Weekly Economic & Market Update 6/29/2015

Week in review

Global stocks gave up some ground this past week as economic data points from around the globe leaned towards the weak side and Greece danced closer to economic and political disaster.

Here in the US, Durable Goods New Orders ex-Transportation came in on a month over month basis, up .5% from April to May. While this is a positive, new orders have been slowing over the last few months. Additionally here in the US, 1st quarter seasonally-adjusted, annualized Gross Domestic Product (GDP) came in at -.2%. While some are pointing to harsh weather as the cause of the weaker number, it is important to remember that the numbers are already seasonally adjusted.

Internationally, Japan reported a year-over-year, annualized Consumer Price Index (CPI) for May of .5%. This is far from the goal of 2-3%. To make matters worse, Japan is testing the limits of economic stimulus and is still unable to hit their inflation targets.

This past weekend, the European economic ministers removed themselves from the circular economic talks with Greece and cut off further bailout funding. The European economic ministers were prompted by the Greek government calling for a referendum vote on the continuation of austerity and European bailout loans.

Within Greece, the government called for banks to be closed until at least this coming Thursday, and for the stock market to close. Additionally, the government instituted capital controls to stop money from running out of the banks and country. Greek bank withdrawals are being limited to $66 per day, per account.

The news out of Greece rattled the futures market from China to the US. Certainly, this coming week is setting up to be a volatile one. As always, we will continue to monitor the global market place.

Getting Technical with Market Charts

In this section, we present charts of the S&P 500 Stock Index and the US Bond Market Index relative to their 50 day (blue line) and 200 day (red line) moving averages. In addition, we have added the blue shaded area which represents the recent trading channel. The 50 and 200 day moving averages are widely followed market trend indicators that provide a general picture of the health of the broad indexes.

Chart 1 – S&P 500

SPX 6.29.15

 

 

 

 

 

 

 

 

Chart 2 – Aggregate Bond

AKG 6.29.15

 

 

 

 

 

 

 

 

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Disclaimer – Information contained herein is taken from sources believed to be reliable, but cannot be guaranteed as to its accuracy. Market opinions contained herein are intended as general observations and are not intended as specific investment advice. The Standard and Poors 500 Index is an unmanaged group of securities considered to be representative of the stock market in general. The Barclays Aggregate Bond Index represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment-grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. Contact your investment professional to discuss suitability for your particular circumstances. This article does not constitute an offer of sales of any securities. Securities trading is speculative and involves the potential loss of investment. Past results are not necessarily indicative of future results. Lighthouse Financial Advisors, Inc., dba Lighthouse Wealth Management, is registered as an investment advisor with the SEC and only transacts business in states where it is properly registered, excluded or exempted from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the advisor has attained a particular level of skill or ability.