Financial and Economic Brief - Apr. 18, 2017

by © Liberty Publishing, Inc.

U.S. Producer Prices Fall

According to the Labor Department, U.S. producer prices fell in March 0.1% for the first time since August. The producer price index was weighed down by a drop in the cost of services and energy products. With oil prices rising on news that Saudi Arabia wants to extend production cuts for another six months, monthly producer prices are likely to continue their upward trend. Overall domestic price pressures are growing, with most consumer inflation measures now above the Federal Reserve's 2% target. The increases reflect, in part, “an ebb in the dollar's rally and strengthening domestic demand.”
more...

U.S. Dollar Drops

The U.S. dollar dropped 0.7%, after President Trump told the Wall Street Journal that the dollar is “getting too strong.” The dollar hit its highest level in 13 years in the months after President Trump won the election. The increase was viewed as a sign that investors believe America will grow faster than other parts of the world. But now the president is worried that U.S. businesses, especially manufacturers, won't be able to compete. American goods are more expensive when compared to foreign products when the dollar is high. “It's very, very hard to compete when you have a strong dollar and other countries are devaluing their currency,” Trump said.
more...

Wells Fargo Flat Q1

Wells Fargo (WFC) reported flat first-quarter profits amid larger costs and lower mortgage banking income as the bank continued to move beyond its issues over unauthorized customer accounts. The news sent the bank’s shares lower nearly 2.3% to $51.90. In September the bank was hit with $185 million in penalties for opening as many as 2.1 million accounts that may not have been authorized. Although expenses rose during Q1, Wells Fargo plans $2 billion in annual cost cuts going forward, including centralizing marketing, risk, communications and other operations, along with analyzing branch operations. Savings will be reinvested in growing the bank.
more...

Request Information

Please let us know how we can serve you.




Office Location

Marlo W. DeMoss, CPA, CFP®

89015 Overseas Highway
Suite 3
Tavernier, FL 33070
ph: 305.664.0034
fax: 305.664.0134

News

Financial and Economic Brief - May 23, 2017

• U.S. Stocks Rise - The Dow Jones industrial average rose about 100 points, the S&P 500 rose 0.4%, and the Nasdaq composite grew half a percent.

• Changing Leadership at Ford Motors - Ford Motors fired CEO Mark Fields because of the company’s falling stock price, down 37% since July 2014, and uncertainty about the future.

• Import Taxes on Sugar - China recently announced that it will impose “hefty penalties” on sugar imports.

Financial and Economic Brief - May 16, 2017

• NY Manufacturing Drops in May - According to the Federal Reserve Bank of New York, manufacturing in New York State dropped for the first time in seven months to minus 1 in May, from 5.2 in April (a reading below zero is an indication of contraction).

• Energy Ministers Agree to Extend Cuts - The energy ministers of Saudi Arabia (OPEC) and Russia (non-OPEC) recently met and agreed to do “whatever it takes to achieve the desired goal of stabilizing the market.”

• U.S. China Beef Deal - President Trump and his trade team took steps to clear two trade disputes with China that have negatively affected the U.S. livestock business for years.

Financial and Economic Brief - May 9, 2017

• Interest Rate Hikes “On Track” - Cleveland Federal Reserve President, Loretta Mester, said that the U.S. Federal Reserve has met its employment goal (unemployment was 4.4% in April) and has almost reached its inflation goal (2%), despite some recent “weak” economic data, so it should continue raising interest rates.

• Sinclair Acquires Tribune Media Co. - The largest U.S. broadcaster, Sinclair Broadcast Group, is set to acquire Tribune Media Co., in an almost $4 billion deal.

• S&P 500 and Nasdaq Down - Monday the S&P 500 and the Nasdaq Composite fell after reaching record highs.

Financial and Economic Brief - May 2, 2017

• Sustained 3% Growth Not Likely - According to former Federal Reserve Chairman Ben Bernanke, the U.S. economy is doing well but may not meet the ambitious growth expectations of President Donald Trump.

• Factory Growth Slows, Inflation Measure Drops - Ahead of the Fed’s policy meeting this week, several “weak” reports came in: U.S. factory activity slowed in April to a reading of 54.8, consumer spending was flat in March and a key inflation measure dropped, but even with the slower growth economists still expect an interest rate increase in June.

• U.K. Growth Falls to 0.3% - According to the Office of National Statistics, there was slower growth in the U.K. in Q1 because of weaker retail sales and lower spending on key consumer items.

Financial and Economic Brief - Apr. 25, 2017

• U.S. Gas Prices Rise - According to the Lundberg Survey, the average price of a gallon of gas rose 3 cents in the past two weeks, to $2.46.

• Weak Q1 Growth Expected - New home sales were unusually strong in January and February, but such gains typically mean an “offsetting retreat” lies ahead.

• Wall Street Rises after French First Round - After the first round of the French election results came in, the Nasdaq hit a record high on Monday, with other indexes also rising.

Financial and Economic Brief - Apr. 18, 2017

• U.S. Producer Prices Fall - According to the Labor Department, U.S. producer prices fell in March 0.1% for the first time since August.

• U.S. Dollar Drops - The U.S. dollar dropped 0.7%, after President Trump told the Wall Street Journal that the dollar is “getting too strong.”

• Wells Fargo Flat Q1 - Wells Fargo reported flat first-quarter profits amid larger costs and lower mortgage banking income as the bank continued to move beyond its issues over unauthorized customer accounts.