business investment (+3.9%), exports (+2.3%) and federal government spending (+1.1%), and decreases in imports (-0.8%). These contributions were partially offset by decreases in residential fixed investment (-6.0%), and state and local government spending (-0.9%). While consumer spending was up for the quarter, disposable personal income rose at a slower +2.1% rate in Q3 vs. +3.6% in Q2, and the personal saving rate dropped to +3.4% in Q3 vs +3.8% in Q2.

Upcoming Economic Reports:

Monday October 30 – Personal Income and Outlays

Friday November 3 – Employment Situation

Earnings Calendar:

 

Monday Tuesday Wednesday Thursday Friday
Mondelez
International
(MDLZ)
Pfizer
(PFE)
Facebook
(FB)
Apple
(AAPL)
Berkshire
Hathaway
(BRK.B)
Roper
Technologies
(ROP)
Mastercard
(MA)
Kraft Heinz
(KHC)
Alibaba Group
(BABA)
Mitsubishi
(MSBHY)






Top