Economic and market updates

Economic Update for August 14, 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 both the CPI and core CPI rose 0.1% in July. The Producer Price Index slipped 0.1% in July. The Fed noted consumer credit increased at an annual rate of 4.5% in the second quarter. Wholesale inventories grew 0.7% in June, the Commerce Dept. found. China's National Bureau of Statistics reported the CPI increased 1.4% in July. China's trade surplus widened in July, the customs office noted.

employment

Initial jobless claims rose by 3,000 to 244,000 in the week ended August 5, 2017, according to the Labor Department. The four-week moving average was 241,000.

profits

As of August 3, 2017, of the 422 S&P 500 Index companies reporting second-quarter earnings, 296 — or 70.1% — beat analysts' estimates, according to S&P Dow Jones Indices.

emotion

The Bloomberg Consumer Comfort Index rose to 51.4 in the week ended August 6, 2017, from 49.6 in the prior week.

europe

Germany's Federal Statistical Office stated industrial production fell 1.1% in June. German exports rose 0.7% in June. The U.K.'s Office for National Statistics reported that the trade deficit widened in the second quarter. The U.K.'s Index of Production decreased 0.4% in the second quarter.

rates

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

risks

  • Uncertain timeline on key U.S. pro-growth measures
  • Leading indicators of Chinese nominal growth rolling over
  • Mismatch between low volatility market environment and policy uncertainty

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.