Financial and Economic Brief - June 13, 2017

by © Liberty Publishing, Inc.

Wholesale Inventories Slip

According to the U.S. Commerce Department, wholesale inventories dropped 0.5% in April. Expectations fell short, as economists were expecting a gain of 0.2%. Sales by merchant wholesalers for April, were $462.3 billion, down 0.4% for the latest period. Total inventories by merchant wholesalers were $591 billion. The April inventories/sales ratio came in at 1.28, compared to 1.35 a year ago. For Q1 overall, inventory investment was on the weaker side, taking away from growth. Wholesale inventories data for May will be released in mid-July.
more...

Gymboree Files for Bankruptcy

Gymboree, a children's clothing retailer, announced it reached an agreement with lenders that will allow it to stay open as it begins a restructuring process. However, the announcement did not include any plans for store closings. The company reported a $324 million net loss for the three-month period that ended in January 2017. Furthermore, credit rating firm Moody’s recently included Gymboree in a list of 19 retailers facing “financial distress”. Daniel Griesemer will be replacing Mark Breitbard as CEO.
more...

Tech Stocks Fall

Technology stocks fell across Europe and Asia, and were set to fall again on Wall Street after the worst day for Apple (AAPL.O) shares in over a year. The Nasdaq was seen opening down 0.8% after an almost 2% drop on Friday, its third biggest one-day loss in 2017. “This is the nature of the tech sector. Valuations do from time to time become stretched and they come back and anyone who has paid a very high valuation might experience some short-term pain,” said Fergus Shaw, fund manager at Cerno Capital. However, economists will be watching to see whether the recent “dip” in economic data and uncertainty surrounding President Donald Trump has affected confidence.
more...

Request Information

Please let us know how we can serve you.




Our Location

Jennifer Blake Karaczen

NEXT Financial Group, Inc.
63 West Main Street, Suite O
Freehold, NJ 07728
ph: 732.506.7957
Jennifer.Karaczun@Nextrep.com

Latest News

Financial and Economic Brief - July 18, 2017

• NY Manufacturing Slows - Manufacturing in New York State grew in July but at a much slower pace than June and remains at a “mostly healthy level”.

• This Week’s Financial News - This week is an “unusually” light week of economic news but does include the kickoff of the second-quarter earnings season.

• Wall Street Opens Flat - Today U.S. stocks opened flat and held steady at record levels. Analysts estimate Q2 earnings for the S&P 500 companies rose 8.1% from Q2 2016.

Financial and Economic Brief - July 11, 2017

• Job Market Better Than Expected - The U.S. job market created 222,000 new positions in June which was higher than expected and the unemployment rate held at 4.4%.

• More Sears and Kmart Closings - On Friday Sears Holdings announced that it will close eight Sears department stores and 35 Kmart locations, adding to the list of 236 stores Sears has closed in 2017

• Steel Demand Forecast Rises - European steel association, Eurofer, raised its 2017 EU steel demand forecast but said a U.S. plan to levy steel tariffs on national security grounds could be terrible for global trade flows.

Financial and Economic Brief - July 4, 2017

• Consumer Sentiment Falls in June - U.S. consumer sentiment fell to 95.1 in June hitting a seven-month low and falling 2.1% from May, according to a new survey.

• Risk of Default? - According to the Congressional Budget Office (CBO) if lawmakers don't raise or suspend the country's debt ceiling, the Treasury might run short on money.

• Q1 Economic Growth "Upgraded" - The Commerce Department reported last week that the gross domestic product grew at an annual rate of 1.4% in Q1 2017, beating the estimate of 1.2%, reflecting the "new-found strength in consumer spending and exports."

Financial and Economic Brief - June 27, 2017

• Fed Policy to Tighten? - The indication of improving private creditworthiness, with the narrowing of credit spreads, along with record stock prices and falling bond yields, “could” inspire the Fed to continue tightening U.S. economic policy.

• U.S. Stocks and Oil Stalling - U.S. stocks trimmed gains on Monday, as technology stocks and oil prices “stalled.”

• China Opening to More Foreign Investors - U.S. investors will soon have access to the MSCI, a leading global index provider, which includes 222 Chinese stocks (A shares) in its emerging-markets stock index.

Financial and Economic Brief - June 20, 2017

• Home Construction Slowing - According to the U.S. Commerce Department, housing starts fell 5.5% in May to a seasonally adjusted annual rate of 1.09 million units.

• Foreign Stock Funds on the Rise - The most popular category of foreign stock funds returned an average of 14.9% this year and funds that focus on stocks from China and other emerging markets have returned 18.1%.

• Oil Prices Steady, For Now - Oil prices have steadied, after rising production in the U.S., Libya and Nigeria over the past month, which has “taken the edge off” an OPEC-led initiative to cut production.

Financial and Economic Brief - June 13, 2017

• Wholesale Inventories Slip - According to the U.S. Commerce Department, wholesale inventories dropped 0.5% in April.

• Gymboree Files for Bankruptcy - Gymboree, a children's clothing retailer, announced it reached an agreement with lenders that will allow it to stay open as it begins a restructuring process.

• Tech Stocks Fall - Technology stocks fell across Europe and Asia, and were set to fall again on Wall Street after the worst day for Apple (AAPL.O) shares in over a year.