Chart reflects price changes, not total return. Because it does not include dividends or splits, it should not be used to benchmark performance of specific investments.
Last Week’s Economic Headlines
· According to the Federal Reserve’s Industrial Production and Capacity Utilization report, industrial production rose 0.9% in December, even though manufacturing output edged up a modest 0.1%. For the fourth quarter as a whole, total industrial production jumped at an annual rate of 8.2%, after being held down in the third quarter by hurricanes Harvey and Irma. The gain in manufacturing output in December was the fourth consecutive monthly increase. Overall, the increase in industrial production was largely driven by the output of utilities, which advanced 5.6% for the month. Mining moved up 1.6%. Capacity utilization for the industrial sector was 77.9%, a rate that is 2.0 percentage points below its long-run average.
· New residential construction slowed in December. According to the latest Census Bureau report, applications for building permits fell 0.1% below November’s rate, while new housing starts dropped 8.2% from November’s revised estimate. On the plus side, housing completions in December were up 2.2% over November’s figures and are 7.4% above the December 2016 rate. A lack of inventory may have propelled home completions in order to get more new homes on the market. This focus on housing completions may have pushed new applications and starts to the back burner.
· In the week ended January 13, initial claims for unemployment insurance was 220,000, a decrease of 41,000 from the previous week’s level. The advance insured unemployment rate rose 0.1 percentage point to 1.4%. The advance number of those receiving unemployment insurance benefits during the week ended January 6 was 1,952,000, an increase of 76,000 from the prior week’s level, which was revised up by 7,000.
Eye on the Week Ahead
The first report on the fourth-quarter gross domestic product is out this week. Economic growth exceeded 3.0% in the third quarter and is expected to remain about the same for the last quarter of 2017. Also, reports on the housing sector for December are available this week.
Data sources: News items are based on reports from multiple commonly available international news sources (i.e. wire services) and are independently verified when necessary with secondary sources such as government agencies, corporate press releases, or trade organizations. Market data: Based on data reported in WSJ Market Data Center (indexes); U.S. Treasury (Treasury yields); U.S. Energy Information Administration/Bloomberg.com Market Data (oil spot price, WTI Cushing, OK); www.goldprice.org (spot gold/silver); Oanda/FX Street (currency exchange rates). All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Past performance is no guarantee of future results. All investing involves risk, including the potential loss of principal, and there can be no guarantee that any investing strategy will be successful.
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