Economic and market updates

Economic Update for April 27, 2015

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

Download PDF
economy

New home sales fell 11.4% in March, the Commerce Dept. found. Durable goods orders rose 4.0% in March. The NAR found existing home sales rose 6.1% in March, their highest annual rate in 18 months. In Markit Economics and HSBC flash reports, manufacturing growth slowed in the U.S., and contracted in Japan and China in April.

employment

Initial jobless claims increased by 1,000 to 295,000 in the week ended April 18, 2015, according to the Labor Department. The four-week moving average was 284,500.

profits

As of April 17, 2015, of the 60 S&P 500 Index companies reporting first-quarter earnings, 44 beat analysts' estimates, according to S&P Dow Jones Indices.

emotion

The Bloomberg Consumer Comfort Index slipped to 45.4 in the week ended April 23, 2015, from 46.6 in the prior week.

europe

The Markit Flash Eurozone PMI Composite Output Index fell to 53.5 in April from 54.0 in March. Germany's Federal Statistical Office noted producer prices fell 1.7% in March. The ZEW Indicator of Economic Sentiment for Germany fell for the first time since October 2014, declining by 1.5 percentage points in April. The GfK Consumer Sentiment Indicator for Germany inched higher in May.

rates

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

risks

  • Interest-rate volatility as the market considers when the Fed will raise interest rates
  • Geopolitical risk in Eastern Europe and the Middle East
  • Deflation risk and currency instability in 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.