Month: June 2014

June
30

Provided by: Jon McGraw

An Economic Shark Bite…

Last week, the U.S. Department of Commerce delivered news that was about as welcome as a report of a great white shark sighting off a popular beach during the Fourth of July holiday. The Commerce Department’s third revision of its estimate for economic growth in the United States during the first quarter of 2014 was…

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June
30

Provided by: Jon McGraw

Economic Notes: June 30, 2014

Economic data was mixed, but survey responses showed stronger positive sentiment and housing appears to show some improvement.  The final 1st Quarter GDP release was amended downward, but this was largely blamed on weather effects and appears to be reversing for the current quarter. Equity returns were generally negative on the week, as the negative…

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June
23

Provided by: Jon McGraw

Real Costs Not Real, So Says The Fed?

The Federal Open Market Committee (FOMC) press release wasn’t quite as catchy as España Cañí — the Spanish song played to rile crowds at events as varied as baseball games and bullfights — but it helped motivate investors as they pushed American stock markets higher last week. The markets’ optimistic surge was a bit difficult to understand….

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June
23

Provided by: Jon McGraw

Economic Notes – June 23, 2014

A very busy week boosted by stronger manufacturing reports from the Northeast region, better industrial production and tighter capacity utilization. Housing sales data were mixed: better sentiments from builders this month but weaker monthly housing starts and building permits in May. The headline CPI rose slightly faster than the consensus view in May; the 12-month…

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June
19

Provided by: Jon McGraw

Fed Note – June 18, 2014

The FOMC concluded their June meeting June 18th, again with little fanfare or surprise. The tapering process of winding down stimulative treasury/mortgage bond purchases will continue at a rate of an additional $10 billion/mo., which will bring overall purchases down to a level of $35 bil./mo. That part came as no surprise, since jobs data,…

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June
16

Provided by: Jon McGraw

Economic Notes – June 16, 2014

In a slow week for economic data, stats like retail sales were weaker, but PPI also came in flat, which appeared to temper core inflation concerns from prior weeks. Equity markets were largely off, due to increased concerns about violence and possible military action in Iraq and skepticism about European stimulus. (-) Retail sales for…

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June
16

Provided by: Jon McGraw

Middle East Deja Vu and World Cup Predictions

Investors remain oddly complacent even in the face of unexpected events that have the potential to disrupt global markets. Last week, news media reported civil war in Syria has boiled over into Iraq, and ISIS (Islamic State of Iraq and Syria), a Sunni extremist group, has seized control of hundreds of square miles. According to…

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June
09

Provided by: Jon McGraw

Economic Notes – June 9, 2014

Featured by an unusual correction in the manufacturing ISM, economic data for the week was decent. The more dramatic news came from Europe, where the ECB provided additional easing and elected a new ‘negative interest rate’ policy, the first of its kind for a major central bank. Equity markets generally rose across the board on…

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June
02

Provided by: Jon McGraw

Economic Termites & Financial Capability

If you’re a fan of home renovation TV shows then you’re probably familiar with the types of bad news home inspections can uncover. Last week, the Commerce Department inspected its previous estimate for real gross domestic product (GDP) growth during the first quarter of 2014 and found some bad news. As it turns out, the…

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June
02

Provided by: Jon McGraw

Economic Notes – June 2, 2014

Economic data looked a bit better, as winter weather problems continue to dissipate towards more normal ordering and manufacturing conditions. However, some data remains lackluster (GDP for the first quarter was revised down into negative territory). The ECB stands poised to ease to stem deflation fears and spur economic growth. Markets reached new all-time highs…

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