Clarksville Weekly Market Snapshot from Frazier Allen for the week of April 22nd, 2014
April 22, 2014
Clarksville, TN – Stock market participants seemed only mildly concerned about escalating tensions in Ukraine, but were encouraged by comments from Fed Chair Janet Yellen. Yellen suggest that the Fed would respond to significant, surprising changes in the outlook for growth, inflation expectations, or financial conditions.
Short-term interest rates aren’t going to be raised for a while, but the first increase in rates could be pushed out if the Fed remains short of its goals (full employment, 2% inflation).
Frazier Allen
Clarksville Weekly Market Snapshot from Frazier Allen for the week of April 13th, 2014
April 13, 2014
Clarksville, TN – The economic calendar was relatively thin. The Producer Price Index rose more than expected in March, reflecting a pickup in services (which had fallen in February). Details continue to suggest limited inflation pressure in the pipeline.
The Job Openings and Labor Turnover Survey data continued to suggest a large amount of slack in the job market (hiring rates and quit rates are trending flat, still low by historical standards). The IMF slightly lowered its forecast for global growth this year and next, with larger downward shifts in the outlook for Russia and Brazil.
Frazier Allen
Clarksville Weekly Market Snapshot from Frazier Allen for the week of April 6th, 2014
April 6, 2014
Clarksville, TN – The data remained consistent with a continued economic recovery. However, it’s unclear how much of the improvement is simply a rebound from bad weather and how much is underlying strength.
The monthly ISM surveys were mixed. Motor vehicle sales rebounded sharply in March (suggesting that bad weather postponed sales, just as we saw with the government shutdown in October). The March Employment Report was close to expectations.
Frazier Allen
Stocks end quarter mixed despite fewer headwinds
April 4, 2014
Clarksville, TN – March marked the fifth anniversary of the stock market’s bull run, since the bottom in the S&P 500 back in 2009. The most recent quarter was more lackluster, as U.S. stock indices were somewhat flat.
The equity markets showed some resilience during the last week of the month after Federal Reserve Chair Janet Yellen signaled that “considerable slack” in a “tough” labor market means the central bank will continue its monetary support of the economy for some time.
Frazier Allen
Clarksville Weekly Market Snapshot from Frazier Allen for the week of April 3rd, 2014
April 3, 2014
Clarksville, TN – The economic data reports were mixed and mostly ignored by the financial markets. Real GDP rose at a 2.6% annual rate in the 3rd estimate for 4Q13 (vs. +2.4% in the second estimate and +3.2% in the advance estimate).
Most of the story remained that same. Government subtracted a full percentage point from overall growth, but that was offset by a narrower trade deficit (which added a percentage point).
Frazier Allen
Clarksville Weekly Market Snapshot from Frazier Allen for the week of March 24th, 2014
March 24, 2014
Clarksville, TN – Financial market participants seemed to care little about Putin’s annexation of Crimea, but freaked out following a Yellen comment taken out of context. An upside surprise in the Philadelphia Fed Index help restore positive sentiment in equities.
As was widely expected, the Federal Open Market Committee tapered the monthly pace of asset purchases by another $10 billion (to $55 billion beginning in April).
Frazier Allen
Clarksville Weekly Market Snapshot from Frazier Allen for the week of March 16th, 2014
March 16, 2014
Clarksville, TN – Next week, the focus will be on the Fed’s policy decision and Janet Yellen’s first press briefing as Fed chair. The Federal Open Market Committee is expected to taper the monthly pace of asset purchases by another $10 billion (to $55 billion).
Policymakers are also expected to tweak the language of the forward guidance (the Fed’s conditional commitment to keep the overnight lending rate exceptionally low). Specifically, we can expect the FOMC to discard the 6.5% unemployment rate threshold.
Frazier Allen
Clarksville Weekly Market Snapshot from Frazier Allen for the week of March 9th, 2014
March 9, 2014
Clarksville, TN – There was plenty of fresh economic data, but most of it was distorted by the weather (which can have different effects depending on which areas of the country get hit).
Nonfarm payrolls rose by 175,000 in the initial estimate for February (median forecast: +150,000, although market participants were likely braced for about +130,000). Figures for December and January were revised a net 25,000 higher.
Frazier Allen
Clarksville Weekly Market Snapshot from Frazier Allen for the week of March 2nd, 2014
March 2, 2014
Clarksville, TN – There were relatively few surprises in the economic data reports. Real GDP rose at a 2.5% annual rate in the 2nd estimate for 4Q13 (vs. +3.2% in the advance estimate).
Consumer spending was not as strong as estimated earlier, but was still respectable (a +2.6% pace, vs. +3.3%). Business fixed investment was revised higher (+7.3%, vs. +3.8%).
Frazier Allen
Clarksville Weekly Market Snapshot from Frazier Allen for the week of February 23rd, 2014
February 23, 2014
Clarksville, TN – Poor weather continued to have an impact on the economic data. Residential construction and existing home sales fell more than anticipated in January. However, financial market participants seemed to be more willing to dismiss bad economic numbers (as being due to the weather) – U.S. markets also ignored turmoil in the Ukraine.
The CPI rose modestly in January, continuing a low trend. The new and improved Producer Price Report suggested relatively modest pipeline inflation pressures.
Frazier Allen
