Weekly Economic Summary - 10/2/2017Submitted by Miller Financial Group, LLC on October 2nd, 2017
The world woke up this morning to the tragic news of the worst mass shooting in U.S. history. More than 50 people are reported dead and over 400 injured in Las Vegas after a gunman opened fire from his 32nd floor hotel room into a crowd at a country music concert on Sunday evening. Our thoughts and prayers go out to all of the victims and families who were affected by this horrific tragedy.
In financial news, U.S. stocks have started the week in the green with both the Dow and S&P500 touching intraday highs and currently trading up nearly .25% in the early going. On Friday, the S&P500 and the Nasdaq finished at all-time highs and the Dow finished only 7 points below its September 20 record close. To finish out the quarter, the three main benchmarks posted weekly, monthly and quarterly gains. Today kicks off the fourth and final quarter of 2017 which is historically the equity market’s strongest quarter.
The big story last week was the roll-out of the Trump Tax Plan. The summary of the plan includes a cut in the corporate tax rate to 20%, a doubling of the standard deduction and only three individual tax brackets. There was no detail on how the plan will get paid for other than the hopeful potential that growth in the economy will cover the bill. Investors will be keeping a close eye on this story as we finish out 2017.
Two economic reports have been released this morning – the ISM Manufacturing Index for September and the Construction Spending report for August. The ISM Manufacturing index was 60.8 in September which is the highest level for the economic reading since 2004. A reading of 50 or more represents expansion. Construction spending increased 0.5% in August and was 2.5% higher than a year ago.
Markets in Europe and Asia are trading mostly higher. Oil and gold are pulling back as the ICE U.S. Dollar Index gained.
The fourth quarter is a great time to come in for a financial review before the year end. Give us a call to schedule an appointment.
Have a great week!