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Weekly Economic Update, February 6-10, 2017

on Feb 17, 2017 in Announcements: Financial Planning, General Parrott Insurance News

POSITIVES & NEGATIVES IN JANUARY’S JOB DATA
The Department of Labor’s latest jobs report showed 227,000 net new hires last month. Unfortunately, wages grew just 0.1% in January as the headline jobless rate rose slightly to 4.8%. The U-6 rate, counting the underemployed, rose 0.2% to 9.4%.1

STRONG CONSUMER CONFIDENCE & SPENDING
While the Conference Board’s monthly consumer confidence index declined 1.5 points in January, it remained at a high level with a 111.8 reading. Personal spending improved 0.5% in December, with personal incomes up 0.3%.2

ISM INDICES SHOW FURTHER SECTOR EXPANSION
The Institute for Supply Management’s purchasing manager indices were at high levels in January. ISM’s factory index gained 1.5 points to 56.0. Its service sector gauge ticked down 0.1 points to 56.5, but that still signaled solid growth.3

DODD-FRANK ACT FACES A REVIEW
Through an executive order issued Friday, President Donald Trump authorized a review of this law aimed at regulating activities of big banks. According to the New York Times, the directive also calls for major sections of Dodd-Frank to be revised.4

MINOR PROGRESS FOR THE S&P 500
The Federal Reserve stood pat on interest rates, bank shares rose on the Dodd-Frank news, and January hiring totals exceeded forecasts. These developments helped stocks make small weekly gains. In five days, the S&P 500 rose 0.12% to 2,297.42, and the Nasdaq 0.11%, to 5,666.77. The Dow lost 0.11% to settle at 20,071.46 Friday.5

Citations.
1 – investopedia.com/news/strong-january-jobs-report-wage-growth-still-soft/ [2/3/17]
2 – investing.com/economic-calendar/ [2/3/17]
3 – instituteforsupplymanagement.org/ismreport/nonmfgrob.cfm [2/3/17]
4 – nytimes.com/2017/02/03/business/dealbook/trump-congress-financial-regulations.html [2/3/17]
5 – markets.wsj.com/us [2/3/17]

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