Archive for market

Monthly Market Brief-July 2017

Each month, our Heritage Investment team publishes a market brief to provide an overview of the major factors influencing the US economy, including a summary of key sectors and the current positives & challenges.

Click Market Brief July 2017 for updates.

Here are some key highlights:

POSITIVES:

  • Non-farm payrolls beat consensus expectations, adding 222,000 jobs in June
  • The ISM Manufacturing Index surged nearly 3 percentage points in June to 57.8, driven by strong new orders, production, and backlog
  • Consumer confidence came in at a strong 118.9, the highest posting in 16 years

CHALLENGES:

  • Consumer inflation remains weak which does not support the Federal Reserve’s plan to increase interest rates and reduce their bond buying
  • Consumer spending will likely remain relatively weak if income continues to slip
  • Housing remains soft as indicated by relatively weak pending home sales and building permits

Monthly Market Brief- June 2017

Each month, our Heritage Investment team publishes a market brief to provide an overview of the major factors influencing the US economy, including a summary of key sectors and the current positives & challenges.

Click Market Brief June 2017 for June 2017 updates.

Here are some key highlights:

POSITIVES:

  • European equities continue to outpace the U.S. market with solid fundamentals and increased investor confidence in response to Emmanuel Macron’s French presidential win
  • The ISM non-manufacturing Index came in at 56.9, driven by strong backlogs and strength in employment
  • 1stquarter GDP was revised up from 0.7% to 1.2%

CHALLENGES:

  • As the pool of candidates dwindled to a 9 year low, non-farm payrolls posted its weakest reading in nearly 5 years, adding just 138,000 jobs in May
  • Wage growth remains surprisingly weak even as the unemployment rate sits at a 16-year low of 4.3%
  • The effects of low wages has likely played a part in weakening vehicle sales & a decline in existing home sales; further weakness in consumer spending is expected
  • Political uncertainty remains a near-term risk given the multiple challenges facing the Trump administration

Monthly Market Brief- December

Each month, our Heritage Investment team publishes a market brief to provide an overview of the major factors influencing the US economy, including a summary of key sectors and the current positives & challenges.

Click Market Brief December 2016 for the December 2016 update.

Here are some key highlights:

POSITIVES

o Consumer confidence jumped 6.6% in November to a cycle high not seen since July 2007
o Manufacturing enjoyed a nice post-election bounce with the ISM manufacturing index up 1.3 points to 53.2 and the U.S. MarkitManufacturing PMI increasing to a more-than-expected 53.9
o Short-term stabilization of oil prices was recently achieved as OPEC reached an agreement to cut oil production for the first time since 2008
o Trending in-line with the 2016 non-farm payroll average of 180,000, a respectable 178,000 jobs were added in November

CHALLENGES

oWage growth remains a disappointing component within U.S. jobs, accelerating only 2.5% year-over-year
oThe recent improvement in the unemployment rate from 4.9% to 4.6% was largely driven by a contraction in the labor force participation rate