Weekly Review | Sep 29 to Oct 6

Approved for release October 07, 2014

Market Indices

Index Sep 29, 2014 Oct 6, 2014 Change Percent
DJIA 17107.69 17009.69 -98 -0.57
Nasdaq 4465.84 4475.62 9.78 +0.22
S&P500 1978.96 1967.90 -11.06 -0.56
Russell 2000 1110.43 1104.74 -5.69 -0.51
Russell 1000 920.50 918.57 -1.93 -0.21

Equity Review

Last week the S&P 500 saw its biggest one-day gain in almost two months, and the Dow Jones Idustiral Average posted its biggest gain in seven months. The S&P 500 closed down 0.75% at 1967.90. The Dow Jones finished down 0.06% at 17,009.69. JP Morgan Chase disclosed a recent security breach which compromised approximately 76 million household accounts and seven million small businesses. Customers using Chase.com and JP Morgan online as well as mobile apps, may have been affected. The bank said customer names, addresses, phone numbers, and email addresses may have been stolen. But there is no evidence that account numbers, social security numbers, and passwords were stolen. Furthermore, JP Morgan Chase says at this time, no fraud has been reported. Walgreen Company reported quarterly results that matched estimates. The drug store chain posted a net loss of $239 million or adjusted per share earnings of $0.74. Management stated, “While continuing to work through pharmacy margin pressure, we were able to achieve improved top-line pharmacy growth as our retail pharmacy market share increased 19 percent.” Blackberry reported better-than-expected second quarter earnings. For the quarter ended August 30, Blackberry’s net loss was $207 million or $0.02 per share. The estimate was $0.15 loss. The company said it sold 2.4 million Blackberry smartphones during the quarter. CEO John Chen said, “Our workforce restructuring is now complete, and we are focusing on revenue growth with judicious investments to further our leadership position in enterprise mobility and security, driving us towards profitability during fiscal year 2016.”

Economic Indicators

Jobless Claims (4 wk avg)
1.42 Sep 27, 2014 294,750
Sep 20, 2014 299,000
Monthly Job Gains
September 2012 248,000
August 2012 180,000
ISM Manufacturing Index
-4.07 September 2012 56.6
August 2012 59.0
ISM NonManufacturing Index
-1.68 September 2012 58.6
August 2012 59.6

Economic Review

The U.S. trade deficit fell in August due to higher imports. Excluding petroleum, the deficit rose to $45.1 billion. Economists say cheaper foreign currencies and a stronger dollar are enabling Americans to more easily afford foreign goods. However, oil production is surging in the U.S. because technologies such as fracking are allowing companies to tap reserves previously inaccessible. The U.S. exported a record $14.1 billion in petroleum products and imported the least amount, $27.2 billion, since late 2010.  The Labor Department reported that the U.S. added 248,000 jobs in September. The forecast was 220,000. Unemployment fell to 5.9% from 6.1%. The U.S. economy has gained an average of 227,000 jobs a month, up 17% from 2013, and is on track to add the most jobs in nine years. The number of Americans applying for new unemployment benefits fell by 8,000 to 287,000 in the week ended September 27. Economists say claims remain at low levels consistent with an improving labor market. The Conference Board reported that the U.S. consumer confidence index fell to 86.0 in September from 93.4 in August. A spokesman for the board said, “The August employment report apparently led many Americans to think the economy is slowing even though a ream of more recent data suggests growth remains fairly strong. A less positive assessment of the current job market, most likely due to the recent softening in growth, was the sole reason for the decline in consumers’ assessments of present-day conditions. Consumers expect economic growth to ease in the months ahead.”

U.S. Bonds

Two Year Note 0.564

Ten Year Note 2.443

30 Year Bond 3.135

Currencies & Commodities

Euro 1.2545

Pound 1.5988

Yen 109.43

Canadian Dollar 1.1219

Crude Oil 89.63

Gold, Dec 1198.0

Economic Calendar

Tuesday

Consumer Credit $20.0 B

Thursday

Wholesale Trade 0.3 %

Friday

Export Prices -0.1 %

Import Prices -0.8 %

Treasury Budget $72.0 B

*Actual consensus values reported.

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