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In the Markets – Week-Ending September 16

by Peter J. Creedon

Newsletter: In the Markets – Week-Ending September 16
Crystal Brook Advisors
We Make Financial Planning Crystal Clear

United States: The net worth of U.S. households set a record of $89.1 trillion in the second quarter, driven by a buoyant stock market and a steady resurgence of home prices.(1) CPI inflation rose 0.2 percent in August despite flat prices for food and energy. A surge in medical costs pushed the core index up 0.3 percent, although gains were widespread among other core categories.(2)

Europe: European officials will unveil new technology rules today aimed at reining in many of the world’s largest tech firms. Under the proposals, which will take years to complete, European publishers may be given powers to charge internet companies whenever their content shows up in online results or other services. Chat apps will also be more heavily policed by extending rules which currently only cover telecoms providers.(3) Switzerland’s central bank has kept its expansive monetary policy intact, holding its deposit rate at -0.75%, stating the Brexit vote has clouded its view of the global economy. (4)

Asia: China’s concerns about Venezuela’s debt and the safety of expatriates there have prompted emergency meetings between Chinese envoy and state companies.(5) Asian stock markets were higher, helped by gains for Apple’s suppliers, while some uncertainty remained before central bank policy meetings in Japan and the U.S.(6)

Monday 09/12

• U.S. stocks steadied after closing at their lowest levels since July 7 on Friday amid investor concerns that central banks around the world were running out of willingness or ability to prop up markets.(7)
• Pandora and Amazon are joining the music streaming business to compete with Spotify and Apple Music.(8)

Tuesday 09/13

• U.S. household incomes jumped in 2015, delivering the first increase in eight years, with the largest gains in the bottom fifth of earners.(9)
• The NFIB Index of Small Business Optimism edged down 0.2 points in August to 94.4. Owners’ expectations for business conditions weakened, largely due to the uncertain political and economic environment.(10)

Wednesday 09/14

• Germany’s Bayer will buy U.S. seed maker Monsanto for $57 billion, creating one of the world’s largest agrichemical firms. The agreement ends a monthslong courtship by the German pharmaceuticals-and-chemicals giant.(11)
• Walmart is working on a self-driving shopping cart that customers would be able to hail like an Uber – possibly through a smartphone app.(12)

Thursday 09/15

• Apple has confirmed initial quantities of the new iPhone 7 Plus have sold out in all colors. Speculation over strong sales out of the gate and impressive initial reviews sent shares in the tech titan sharply higher on Wednesday to log their best daily performance since July.(13)
• Solidifying its position as market leader, Spotify (Private:MUSIC) has reached 40M paying subscribers, up a third from six months ago. Apple Music (NASDAQ:AAPL), Spotify’s main competitor, is expanding at a much slower clip, although its growth is also impressive. Over the last seven months, the service grew from 13M to 17M paid subscribers.(14)

Friday 09/16

• Stocks slipped while U.S. government bonds were little changed, capping a rocky week where investors reassessed global central-bank policy.(15)
• Shares in Deutsche Bank AG plunged more than 8% on Friday after the German lender said the U.S. Department of Justice had proposed it pay $14 billion to settle various probes into mortgage securities it sold during the financial crisis.(16)

 

 

Market Close
U.S. stocks closed lower Friday, but preserved gains for the week, as oil prices dropped and investors fretted ahead of central bank policy meetings next week. The Dow Jones Industrial Average DJIA, -0.49% closed down 88.68 points, or 0.5%, to 18,123.80, for a weekly gain of 0.2%. The S&P 500 index SPX, -0.38% under fire from the energy and financials sectors, declined 8.11 points, or 0.4%, to close at 2,139.15, for a weekly gain of 0.5%. The Nasdaq Composite index COMP, -0.10% slipped 5.12 points, or 0.1%, to finish at 5,244.57. The tech-heavy index logged a weekly gain of 2.3% as Apple Inc. AAPL, -0.56% shares rose more than 11% on the week.(17)

Contributor: Oscar Xia

Sources:
(1) Source: Wall Street Journal
(2) Source: Wells Fargo Economics Group
(3) Source: Seeking Alpha
(4) Source: Seeking Alpha
(5) Source: Wells Fargo Economics Group
(6) Source: Wells Fargo Economics Group
(7) Source: Wall Street Journal
(8) Source: Seeking Alpha
(9) Source: Wall Street Journal
(10) Source: Wells Fargo Economics Group
(11) Source: Wall Street Journal
(12) Source: Seeking Alpha
(13) Source: Seeking Alpha
(14) Source: Seeking alpha
(15) Source: Wall Street Journal
(16) Source: Wall Street Journal
(17) Source: MarketWatch