The Week's U.S. Economic Calendar

Select Positive Data Reports

  • Business Inventories
    • (+0.5% versus survey of +0.4% and prior of +0.3%)
  • Retail Sales Advance MoM
    • (+0.6% versus survey of +0.3% and prior of -0.2%)

Select Negative Data Reports

  • Building Permits MoM
    • (-4.1% versus survey of -2.0% and prior of +7.4%)
  • Housing Starts MoM
    • (-4.8% versus survey of +0.4% and prior of +8.3%)


Market Comments

  • Large cap U.S. stocks (S&P 500) fell for the second consecutive week, down -0.6%, as investors began to question the viability of President Trump’s pro-growth agenda. Small cap equities (Russell 2000) faired much worse than their large cap counterparts, falling -1.2%.
  • Six of the eleven sectors were negative for the week, highlighted by Energy (-2.4%), Telecom Services (-1.8%) and Consumer Discretionary (-1.8%). Utilities (+1.5%) and Materials were the best performing sectors for the week.
  • Developed international equities (MSCI EAFE) outperformed the U.S., advancing +0.1%, as gains in France and Australia offset losses in Japan and the United Kingdom. Emerging market equities (MSCI EM) returned +1.6% amid large gains in both Chinese and South Korean equities.
  • Yield oriented equities posted mixed returns for the week, with MLPs declining sharply, down -3.3%, while REITs and the aforementioned Utilities generated nominal returns of +0.3% and +1.5%, respectively.

In The News

  • Sales at U.S. retailers rose a larger-than-expected +0.6% in July, the biggest monthly gain since December, as Americans shelled out more for cars, furniture and, more than anything, online goods.
  • Minutes from the July 25-26 meeting released Wednesday reveal new doubts over sagging inflation in the past few months are driving a split at the Federal Reserve about the timing of the next increase in interest rates. The internal debate raises the possibility that the Fed could deviate from its plans for a third rate increase this year.
  • A terrorist ran over pedestrians with a van in the heart of Spain’s second-largest city on Thursday, killing at least 13 people in an attack claimed by Islamic State. More than 100 others were injured, many so severely that the death toll could rise, according to Joaquim Forn, the Catalan region’s interior minister. Hours after the attack, police killed five alleged terrorists as they responded to a separate attack that hurt seven people in the town of Cambrils.

Performance Data as of August 18, 2017

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Index Disclosure
The returns and volatility of the indices displayed may be materially different than the client’s account, and a client’s holdings may differ significantly from the securities that comprise the indices. The indices are disclosed to allow for comparisons to well-known and widely recognized indices, and may or may not be appropriate for performance comparisons. An investor cannot invest directly in the index.