“If it’s in the papers, it’s in the price.”
-Bill Miller
Here’s what you need to know this week:
· Stocks hold flat on a busy week
· A slow week of news leaves markets aimless
New Office
Quick reminder, we’re moving! Our new office is located about one mile from our current office:
Our old office is circled in red and the new office is circled in green. Our new address will be 3817 NW Expressway Ste 1030; again, we will not be moving until October, but we wanted to let everyone know about the beginning of this exciting new chapter!
Hold Steady
Stocks stayed roughly even last week as investors digested two key inflation reports. First was the July Consumer Price Index (CPI) report on Wednesday, and the report showed was in line with analysts’ expectations of 3.4% annualized:
Next was the July Producer’s Price Index (PPI) report which showed manufacturing inflation unchanged, lower than the 0.2% monthly rise expected by analysts. The report also showed annualized producer inflation at 4.7%[1]. These reports, combined with the soft jobs report the week prior, have led investors to believe the Federal Reserve will forgo an interest rate hike at their next meeting on September 16th and will instead opt to hold rates steady. As of writing, the bond market is assigning a 66% chance of no rate hike, compared to just 41% a month ago[2].
No News is Good News?
This week is unusually slow for markets: no inflation reports, jobs reports, earnings reports or Fed meetings. Negotiations with Iran are ongoing but have been a low hum beneath the markets for months, and the midterms are still too far away to have any real impact. This isn’t to say nothing will happen; in fact, one big news story can have an outsized impact in weeks like these.
Oil prices and bond yields are continuing to push higher and both threaten the bull market in stocks. In the vacuum of any other news, an announcement about Iranian negotiations or a Congressional bill may be enough to shake investor ennui, but right now markets are looking ahead to the next Fed meeting on September 16th as the main catalyst. Mary Wilson Little once said “ambition and the thermometer always move in opposite directions” and this week even the stock market itself seems lulled into a malaise by this extreme summer heat.
What Else
· President Trump disputed reports of poor conditions aboard the USS Lincoln after service members’ families spoke to the media about deteriorating morale amongst soldiers
· The US has withdrawn soldiers from joint training drills with the South Korean military as President Trump strikes up talks with North Korean leader Kim Jong Un
· Israel renewed airstrikes on Lebanon, complicating US-Iran peace talks
· Ukraine struck Moscow with 637 drone bombs in retaliation for Russian missiles fired into a Ukrainian village
· The Los Angeles Lakers sold to a consortium of investors for a record-setting $12.5 billion
What We’re Reading
Construction workers in the Belgian city of Dendermonde were renovating a defunct brewery when they made the discovery of a lifetime. Hidden beneath the bricks of a small cellar were 49 gold bars and 4,000 gold coins valued at roughly $10 million. The workers alerted the authorities and the question quickly arose: who gets to keep the gold? Click below to find out!
What’s Happening Downtown
Ten Buck Lunch Week returns to Midtown next Monday through Friday, August 24th – 28th. This event features $10 lunch deals from 11 AM to 2 PM from dozens of participating Midtown restaurants. Click below for a full list of restaurants and their $10 meals:
To read more from our blog, click here
Written by: Kane Ogle, CFP®
Steve Beck, Kane Ogle, CFP®, Amber Eduvigen, CFP®, Cale Olbert, CFP®, Brett Valentine, CFP®, Brandon Ingerson, Bill Daniel, Sam Postich, Jenni Hess, Hannah Hartman
[1] CNBC [2] CME FedWatch