Economic and market updates

Economic Update for November 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

Wholesale sales increased 1.3% in September, the Commerce Dept. reported. The Federal Reserve stated consumer credit advanced at an annual rate of 6.75% in September. China's National Bureau of Statistics noted the CPI rose 1.9% in October. The Nikkei Japan Services PMI climbed to 53.4 in October from 51.0 in September.

employment

Initial jobless claims rose by 10,000 to 239,000 in the week ended November 4, 2017, the Labor Department reported. The four-week moving average was 231,250.

profits

As of November 2, 2017, of the 408 S&P 500 Index companies reporting third-quarter earnings, 297 — or 72.8% — beat analysts' expectations, according to S&P Dow Jones Indices.

emotion

The University of Michigan's preliminary index of consumer sentiment dropped to 97.8 in November from 100.7 in October. The Bloomberg Consumer Comfort Index slipped to 51.5 in the week ended November 5, 2017, from 51.7 in the prior week.

europe

Eurostat reported that producer prices rose 0.6% and retail trade grew 0.7% in the euro area in September. Germany's Federal Statistical Office reported that exports jumped 4.6% and new orders for factory goods rose 1.0% in September. The Markit Eurozone PMI Composite Output slipped to 56.0 in October from 56.7 in September. The Markit Eurozone Retail PMI fell to 51.1 in October from 52.3 in September.

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.