Weekly Economic Summary - 8/7/2017Submitted by Miller Financial Group, LLC on August 7th, 2017
It was another record setting week on Wall Street last week. The Dow Jones Industrial Average stretched its daily win streak to nine consecutive days on Friday, closing out with a 1.2% weekly advance while closing above 22,000 for a new record high. The S&P500 eked out a weekly gain of 0.2% while the Nasdaq finished down slightly.
Corporate earnings continued to dominate market headlines last week. Nearly 75% of the companies in the S&P500 have now reported second quarter earnings with results coming in better than expected. Q2 earnings are up 10.1%, far outpacing the average estimates of 6.4% forecasted in June. The rising earnings story in the first half of 2017 has supported higher stock prices year-to-date.
Economic data was strong last week with the week’s results highlighted on Friday by a booming jobs report. The Labor department released results on Friday that showed that the private sector added 209,000 jobs in July, much higher than the 180,000 anticipated. It was the fifth time in 2017 that monthly job gains have exceeded 200,000, a data set that the Federal Reserve is monitoring closely as it decides whether or not to raise interest rates one more time this year. We also found out from Friday’s report that the unemployment rate fell to 4.3% in July, marking the lowest level since 2001!
International markets also grinded higher last week led by rising profits in the US and throughout Europe with earnings growth now topping 11% year-over-year in the Eurozone. In the fixed-income markets, prices traded near even with the US treasury yield finishing the week little changed at 2.27%.
It looks to be relatively quiet in the week ahead. Only 35 companies from the S&P500 are slated to report this week as Q2 earnings season begins its wind down.
We hope you found some relief during last week’s NW heat wave. If you’re looking for a place to stay cool this week, swing in to the office for an appointment to review your financial plan.