Economic and market updates

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Monthly market summary: May 31, 2015

Economic Update for June 29, 2015   |   Download PDF

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

economy

The BEA reported that first-quarter GDP decreased at an annual rate of 0.2%, and consumer spending rose 0.9% in May. The Commerce Dept. stated new home sales jumped 2.2%, and durable goods orders fell 1.8% in May. In flash Markit Economics and HSBC June reports, manufacturing growth improved slightly in China, remained flat in Japan, and slowed in the United States.

employment

Initial jobless claims rose by 3,000 to 271,000 in the week ended June 20, 2015, according to the Labor Department. The four-week moving average was 273,750.

profits

The BEA reported corporate profits decreased 5.2% at a quarterly rate in the first quarter. As of June 18, 2015, of the seven S&P 500 Index companies that reported second-quarter earnings, five beat analysts' expectations, according to S&P Dow Jones Indices.

emotion

The final reading of the University of Michigan Index of Consumer Sentiment rose to 96.1 in June from 90.7 in May. The Bloomberg Consumer Comfort Index rose to 42.6 in the week ended June 21, 2015, from 40.9 in the prior week.

europe

The government of Greece ordered banks to close for six days beginning June 29 as the nation prepares for a popular referendum on the terms for new financing from international authorities. The Markit Flash Eurozone PMI composite rose to 54.1 in June from 53.6 in May. The European Commission's Flash Consumer Confidence Indicator improved in June.

rates

The yield on the 10-year U.S. Treasury note traded in a narrow range. China's central bank cut interest rates by a quarter percentage point and loosened reserve requirements for some banks.

risks

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