Equities in August saw many peaks and valleys throughout the month, finally rallying at the end of the month. Strong second-quarter gross domestic product (GDP) figures, steady job gains, and increased consumer spending sent stocks higher, despite stagnant inflation and heavy personal and financial losses caused by Hurricane Harvey. The large caps of the S&P 500 and Dow posted marginal monthly gains with the tech-heavy Nasdaq leading the way closing August up 1.27%. The small caps of the Russell 2000 continued to lag, falling 1.39% from its July closing value. The Global Dow inched down 0.32% for the month, but is still strong year-to- date, up over 12.50%. The prices of 10-year Treasuries climbed, sending yields lower.
By the close of trading on August 31, the price of crude oil (WTI) was $47.07 per barrel, down from the July 31 price of $50.18 per barrel. The national average retail regular gasoline price was $2.399 per gallon on August 28, up from the July 31 selling price of $2.352 and $0.162 more than a year ago. The price of gold increased by the end of August, closing at $1,327.20 on the last trading day of the month, up $51.60 from its July 31 price of $1,275.60.
|Market/Index||2016 Close||Prior Month||As of August 31||Month Change||YTD Change|
|Fed. Funds||0.50%-0.75%||1.00%-1.25%||1.00%-1.25%||0 bps||50 bps|
|10-year Treasuries||2.44%||2.29%||2.12%||-17 bps||-32 bps|
Equities data reflect price changes, not total return.
Chart reflects price changes, not total return. Because it does not include dividends or splits, it should not be used to benchmark performance of specific investments.
Investors will look for stock values to continue to climb in September following a bumpy August. The month kicks off with the jobs report for August, which comes out the first day of September. The FOMC meets in September following a break last month. Slowing inflation has tempered the Committee’s push for higher interest rates. The final second-quarter GDP figures come out at month’s end.
Data sources: Economic: Based on data from U.S. Bureau of Labor Statistics (unemployment, inflation); U.S. Department of Commerce (GDP, corporate profits, retail sales, housing); S&P/Case-Shiller 20-City Composite Index (home prices); Institute for Supply Management (manufacturing/services). Performance: Based on data reported in WSJ Market Data Center (indexes); U.S. Treasury (Treasury yields); U.S. Energy Information Administration/Bloomberg.com Market Data (oil spot price, WTI Cushing, OK); http://www.goldprice.org (spot gold/silver); Oanda/FX Street (currency exchange rates). News items are based on reports from multiple commonly available international news sources (i.e. wire services) and are independently verified when necessary with secondary sources such as government agencies, corporate press releases, or trade organizations. All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Past performance is no guarantee of future results. All investing involves risk, including the potential loss of principal, and there can be no guarantee that any investing strategy will be successful.
The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange. The Russell 2000 is a market-cap weighted index composed of 2,000 U.S. small-cap common stocks. The Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide. The U.S. Dollar Index is a geometrically weighted index of the value of the U.S. dollar relative to six foreign currencies. Market indices listed are unmanaged and are not available for direct investment.
MMBB is not registered as an investment adviser with either the United States Securities and Exchange Commission or any state securities regulator. MMBB does not receive compensation with respect to non-MMBB plan assets from any party for any advice given, referral made or transaction ultimately undertaken on account thereof. Neither MMBB, any affiliate thereof, nor MMBB's [plans] are subject to registration, regulation, or reporting under the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, the Investment Advisers Act of 1940 or state securities laws, and, therefore, plan participants and their beneficiaries and other persons receiving investment advice from MMBB will not be afforded the protections thereof. All persons should consider carefully the risks attendant to any investment as the value of such investments, and the income, if any, derived therefrom, may increase or decrease and may result in a loss of principal invested. The past performance of any investment or financial product is not a guarantee of future performance. You should consult with your own accountant or tax adviser as to the tax ramifications of entering into, holding or exiting any investment. MMBB is not offering or soliciting any transaction in any security nor is any information or advice intended for distribution to any person in any jurisdiction where doing so would result in contravention of any applicable laws, rules or regulations.