M Notes: Mon, 6-9

LAST WEEK:

Markets:  The S&P500 is back to 6,000.  The all-time closing high is 6,144 on Feb 19th.

S&P roller coaster last week:  Up, Up, Flat, Down, and Up a lot.  

Fed Balance Sheet:  $6.673 Trillion.  

ISM:  Their Manufacturing Index dropped a touch, moving from 48.7 down to 48.5 in May.  Their Services index dropped from 51.6 down to 49.9 in May.  Context:   Manufacturing produces 30% of GDP, while Services produces 70% of GDP.  A number below 50 implies a contraction of the economy, while a number above 50 implies an expansion of the economy.  

Jobless claims:  The weekly number came in at 247,000.  The four-week average came in at 235,000.

Jobs:  The May Jobs number came in at 139,000 jobs, slightly higher than the 130,000 consensus number.  

National Debt:  $36.956 Trillion.  (It’s going up about $28-30 Billion/week.)

Trade Deficit:  It came in at $61.6 Billion for April.  Exports were up +8.6%, while Imports were up +3.4% Y/Y.  

Unemployment:  The U3 rate remained unchanged, as expected, at 4.2% for May.  

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THIS WEEK:

Focus of the week:  Inflation.   Consumer Inflation (the CPI) is expected to rise from 2.3% up to 2.5%.  Wholesale Inflation (the PPI) is expected to move from 2.4% up to 2.6%.  

Calendar:   The CPI (Wed); the PPI, and jobless claims (Thu).

Earnings:  The current season is pretty much over.  Some of the companies reporting this week:   Adobe, Oracle, and Smucker. 

* The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.    The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks.  The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System.  Yahoo! Finance, the Wall Street Journal, Investor’s Business Daily and Barron’s are several of the sources used for financial information. 

* The National Debt figure comes from usdebtclock.org.   

* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.  Consult your financial professional before making any investment decision.  You cannot invest directly in an index.   Past performance does not guarantee future results. No strategy can assure a profit or protect against a loss.  Investments in the securities markets involve risk, such as loss of your principal.