Economic and market updates

Economic Update for August 24, 2015

Highlights of news-making events of the past week, from the economy and profits to Europe and interest rates.

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economy

The BLS reported the CPI and core CPI both rose 0.1% in July. Commerce Dept. data showed housing starts rose 0.2% in July. The NAR noted existing home sales increased 2.0% in July. The Conference Board Leading Economic Index declined 0.2% in July. In flash Markit Economics reports, manufacturing contracted in China, expanded in Japan, and grew at a slower pace in the U.S. in August.

employment

Initial jobless claims rose by 4,000 to 277,000 for the week ended August 15, 2015, according to the Labor Department. The four-week moving average was 271,500.

profits

As of August 13, 2015, of the 461 S&P 500 Index companies reporting second-quarter earnings, 321 — or 69.6% — beat analysts' estimates, according to S&P Dow Jones Indices.

emotion

The Bloomberg Consumer Comfort Index rose to 41.1 in the week ended August 16, 2015, from 40.7 in the prior week.

europe

The Markit Flash Eurozone PMI Composite Output Index reached a two-month high at 54.1 in August from 53.9 in July. In a first estimate, Eurostat reported the euro area recorded a trade surplus in June. The U.K.'s Office for National Statistics noted that the CPI grew by 0.1% in the year to July 2015. Germany's Federal Statistical Office found producer prices fell 1.3% in July.

rates

The yield on the 10-year U.S. Treasury note declined.


risks

  • Interest-rate volatility as the market considers when the Fed will raise interest rates
  • Geopolitical risk in peripheral Europe and the Middle East


All economic and performance information is historical and does not guarantee future results. The views and opinions expressed are those of Putnam Investments, are subject to change with market conditions, and are not meant as investment advice.

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