Dow fell 61, decliners over advancers 5-2 & NAZ was off 30. The MLP index dropped 4+ to below 341 the REIT index was up fractionally to the 393s. Junk bond funds were mixed & there was buying in Treasuries. Oil is down to the 44s again & gold slipped lower.
AMJ (Alerian MLP Index tracking fund)
Consumer sentiment declined in Sep to the lowest level in year as Americans anticipated a weaker economy in face of a global slowdown and turbulent financial markets. The Univ of Michigan’s preliminary index dropped to 85.7 from 91.9 in Aug, the largest one-month decline since the end of 2012. Households were less upbeat about future growth in employment & wages than a few months earlier as 73% of respondents reported hearing news of negative economic developments. Stock market jitters may be shaking some Americans’ confidence in the health of the economy, especially as nations abroad experience growth slowdowns. Sustained improvement in the labor market & low energy prices will help provide a buffer for consumer attitudes, which will garner the attention of central bankers as they consider raising interest rates as soon as next week. The forecast called for a drop to 91.1. The 6.2 point monthly decline was the most since Dec 2012, when the gov moved toward higher taxes & spending cuts to reduce the budget deficit. The sentiment survey’s current conditions index, which measures Americans’ assessment of their personal finances, decreased to an 11-month low of 100.3 from a 105.1 in Aug. The measure of expectations 6 months from now fell to 76.4, the weakest in a year, from 83.4. Americans expected an inflation rate of 2.9% in the next year, up from 2.8% in Aug. They expect prices to rise 2.8% over the next 5-10 years, compared with 2.7% the previous month.
Consumer Sentiment in U.S. Declines to Lowest Level in a Year
Wholesale prices in the US were little changed in Aug, restrained by lower fuel costs that signal inflation will remain weak. Stagnant producer prices last month followed a 0.2% advance in Jul, according to the Labor Dept. The forecast called for a 0.1% drop. Costs fell 0.8% over the past 12 months. Depressed prices at the wholesale level, also reflecting declines in global commodity costs, signal inflation may linger below the Federal Reserve goal for some time. Policy makers have said low energy prices & the stronger dollar are transitory influences on inflation. Food prices rose 0.3% & energy expenses dropped 3.3%, with gasoline decreasing 7.7% (the biggest decline since Jan). Wholesale prices excluding food & energy rose 0.3%, matching the prior month’s gain & exceeding the forecast that projected a 0.1% advance. The increase was propelled by widening profit margins at clothing retailers. Excluding food & energy & also eliminating trade services to arrive at a reading that some prefer because it strips out another of the most volatile components of PPI, costs rose 0.1% after rising 0.2% in Jul. They were up 0.7% from the same month a year earlier.
After a wild week, trading its settling down a bit today. The economic data is not encouraging, but it means little. Next week, everybody is preparing for the first rate hike by the Fed in years. It has been well advertised & will not be a major increase, so the markets should be able to handle it. We'll see.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CLV15.NYM | Crude Oil Oct 15 | 44.62 |  1.30 (2.83%) |
| GCU15.CMX | Gold Sep 15 | 1,100.00 | 9.50 (0.9%) |
Consumer sentiment declined in Sep to the lowest level in year as Americans anticipated a weaker economy in face of a global slowdown and turbulent financial markets. The Univ of Michigan’s preliminary index dropped to 85.7 from 91.9 in Aug, the largest one-month decline since the end of 2012. Households were less upbeat about future growth in employment & wages than a few months earlier as 73% of respondents reported hearing news of negative economic developments. Stock market jitters may be shaking some Americans’ confidence in the health of the economy, especially as nations abroad experience growth slowdowns. Sustained improvement in the labor market & low energy prices will help provide a buffer for consumer attitudes, which will garner the attention of central bankers as they consider raising interest rates as soon as next week. The forecast called for a drop to 91.1. The 6.2 point monthly decline was the most since Dec 2012, when the gov moved toward higher taxes & spending cuts to reduce the budget deficit. The sentiment survey’s current conditions index, which measures Americans’ assessment of their personal finances, decreased to an 11-month low of 100.3 from a 105.1 in Aug. The measure of expectations 6 months from now fell to 76.4, the weakest in a year, from 83.4. Americans expected an inflation rate of 2.9% in the next year, up from 2.8% in Aug. They expect prices to rise 2.8% over the next 5-10 years, compared with 2.7% the previous month.
Consumer Sentiment in U.S. Declines to Lowest Level in a Year
Wholesale prices in the US were little changed in Aug, restrained by lower fuel costs that signal inflation will remain weak. Stagnant producer prices last month followed a 0.2% advance in Jul, according to the Labor Dept. The forecast called for a 0.1% drop. Costs fell 0.8% over the past 12 months. Depressed prices at the wholesale level, also reflecting declines in global commodity costs, signal inflation may linger below the Federal Reserve goal for some time. Policy makers have said low energy prices & the stronger dollar are transitory influences on inflation. Food prices rose 0.3% & energy expenses dropped 3.3%, with gasoline decreasing 7.7% (the biggest decline since Jan). Wholesale prices excluding food & energy rose 0.3%, matching the prior month’s gain & exceeding the forecast that projected a 0.1% advance. The increase was propelled by widening profit margins at clothing retailers. Excluding food & energy & also eliminating trade services to arrive at a reading that some prefer because it strips out another of the most volatile components of PPI, costs rose 0.1% after rising 0.2% in Jul. They were up 0.7% from the same month a year earlier.
Wholesale Prices in U.S. Little Changed
After a wild week, trading its settling down a bit today. The economic data is not encouraging, but it means little. Next week, everybody is preparing for the first rate hike by the Fed in years. It has been well advertised & will not be a major increase, so the markets should be able to handle it. We'll see.
Dow Jones Industrials
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