The U.S. stock market finished marginally higher as investors digest a mix of economic data.  Interest rates were also little changed as the benchmark 10-year treasury yield increased from 2.08% to 2.09%.  Meanwhile the spread between the 10-year treasury yield and the 2-year treasury yield fell from 0.29% to 0.27%. The price of gold was virtually unchanged at $1,345 an ounce, while the U.S. Dollar Index (DXY) rose from 96.59 to 97.55 amid strong reports on retail sales.  The price of crude oil continues to fall as it drops 2.9% to $52.51 a barrel as growing oversupply of the commodity swamps its demand.  

Index               Started Week         Ended Week         Change         Change %         YTD %
DJIA 26,719.1326,599.96-119.17-0.45%14.03%
Nasdaq 8,031.71 8,006.24-25.47-0.32%20.66%
S&P 500 2,950.46 2,941.76-8.70-0.29%17.35%
Russell 2000 1,549.63 1566.5716.941.09%16.17%

This Week’s Economic Highlights

  • The Producer Price Index (PPI), a measure of wholesale inflation, increased by 0.1% in May.  Given the moderate monthly increase, over the past year PPI has slowed from 2.2% to 1.8%.  However, core PPI (which excludes the volatile food and energy prices) rose by a strong 0.4% in May, and increased its annual rate from 2.2% to 2.3%.
  • The Consumer Price Index (CPI), a measure of retail inflation, also increased by 0.1% in May.  Over the past year CPI has grown at a rate of 1.8%, down from 2.0% the month prior.  Core CPI (which excludes the volatile food and energy prices) also rose by 0.1% in May, while its annual growth rate fell from 2.0% to 1.8%.
  • Initial unemployment claims rose by a slight 3,000 to 222,000 for the week ending May 8th, while the more stable four-week average increased by 2,500 to 217,750.  Continuing unemployment claims, which lag initial claims by a week, rose by an even slighter 2,000 to 1.69 million.  Both initial and continuing unemployment claims remain near historic lows.
  • U.S. retail sales jumped by a strong 0.5% in May with broad gains in all areas of the retail sector.  That said, excluding automobile sales (which consists of a large portion of retail sales and has inconsistent month-to-month demand), retail sales still rose by 0.5%.
  • U.S. industrial production increased by a much needed 0.4% in May after falling by a cumulative 1.21% over the prior five months.  Capacity utilization also edged slightly higher, increasing from 77.9% to 78.1%.

Quote

“The test of a first-rate intelligence is the ability to hold two opposing ideas in mind at the same time and still retain the ability to function.  One should, for example, be able to see that things are hopeless yet be determined to make them otherwise.”

– F. Scott Fitzgerald

Like what you read? Subscribe to our mailing list and receive notifications when new content is posted.

* indicates required
Interested Posts

Follow us on social media!

Important Disclosures:  Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly from The Market Commentator℠, will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio.  Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions.  Moreover, you should not assume that any discussion or information contained in The Market Commentator℠ serves as the receipt of, or as a substitute for, personalized investment advice from The Milwaukee Company™.

In addition, The Market Commentator℠ may contain links to articles or other information that are contained on a third-party website.  The Milwaukee Company does not endorse or accept responsibility for the content, or the use, of the website.  The Milwaukee Company assumes no liability for any inaccuracies, errors or omissions in or from any data or other information provided on the pages.  Thank you.