Economic and market updates

Economic Update for August 22, 2016

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 was unchanged and the core CPI increased 0.1% in July. Housing starts climbed 2.1% in July, the Commerce Dept. noted. The Fed stated industrial production rose 0.7% in July. The Conference Board Leading Economic Index increased 0.4% in July. Japan's METI found industrial production rose 2.3% in June.

employment

Initial jobless claims fell by 4,000 to 262,000 in the week ended August 13, 2016, the Labor Department reported. The four-week moving average was 265,250.

profits

As of August 11, 2016, of the 455 S&P 500 companies reporting second-quarter earnings 319 — or 70.1% — beat analysts' estimates, according to S&P Dow Jones Indices.

emotion

The Bloomberg Consumer Comfort Index jumped to 43.6 in the week ended August 14, 2016, from 41.8 in the prior week.

europe

Eurostat reported that euro area annual inflation was 0.2% in July, up from 0.1% in June. In a first estimate, Eurostat found the euro area posted a trade surplus in June. The U.K.'s Office of National Statistics noted retail sales jumped 1.4% in July. The ZEW Indicator of Economic Sentiment for Germany increased in August.

rates

The yield on the 10-year U.S. Treasury note moved higher. In the Fed's July meeting minutes, Fed officials were divided on when to raise interest rates.

risks

  • Political uncertainty surrounding U.S. election cycle
  • Threat of terrorist acts in Europe
  • Constitutional referendum in Italy

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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