Economic and market updates

Economic Update for February 13, 2017

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 import prices advanced 0.4% and export prices edged up 0.1% in January. The Commerce Dept. reported wholesale trade was up 2.6% and inventories increased 1.0% in December. The trade deficit narrowed in December. The Fed noted consumer credit rose 6.0% in December. The Caixin China Composite PMI fell to 52.2 in January from 53.5 in December.

employment

Initial jobless claims fell by 12,000 to 234,000 in the week ended February 4, 2017, according to the Labor Dept. The four-week moving average was 244,250.

profits

As of February 3, 2017, with 55% of S&P 500 Index companies reporting fourth-quarter earnings, 65% have beat the mean EPS estimate, according to FactSet.

emotion

The University of Michigan's preliminary index of consumer sentiment declined to 95.7 in February from 98.5 in January.

europe

The Markit Eurozone Retail PMI dipped to 50.1 in January from 50.4 in December. The Federal Statistical Office reported that imports and exports both increased in Germany in 2016, and industrial production fell 3.0% in December. The Markit Germany Retail PMI slipped to 50.3 in January from 52.0 in December.

rates

The yield on the 10-year U.S. Treasury note traded in a narrow range.

risks

  • Uncertain GDP impact of President Trump's fiscal and trade policies
  • Deflating house prices in major cities across China
  • Populist political momentum across Europe

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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