Investment Commentary –September 5th, 2017

Market Indices as of Market Close September 5th, 2017
Dow 21,753 (13.21% YTD)
S&P 2,457 (12.16% YTD)
NASDAQ 6,301 (19.55% YTD)
Global Dow 2,835 (12.15%)
Gold $1,344 (15.37%)
OIL $48.62 (-14.75%)
US 10Y Treasury 2.135 (-38.58%)
Barclay Bond Aggregate (3.45% YTD)

U.S. stocks suffer worst daily loss in 3 weeks on policy uncertainty, North Korea

Stock-index benchmarks closed sharply lower on Tuesday as fears over North Korea and worries about a lack of policy progress in Washington stoked a flight to assets perceived as safe and out of stocks. The S&P 500 SPX, -0.76% fell 0.8%, or 19 points, to end the day at 2,457, while the Dow Jones Industrial Average DJIA, -1.07% fell 234 points, or 1.1%, to 21,753. The tech-laden Nasdaq Composite Index COMP, -0.93% registered a 0.9%, or roughly 60 point, loss at 6,375. Both the S&P 500 and Nasdaq halted multiday win streaks. All three benchmarks registered their worst one-day drop since Aug. 17, according to FactSet data. In individual stocks, United Technologies Corp. UTX, +0.16% tumbled d 6% following the news that it agreed to buy Rockwell Collins Inc. COL, +0.30% for $23 billion. Biotech business Insmed Inc INSM, +119.61% jumped 121% as the company announced that it is moving in to the reviewing and approval process for its treatment for NTM lung disease.

Annuity Myths & Realities

Today’s Annuities Vs. Yesterday’s Thinking. You may have noticed that certain financial pundits are determined to give annuities a bad rap. But some of the most prevalent objections concerning annuities are based on misinformation — or, in some cases, they’re based on “conventional wisdom” that is simply outdated. Similar to the variety of features available in today’s phones, annuities have evolved over the years.

Headlines around the web:

The August jobs report fell short of many economists’ expectations, taking some of the muscle out of the labor market’s recent strength. The gain of 156,000 jobs was below forecast, jobs growth figures for the preceding two months were revised downward, the unemployment rate rose slightly, and wage growth was sluggish.

Flat August

On the heels of a strong July, stocks were little changed in August. The S&P 500 spent most of the month in the red, but ended with a slightly positive return of 0.3% and posted its fifth consecutive monthly gain. The Dow was slightly negative for August.

September challenges

The August congressional break took policy issues out of the spotlight in the financial markets, but that’s about to change with Congress back in session. Three big issues are likely to be addressed this month: lifting the nation’s debt ceiling, approving the fiscal 2018 federal budget, and debating President Trump’s proposed tax changes, including a reduction in corporate rates.

On Tap for the rest of the week:

Wednesday: Institute for Supply Management’s nonmanufacturing index. Trade balance, U.S. Census Bureau.
Friday: Wholesale inventories, U.S. Census Bureau. Consumer credit, U.S. Federal Reserve


Leaders this past week include Healthcare and Basic Materials.. Laggards included Utilities and Financials.

Investment Definition: Barclay’s Aggregate

An index used by bond funds as a benchmark to measure their relative performance. The index includes government securities, mortgage-backed securities, asset-backed securities and corporate securities to simulate the universe of bonds in the market.

The views presented are not intended to be relied on as a forecast, research or investment advice and are the opinions of the sources cited and are subject to change based on subsequent developments. They are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investments.