Weekly Market Snapshot from Frazier Allen for the week of March 31st, 2013
Market Commentary by Scott J. Brown, Ph.D., Chief Economist
The economic data were mixed. Third quarter GDP growth rose at a 0.4% annual rate in 4Q12 (vs. +0.1% in the 2nd estimate and -0.1% in the advance estimate), but consumer spending growth was revised down (suggesting less momentum into 1Q13). Consumer confidence fell in March, with a sharp drop in expectations (which are thought to be a factor in big-ticket purchases). Durable goods orders jumped, reflecting a rebound in aircraft, but were mixed and generally soft otherwise. Home prices continued to rise. Weekly claims for unemployment benefits rose unexpectedly, which could signal a lagged impact from the payroll tax increase and higher gasoline prices, but it’s only one week.
The Dutch finance minister said that the Cyprus bank bailout could serve as a model for other countries, although he tried to walk those comments back shortly after. Most observers see the Cypriot bailout as a disaster and are now looking at the possibility of similar debacles in the smaller eurozone countries (Malta, Slovenia, perhaps even Luxembourg with its outsized banking industry). It’s going to be another long year for Europe. [Read more]
Legends Banks becomes Green Certified
Montgomery County, TN – The latest business to become Clarksville-Montgomery County Green Certified is Legends Bank.
Billy Atkins, Chairman and Chief Executive Officer of Legends Bank, began the celebration by thanking all the employees. He gave special mention to Britney Campbell, their VP of Marketing. “Britney is the one who drove this effort, she told us what to do and we listened,” he joked.
Legends Banks Green Ribbon Cutting Ceremony.
Weekly Market Snapshot from Frazier Allen for the week of March 24th, 2013
Market Commentary by Scott J. Brown, Ph.D., Chief Economist
The “Crisis in Cyprus” dampened the U.S. stock market mood early in the week. Why is Cyprus important? Its economy is a little bigger than Scranton. However, like Iceland and Ireland, it has an outsized banking system, several times larger than the overall economy. Even a moderate contraction in the banking system can have a huge impact.
The biggest fear is contagion. The decision to tie aid to a haircut on deposits led to fears of runs on the banks in other countries, but there’s been little evidence of that so far.
There were no surprises from Fed policymakers. The Federal Open Market Committee did not change its forward guidance (on the federal fund rate target, still not expected to start rising until 2015), nor did it alter its asset purchase plans (still $85 billion per month). [Read more]
Heritage Bank Holding Company, HopFedD Bancorp, Inc., declares Quarterly Cash Dividend
Hopkinsville, KY – HopFed Bancorp, Inc. (NASDAQ: HFBC) today announced that its Board of Directors has declared a quarterly cash dividend of $0.02 per share. The cash dividend will be paid on April 22nd, 2013, to stockholders of record as of April 4th, 2013.
HopFed Bancorp, Inc. is a holding company of Heritage Bank headquartered in Hopkinsville, Kentucky. [Read more]
DBS & Associates Engineering gets Clarksville-Montgomery County Green Certified
Montgomery County, TN – The latest business to become Clarksville-Montgomery County Green Certified is DBS & Associates Engineering.
When David B. Smith, company president, decided DBS & Associates Engineering would participate in CMC Green Certification, he asked three employees to form a “green team” and work with employees throughout the firm to solicit ideas and take the steps to become green certified.
DBS & Associates Engineering Green Certification Ribbon Cutting.
Clarksville Athletic Club goes Pink to raise funds in support of Breast Cancer Research
The Clarksville Athletic Club donates $1,500 to the American Cancer Society for Breast Cancer Research.
Clarksville, TN – The Clarksville Athletic Club, while promoting wellness and fitness with conventional fitness equipment and activity, extends its message of overall wellness to giving back to the community by supporting women’s health during the month of October raising awareness of Breast Cancer.
The Clarksville Athletic Club involved its patrons in the Breast Cancer effort with the signature ribbon color (pink) while promoting fitness and commitment to giving back to the community.
Nathan Deer, Clarksville Athletic Club with Jerri Rule, American Cancer Society (Photo by Cheryl Bernardo)
Weekly Market Snapshot from Frazier Allen for the week of March 17th, 2013
Market Commentary by Scott J. Brown, Ph.D., Chief Economist
The economic data were mixed, but the stock market continued to focus on the good news and ignored the rest. Retail sales rose more than expected in February, but results varied across sectors. Industrial production picked up, following a weak January (results varied by industry).
The inflation reports showed some pressure from higher gasoline, as anticipated, and moderate core inflation. Treasury reported a smaller deficit than a year ago. Initial claims for unemployment benefits continued to trend lower. Consumer sentiment fell in the mid-March assessment, with a sharp decline in expectations (down to a 15-month low).
The Dow Jones Industrials Average continued to new record highs, up 10 sessions in a row. In contrast to the optimism expressed in equities, bond yields have remained relatively low.
Next week, housing figures have some market-moving potential, but February is not a “make or break” month for the sector (weather can have an impact). The March figures will be more important. No surprises are expected from the Fed policy meeting on Wednesday.
Officials have had a public debate about the potential costs and benefits of current policy and the settled view is that the benefits (to the labor market, in particular) outweigh the potential that we may see excessive risk-taking and financial instability. The Fed will release revised projections of growth, unemployment, and inflation. Note that the Fed policy announcements will now be made at 2:00pm. On the last meeting of the quarter, the Fed will also release revised projects at 2:00 p.m. and Bernanke’s press briefings will follow at 2:30pm.
Indices
| Last | Last Week | YTD return % | |
| DJIA | 14539.14 | 14329.49 | 10.95% |
| NASDAQ | 3258.93 | 3232.09 | 7.93% |
| S&P 500 | 1563.23 | 1544.26 | 9.61% |
| MSCI EAFE | 1699.43 | 1682.67 | 5.95% |
| Russell 2000 | 953.07 | 934.57 | 12.21% |
Consumer Money Rates
| Last | 1-year ago | |
| Prime Rate | 3.25 | 3.25 |
| Fed Funds | 0.17 | 0.15 |
| 30-year mortgage | 3.51 | 3.92 |
Currencies
| Last | 1-year ago | |
| Dollars per British Pound | 1.509 | 1.567 |
| Dollars per Euro | 1.301 | 1.302 |
| Japanese Yen per Dollar | 95.880 | 83.630 |
| Canadian Dollars per Dollar | 1.023/td> | 0.993 |
| Mexican Peso per Dollar | 12.465 | 12.700 |
Commodities
| Last | 1-year ago | |
| Crude Oil | 93.03 | 105.43 |
| Gold | 1592.90 | 1636.25 |
Bond Rates
| Last | 1-month ago | |
| 2-year treasury | 0.26 | 0.27 |
| 10-year treasury | 2.00 | 2.03 |
| 10-year municipal (TEY) | 3.31 | 3.07 |
Treasury Yield Curve – 03/15/2013
S&P Sector Performance (YTD) – 03/15/2013
Economic Calendar
| March 18th |
— |
Homebuilder Sentiment (March) |
| March 19th |
— |
Building Permits, Housing Starts (February) |
| March 20th |
— |
FOMC Policy Decision, Bernanke Press Briefing |
| March 21st |
— |
Jobless Claims (week ending March 16th) Philadelphia Fed Index (March) Existing Home Sales (February) Leading Economic Indicators (February) |
| March 26th |
— |
Durable Goods Orders (February) New Home Sales (February) Consumer Confidence (March) |
| March 29th |
— |
Good Friday Holiday (markets closed) Personal Income and Spending (February) |
| April 5th |
— |
Employment Report (March) |
| April 10th |
— |
FOMC Minutes (March 20th) |
Important Disclosures
US government bonds and treasury bills are guaranteed by the US government and, if held to maturity, offer a fixed rate of return and guaranteed principal value. US government bonds are issued and guaranteed as to the timely payment of principal and interest by the federal government. Treasury bills are certificates reflecting short-term (less than one year) obligations of the US government.
Commodities trading is generally considered speculative because of the significant potential for investment loss. Markets for commodities are likely to be volatile and there may be sharp price fluctuations even during periods when prices overall are rising. Specific sector investing can be subject to different and greater risks than more diversified investments.
Tax Equiv Muni yields (TEY) assume a 35% tax rate on triple-A rated, tax-exempt insured revenue bonds.
Material prepared by Raymond James for use by its financial advisors.
The information contained herein has been obtained from sources considered reliable, but we do not guarantee that the foregoing material is accurate or complete. Data source: Bloomberg, as of close of business February 28th, 2013.
©2013 Raymond James Financial Services, Inc. member FINRA / SIPC.
Planters Bank adds Randy Fletcher and Brandi Alexander
Hopkinsville, KY – Planters Bank is pleased to announce the addition of Randy Fletcher as VP of Commercial Lending and Brandi Alexander as Community Reinvestment Act officer.
Fletcher has 32 years of experience in the banking industry, including five years with the First National Bank in McMinnville, Tennessee, working as a commercial lender, chief credit officer, and president/chief operating officer.
Previously, he had worked in collections, credit administration, branch management and commercial lending.
Randy Fletcher and Brandi Alexander
Heritage Bank Announces Montgomery County Scholarship Honoree
Clarksville, TN – Heritage Bank is pleased to announce Vickie T. Wallace as the 2013 Heritage Bank Scholarship Fund Montgomery County Honoree.
Nineteen seniors from the Montgomery County area will receive the Heritage Bank High School Scholarship in honor of Mrs. Wallace and the commitment she has made to the Montgomery County community.
Over the last ten years, Heritage Bank has committed over $194,000 dollars in scholarship funds to 388 senior high school students planning to attend a higher education institution. [Read more]
F&M Bank Mortgage receives Premier Lender Award
img class=”alignleft size-full wp-image-22269″ title=”F&M Bank” alt=”F&M Bank” src=”http://www.clarksvilleonline.com/wp-content/uploads/2009/07/FMbank.jpg” width=”133″ height=”114″ />Clarksville, TN – Representatives of the United States Department of Agriculture’s Guaranteed Rural Housing (GRH) Program presented its prestigious Premier Lender for 2012 award to representatives of F&M Bank.
Making the presentation are Deneen Clayton and Shinika Jenkins, GRH loan specialists, and Don Harris, GRH Housing program director. Accepting the award for F&M are: DeWayne Olive, executive vice president and chief financial officer; Denise Alexander, vice president and mortgage operation manager; Yvonne Witzler, assistant vice president and manager for the bank’s Clarksville mortgage office; and Rodney Wilds, manager for the bank’s Brentwood mortgage office.
(from left) Deneen Clayton and Shinika Jenkins, and Don Harris, GRH Housing program director, DeWayne Olive, executive vice president and chief financial officer; Denise Alexander, Yvonne Witzler, and Rodney Wilds.
