September 5, 2016   //   Financial Planning   //   By PKF Mueller Solutions


September 5, 2016



Payrolls expanded with 151,000 net new jobs last month, according to the Department of Labor’s latest report. The jobless rate was unchanged at 4.9%, and the U-6 rate tracking underemployment remained at 9.7%. After the release of the data, Wall Street traders saw only a 21% chance of a September interest rate hike by the Federal Reserve and a 55% chance of a rate increase by the end of 2016.



Taking a surprisingly steep drop, the Institute for Supply Management’s manufacturing purchasing manager index fell down to 49.4 in August, indicating a slowdown in U.S. factory activity. In July, the PMI had a reading of 52.6.


SOLID Consumer Confidence, spending NUMBERS

The Bureau of Economic Analysis noted a 0.3% rise in personal spending and a 0.4% gain for personal income in July. The Conference Board’s consumer confidence index rose 4.4 points in August to an impressive 101.1 mark.



Housing contract activity increased 1.3% in July, according to the National Association of Realtors, more than offsetting the 0.8% June fall. The May edition of the 20-city S&P/Case-Shiller home price index showed a 5.1% year-over-year gain in home values.



Across five trading days, the broad benchmark rose 0.50% to 2,179.98. The Nasdaq and Dow posted similar gains in the same interval – the Nasdaq rose 0.59% to 5,249.90; the Dow, 0.52% to 18,491.96. The CBOE VIX – the “fear index” measuring market volatility – closed at just 11.97 Friday, down 12.31% for the week.


THIS WEEK: Monday is Labor Day, so U.S. financial markets will be closed. ISM’s August service sector PMI arrives Tuesday, plus earnings from Casey’s General Stores, Dave & Buster’s, and TiVo. Wednesday, Apple may unveil the iPhone 7 (and other new products) at its annual fall media event, the Federal Reserve issues a new Beige Book, and Hewlett Packard Enterprise and Valspar announce quarterly results. Thursday, the Department of Labor presents the latest initial claims figures and Barnes & Noble announces quarterly earnings. Friday, Hovnanian and Kroger report earnings.

table 3

Sources:,, – 9/2/16

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

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