Newsletter: In the Markets – Week-Ending May 19th, 2017
Newsletter: In the Markets – Week-Ending May 19th, 2017
Crystal Brook Advisors
We Make Financial Planning Crystal Clear™
United States: The LEI increased 0.3 percent in April, its eighth consecutive month recording a gain. Six of the components added to the topline figure, while two were subtracted from it. (1) Stock prices, which had positively added to the topline figure for the previous 5 months, subtracted 0.01 percentage points from the index. Building permits were April’s largest detractor, slicing 0.07 percentage points off the headline number. (1)
Europe: Europe’s third biggest economy has suffered years of anemic growth, high unemployment and budget deficits, while neighbors such as Germany and the U.K. have enjoyed a stronger recovery from the global financial crisis. (2) The French economy expanded by 1.2% in 2016, according to the International Monetary Fund. The two larger economies in Europe — Germany and the U.K. — posted growth of 1.8% over the same period. (2)
Asia: The French economy expanded by 1.2% in 2016, according to the International Monetary Fund. The two larger economies in Europe — Germany and the U.K. — posted growth of 1.8% over the same period. (3) The Philippine economy grew at its slowest pace in more than a year in the first quarter, but resilient exports and strong consumer spending are likely to keep momentum buoyant this year. (3)
Latin America: With the world economy increasingly hitched to (or shunted by) the Chinese economic locomotive, it’s notable China’s trade with South America grew about 25 times between the year 2000 and 2013, almost hitting $US100 billion. (4) In 2015, Chinese President Xi Jinping announced plans to invest $US250 billion in Latin America over the coming decade. Soon after Donald Trump won last year’s US Presidential election, Xi was back making his third visit to South America since taking office. (4) A decade-long boom in prices ended in 2015 and South America, like Australia, is trying to deal with China’s economic slowdown as it shifts from industry-based investment to consumption-based service industries. (4)
Monday 5/15
- The S&P 500 and Nasdaq composite closed at record highs on Monday after a rise in tech and oil prices. (5)
- The S&P climbed about 0.5 percent, with materials leading advancers. Energy was also among the best performers after a sharp rise in crude prices. (5)
Tuesday 5/16
- The Standard & Poor’s 500 index slid 1.65 points, or 0.1 percent, to 2,400.67. (6)
- The Dow Jones industrial average fell 2.19 points, or 0.01 percent, to 20,979.75. (6)
Wednesday 5/17
- The Dow Jones industrial average fell nearly 373 points, or 1.8 percent, to 20,606.93, as a broad array of other indexes all lost ground. Meanwhile, a widely followed measure of volatility known as the VIX, which had been subdued for months, spiked by a dramatic 21 percent in what was one of the most volatile days in the past decade. (7)
Thursday 5/18
- Wal-Mart Stores Inc (NYSE:WMT) recorded a big jump in online sales in the first quarter. The company recorded 63 percent jump on a year-over-year basis while gross merchandise value also climbed 69 percent. This could signal that the company is serious in weaning away customers from online retailer Amazon.com, Inc. (NASDAQ:AMZN), which has other businesses to compensate. (8)
Friday 5/19
- The Dow Jones Industrial Average DJIA, +0.82% gained 122 points, or 0.6%, to 20,784. Caterpillar Inc. CAT, +2.43% and DuPont & Co. DD, +1.21% were leading the gains, up nearly 2%. (9)
Contributor: Thomas Padula
Source:
(1) Wells Fargo Economic Group
(2) CNN Money
(3) Reuters
(4) Blue Notes
(5) CNBC
(6) ABC News
(7) The Washington Post
(8) Stock Market Daily
(9) Market Watch
